Am i reading this right ...., page-19

I was talking more about China being like Japan with two lost decades of deflation.  There is definite similarities, Japan kept their huge construction companies on life support and didnt let them collapse. At the end these Zombie companies burdened with massive debt couldnt invest and weigh down the Japanese economy.

After the GFC china stimulated their economy with debt fuel binge expenditure on infrastructure. The charge led by state own enterprises (SOE).  One SOE China state railway comporation has over US$800b. China gave up it last infrastructure stimulas program, early this year.  Clearly China growth fueled by debt stimulus is unsustainable and the bad loans piling up from massive misallocation of capital..  There can only one conclusion.. Deflation!

In terms of aging population it will take a long time to unwind from the one child policy. China will have the most aged polpulation by 2030.

http://www.ibtimes.com/chinas-one-c...ades-relieve-economic-pressures-aging-2161789