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Why China Isn’t Sending Money to Everyone (Andrew Batson’s Blog, 5 min read) The worst of the crisis is over in China, unlike in the West. China has practised fiscal conservatism since on per capita basis its budgetary space is still limited. It can also be argued that it tends to prioritize production over consumption due the prevalence of socialism.
China’s Vanishing Trade Surplus (Milken Review, 13 min read) China’s trade surplus is trending lower and could potentially turn into a deficit in the future. This is because demand is transitioning towards domestic consumption and demographics are ageing rapidly (saving rate will decline which will, in turn, have significant repercussions for the US to run a budget deficit at low-interest rates).