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Rekindling China's animal spirits

The onus of sustaining GDP growth at the government's 6-7% range will rest on public-sector investment. By Chi Lo

CHINA'S gross fixed capital formation has been falling since 2010, driven mainly by a steady decline in private investment (Chart 1). Credit-fuelled public infrastructure spending has replaced private investment (Chart 2) to keep GDP growth from falling significantly below 7 per cent since the...

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