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Michael Pettis: Chinese economy depends on expanding global manufacturing share
Michael Pettis examines how the Chinese economy is structured around increasing its share of global manufacturing. He emphasizes that this model relies on competitive advantage rather than comparative advantage.
Pettis has previously warned that failing to address persistent financial imbalances could result in more disruptive adjustments to the system, as noted in his analysis of systemic risks. He has also highlighted how smaller Chinese banks face rising pressure as real estate exposure limits their lending capacity, according to a recent commentary. These perspectives inform his outlook on the Chinese economy's structural focus on manufacturing.
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