Economy

Here's an analysis of the Chinese economy.

"DeWeaver: In the 1980s and early 90s, high growth rates were primarily the result of economic liberalization. Since the late 90s, however, Beijing has had to rely increasingly on state-led investment to prop up GDP growth. By now, the efficiency of this investment has declined to the point where it is no longer possible for the economy to grow at double-digit rates. China has reached the limits of investment-led growth, but will be unable to transition to a productivity-led model as long as the economy continues to be dominated by the state. "

On the skyscraper index.

"Mises Institute: In terms of predictions, China has nearly completed its tallest skyscraper. Do you feel that this will result in a correct “signal” of the Skyscraper Curse and “cause” an economic crisis in China?
DeWeaver: Yes, I think the crisis is already here. China is not only home to the world’s tallest building but also to 87 percent of all buildings over 152 meters now under construction worldwide. This skyscraper craze is but one example of the massive misallocation of resources that has resulted from indiscriminate investment promotion by local governments.
Mises Institute: We have also read that they have broken ground for a project to build the world’s tallest skyscraper and that they will complete it in record time. This would result in a world economic crisis signal. What have you heard about this and do you think they will complete the project?
DeWeaver: This project, known as Sky City, was halted a few days after the groundbreaking because the developer had failed to get the necessary government approvals. While the local government no doubt supports it, I think the central government is unlikely to allow it to go ahead. Beijing’s view is evident from a recent editorial in the People’s Daily, which called Sky City “impractical” and “irresponsible” and even cited [Andrew] Lawrence’s finding that record-breaking skyscrapers are often harbingers of economic crises."

Not good.