Is Chinese growth a Ponzi scheme?

Chris Watling | Longview Economics | 11 April 2013

Cyclically, China's economic growth looks to be gathering some momentum. Car sales are breaking out to new record highs, house prices rose sharply in February while leading economic indicators are mostly indicating strengthening growth in coming quarters (see China not firing on all cylinders).

Structurally, however, the quality of Chinese growth has deteriorated in recent years. Since the credit stimulus in 2009, Chinese growth has remained heavily dependent on h...