A stunning inside look at how and why the Chinese economy is barreling towards disaster and the impact its collapse would have on the rest of the world.
'One of the clearest and most thorough statements of an argument often made about the country: that its government has relied on constant stimulus to keep growth strong, an addiction that is bound to backfire. Second, he comes closer than any previous writer to covering the Chinese economy as Michael Lewis, the hugely popular author of THE BIG SHORT, might do. His analysis is informed but accessible, animated by anecdotes and characters, some colourful, some verging on tragic . . . McMahon is among the most compelling of the many analysts who conclude that China's economic miracle will end painfully' The Economist
The world has long considered China a juggernaut of economic strength, but since the global financial crisis, the country's economy has ballooned in size, complexity, and risk. Once dominated by four state-owned banks, the nation's financial system is a tangle of shadow banking entities, informal financial institutions, and complex corporate funding arrangements that threaten growth, stability, and reform efforts. The country has accumulated so much debt so quickly that economists increasingly predict a financial crisis that could make 'Brexit' or Greece's economic ruin seem minor, and could undermine China's ascent as a superpower. Earlier this year, President Xi Jinping issued an urgent call for reform that gives the country until 2020 to
Dinny McMahon spent six years in Beijing as a financial reporter with The Wall Street Journal, where he focused on rising Chinese debt levels, urbanization, and the role of the country's state sector in its economy. Prior to that he was Shanghai-based reporter with Dow Jones Newswires, where he wrote about China's foreign exchange markets. In 2015, McMahon left China and The Wall Street Journal to take up a fellowship at the Woodrow Wilson International Centre for Scholars, a think tank in Washington DC. He was awarded the fellowship to write this book.