Opposed Systems Design

…there is a deepening anxiety over the fact that China’s 30-year economic boom is reaching a climax and that its imbalances cannot be corrected quickly enough to avert a major dislocation. Foreign markets are drying up, domestic consumption remains too underdeveloped to pick up the slack and the misallocation of resources associated with the state-dominated financial system has generated a hidden mass of bad loans, exacerbated by the recent lending spree.

They assess that Chinese leadership is focused on managing the next two years (leading up to a leadership transition), rather than pursuing any major reforms that would address the structural challenges.