The jury is in on what ails China’s economy. It was only a matter of time. And the obvious solution – we are told – will be politically treacherous. The verdict is unanimous. China’s investment and export-led model has finally run its course. Not only that but the model had been taken to such extremes that the rebalancing must be brutal. Proof is everywhere. The property sector is on its knees. Infrastructure debt has paralyzed local governments. Exports have peaked and are declining. If only China could stop squeezing its long-suffering households, consumption could become an engine of if not growth then at least ... (full story)