Is China losing its magical economic powers?
To many, Beijing's success in steering around the 2008 global crisis was nothing less than supernatural. That the world's biggest trading nation, one perilously reliant on exports, fared so well seemed better explained as some paranormal event than a B-school case study. China pulled off the feat with an otherworldly onslaught of stimulus and credit, one that has continued until very recently.
That's why a recent plunge in credit expansion has many China watchers wondering if the jig is up. It may very well be.
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