---
title: "SU-SOC175 FEB112026"
source: https://www.jemoka.com/posts/kbhsu_soc175_feb112026/
date: 2026-02-11
---

New Model China would need to shift to new growth model&hellip; Since 1980, it relied on:
mobilization on two mechanisms shift in control of resources to state to private There may be thus diminishing returns.
a new growth model China&rsquo;s capacity outstrips global demand incomes no longerr rising as rapidly foreign direct investment is slowing Expansion of credit China bank access accounts for a large percentage of global GDP; thus bad debt can accumulate and hurt. Banks is thus driving the infrastructure drive via credit. Credit growth comes up, GDP growdth comes down; bad state! Yet, almost 20% of enterprises are loosing money.
Credit is going increasingly to state owned enterprises: state sector is much less efficient in resource usage than private firms.
Declining Productivity total factor productivity growth is declining investment capacity far outstrips demand&mdash;requiring global demand to stay high infrastructure has low financial returns total credit extended to economy by banks over the past 30 years china has not built-up a welfare system&mdash;China redistributes less income than the US
