HMM: China’s economy is headed for a ‘dead-end,’ and Beijing won’t do anything to stop it, scholar says.

“Years of erratic and irresponsible policies, excessive Communist Party control and undelivered promises of reform have created a dead-end Chinese economy of weak domestic consumer demand and slowing growth,” she wrote. “The only way that China’s leaders can see to pull themselves out of this hole is to fall back on pumping out exports.”

The result will be more tension with China’s trade partners as cheap manufactured goods continue to flood markets, while the Chinese people will turn gloomier, causing the government to get more repressive, Stevenson-Yang predicted.

The root cause of China’s economic problems is the Communist Party’s excessive control, which isn’t going away, while its strategies that focus on adding more industrial capacity are counterproductive, she said.

Most economists have recommended that Chinese leaders loosen their grip on the private sector and promote more consumption, which would entail reforming the government—” and that is unacceptable,” she added.

MEANWHILE IN SHANGHAI: China: Old And Busted: 1 Bed, 1 Bath. The New Hotness: 1 Bed In Bathroom.

FLASHBACK (From Ed) to November of 2019: How to Conduct Business with Chinese Companies That See a Dark Future.