Financial Times FT.com

Beijing risks passing on a poisoned chalice

By Richard McGregor in Beijing

Published: August 9 2009 17:11 | Last updated: August 9 2009 17:11

This year, just as it did a decade ago during the Asian financial crisis, Beijing has managed to pull the Chinese economy out of a ditch with a massive fiscal and monetary stimulus.

After 30 years of market reforms, the Chinese economic cycle still is not moved by entrepreneurial spark or the cutting and raising of interest rates. The wheels only really spin when the central government unleashes a fiscal flood.

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