Death of Globalization will Shatter China

The huge monetary stimulus led to an over-heating of the economy, because productive investment opportunities were already non-existent. “Free money” fueled wide-spread inflation and powered a speculative real estate bubble. Chinese wages rose so dramatically that labor costs are now cheaper in Vietnam, Bangladesh and even Mexico; consequently, Chinese exports are under heavy price pressure. Now with faltering global demand, financially overextended Chinese businesses are only surviving because bank loans have been refinanced and rolled-over.

....................... Chriss Street