from Hacker News

China’s Economic Model Is in Crisis

by 1PlayerOne on 1/28/23, 5:59 PM with 5 comments

  • by 1PlayerOne on 1/28/23, 6:18 PM

    China’s growth model has two parts. First, through a variety of policies, you increase the share of national income that goes into savings and reduce the share that goes into consumption. In practice, this means restricting the amount of GDP that goes to households and increasing the amount that goes to businesses. Second, you channel those savings through the banking system into investment.

    This model is not unique to China. Quite a number of countries have followed it. China has just followed it to a greater extent than any country in history.

  • by 1PlayerOne on 1/28/23, 6:16 PM

  • by 1PlayerOne on 1/28/23, 7:34 PM

    A falling population is a problem for China as a military power. But if you’re thinking about the Chinese economy, it’s much less of a problem.