The country’s bright young minds are having a hard time landing a job; its white-collar professionals are hit by pay cuts and layoffs; its entrepreneurs struggle to finance their businesses and pay off debts; its middle-class families are seeing their wealth slashed by crumbling housing prices; and its rich race to move money out of the country.
And that is what’s generated some of the more positive sentiment week. But nothing really changes in terms of the structural outlook.” China’s decades-long investment-led growth has reached “a dead end,” and fundamental overhauls of its fiscal system — including a redistribution of income and greater transfers to households — are needed to rebalance the economy toward a more sustainable consumption-led growth model, Wright said.