Could China's Economic Policies Trigger Another Crisis?

China has tough going. The people are thrifty and save. A LOT of that saving in housing. If you go to one of the new cities - often with no people living in the city - all the house will have already been sold - as investments. For China to boost it's economy on an ongoing basis people have to spend more money. More money in circulation. Today there is huge spending on cars and housing and factory renewal because of government boosting. That pattern needs to change, but the people are not likely to change.

I think yes. This may lead to another Global Economic Crisis. By transferring wealth from households to boost the profitability of producers, China's ability to grow consumption in line with growth of the nation's GDP is severely hampered. According to many economists, the Chinese side of the equation, remains unaddressed. Far from making the promised progress on needed structural reforms, China has either stood pat in the past year or has probably regressed in terms of taking steps that would reorient its economy toward consumption and away from savings and investment. As the dollar has declined in value in the past year, so has the RMB — making Chinese goods cheaper in the international marketplace.