In the downturn, China’s economy has diverged along two tracks, with the industries that powered it for so long getting hit harder while services and household consumption power ahead. Service industries last year managed to absorb job losses from manufacturing.
The trend to greater reliance on consumption rather than investment and industry is one the government has long said it wants to encourage...
“The real challenge is how you reduce the size of nonperforming industry without a real sharp deterioration in the labor market,” said Société Générale CIB economist Klaus Baader. “That’s the real trick.”
--The Wall Street Journal on Jan 19