Its the slowest rate in 30+ years. First quarter was 6.4% Second quarter was 6.2% Third quarter was 6% This is because the “quality” of China’s growth is, t

Its the slowest rate in 30+ years. First quarter was 6.4% Second quarter was 6.2% Third quarter was 6% This is because the “quality” of China’s growth is, to use a technical term, kinda lousy. The way China measures growth and sets GDP targets encourages investment in projects that will never be profitable enough to cover initial costs. Short-term GDP growth trumps long-term GDP growth. The Chinese government has long defied this economic logic. Since many of its investments aren’t profitable, the money to fund new economic activity comes instead via credit from state-run banks and, in the past, through shadow finance (loans made off bank balance sheets). It achieves this in part by controlling banks, though also through setting GDP targets that tell local government officials how much they must invest to earn promotions. (The 2019 target, by the way, is 6-6.5%, so it just barely made it last quarter.) In short their economic numbers tend to be a lot of smoke and mirrors. https://qz.com/1730848/good-news-chinas-gdp-growth-has-hit-a-30-year-low/ https://qz.com/1730848/good-news-chinas-gdp-growth-has-hit-a...