China’s New Bridges: Rising High, but Buried in Debt
I&#x27;m honestly not sure what to think about China at this point because I&#x27;ve read so many news articles and reports from credible sources that paint seemingly contradictory pictures of the health of the Chinese economy.<p>Perhaps Quora would be a better venue for this, but I&#x27;m having a difficult time understanding what exactly may happen to the Chinese economy if all of the following are simultaneously true:<p>1. China has a trade surplus in its favor, on the order of ~40B&#x2F;mo<p>2. China has an exceptionally high savings rate, ~50%<p>3. China is in an incredible amount of debt<p>4. China is experiencing a massive outflow of capital by firms and individuals<p>I understand that macroeconomics is a very complicated and nuanced subject, but would greatly appreciate it if a HN reader could point me towards a comprehensive article or is willing to share their own analysis.<p>[1] <a href="http:&#x2F;&#x2F;www.marketwatch.com&#x2F;story&#x2F;china-trade-surplus-widens-as-momentum-slips-2017-05-08" rel="nofollow">http:&#x2F;&#x2F;www.marketwatch.com&#x2F;story&#x2F;china-trade-surplus-widens-...</a><p>[2] <a href="https:&#x2F;&#x2F;www.bloomberg.com&#x2F;news&#x2F;articles&#x2F;2015-05-01&#x2F;chinese-consumers-cling-to-saving-suppressing-spending" rel="nofollow">https:&#x2F;&#x2F;www.bloomberg.com&#x2F;news&#x2F;articles&#x2F;2015-05-01&#x2F;chinese-c...</a><p>[3] <a href="http:&#x2F;&#x2F;www.barrons.com&#x2F;articles&#x2F;why-chinas-debt-bomb-has-not-exploded-1491885214" rel="nofollow">http:&#x2F;&#x2F;www.barrons.com&#x2F;articles&#x2F;why-chinas-debt-bomb-has-not...</a><p>[4] <a href="http:&#x2F;&#x2F;www.telegraph.co.uk&#x2F;business&#x2F;2017&#x2F;02&#x2F;05&#x2F;asias-top-banks-warn-chinese-capital-flight-becoming-dangerous&#x2F;" rel="nofollow">http:&#x2F;&#x2F;www.telegraph.co.uk&#x2F;business&#x2F;2017&#x2F;02&#x2F;05&#x2F;asias-top-ban...</a>