Unless those distortions are removed by ending financial repression and allowing a greater scope for private markets, Chinawillface increasing disharmony.
The situation is sufficiently dire that a substantial possibility exists that Chinawillface the need for a formal or informal debt rescheduling within the next several years.
And with China unable to rely on the U.S. to consume the gap between China's own consumption and its output, Chinawillface GDP growth that is likely to be rigidly limited by the growth in domestic consumption.