By Michael Pettis
This matters for China for at least two reasons. First, a worsening Europe will make it harder than ever for China to rebalance growth away from investment, and second, China itself is experiencing capital flight.
About The Author - Michael Pettis is a Senior Associate at the Carnegie Endowment for International Peace and a finance professor at Peking University. He received an MBA in Finance, and an MIA in Development Economics, both from Columbia University. Michael is also the author of The Volatility Machine, and maintains a blog at china financial markets. (EconMatters author archive here)
The views and opinions expressed herein are the author's own, and do not necessarily reflect those of EconMatters.
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