Source: CNBC
On CNBC, Michael Pettis discussed why he hoped for a slowdown in Chinese economic growth. He said that as China’s economy moves away from investment to consumption, one would expect a slowdown in the economy. However, due to the government keeping investment and debt levels high, the growth rate has also remained high. He concluded that the high amount of debt, rather than the reported high amount of growth, should be the major concern of those watching China’s markets.