China’s Internal Stresses Multiply

As we've discussed in prior issues, China faces an extraordinary set of major challenges, now and in the coming decade. Beginning in 1978, China has consistently managed its problems to take maximum advantage of its strengths and "kick intractable problems down the road." However, the global recession and the weak recovery uncovered the flaws inherent in China's systems and severely constrained its options. What are these flaws? What are their implications — and should you respond? We'll provide the answers.