China Policymakers Need To Bite The Bullet On Economic Reform: SocGen

“Policymakers will soon have to decide how much short-term slowdown they are willing to tolerate in exchange for a more efficient economic system, in which 100% implicit state guarantees are shattered and so creative destruction becomes possible,” says a recent Economics research note on China from SocGen. China GDP growth stifled by slow credit growth SocGen forecasts that Chinese GDP would grow by only 6.9% during 2014, mainly due to a marked slowdown in credit growth in evidence since June 2013. That month, the People’s Bank of China (PBOC) embarked upon a drive to curb flows of credit into China’s…