Beijing’s model is hitting roadblocks. It needs to move toward more home-grown spending – even if one-party politics makes that hardChina faces what the economist Albert Hirschman noted decades ago: explosive growth is unbalanced, and success embeds that unevenness into political, business and cultural institutions, making change tough. China now stands at this crossroads.The Asian giant’s economic growth, which previously relied on exports and a debt-driven construction boom, is facing headwinds: the disastrous crash from a real estate investment spree, big losses hitting the banks, and local governments facing a crippling debt crisis. With households highly indebted, China cannot just build more apartments to sell. Sustaining an export-led boom will become harder as anti-dumping measures and Donald Trump’s tariffs hit. All this when Chinese firms report plunging profits. Continue reading...