China, with a stagnant economy burdened with debt and overcapacity, and slow future growth, is likely to repeat Japan's the past two decades, negatively affecting the US economy and encouraging global currency depreciation, according to economists at a Senate Banking Committee hearing. Furthermore, the country is unlikely to become a market-orientated economy since the ruling Communist Party will not be able to transform the economy without social unrest and loss of control.
China, with a stagnant economy burdened with debt and overcapacity, and slow future growth, is likely to repeat Japan's two lost decades, negatively affecting the US economy and encouraging global currency depreciation, according to economists at a Senate Banking Committee hearing. Furthermore, the country is unlikely to become a market-orientated economy since the ruling Communist Party will not be able to transform the economy without social unrest and loss of control.