Michael Pettis
Michael Pettis

@michaelxpettis

3 Tweets 12 reads Aug 07, 2023
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Interesting article. It is becoming increasingly clear that the Chinese economy is splitting up into two very different parts, the 6-7 wealthier provinces and municipalities, with higher incomes, diversified economies, high but...
bloomberg.com
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manageable debt, and growing working populations, versus the rest. As this article notes, for example "Jiangsu and Zhejiang [where Guandan first evolved] aren’t immune to sluggish consumer spending, a shaky property market and towering local government debt, but they are...
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among the provinces which have curbed their budget deficits the most. And when it comes to strategic priorities, such as chip manufacturing, they are still offering billions of dollars in financial incentives for companies able to access them."

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