Credit Suisse: China has Become a Victim of its Own Success

by swisscham in Bank, Finance, Insurance

China’s “weight-gain” is the very thing that caused its slowdown, according to a note by Credit Suisse. The bank says the country became so big as a share of the world’s industrial output that it is “no longer possible to profitably outgrow non-Chinese demand by such margins.” China’s manufacturing profit margins have been falling since 2011, and there has been a decline in real-terms in manufacturing investment.

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