The Dig: China Boom w/ Ho-fung Hung
Jacobin Radio
00:00
Excess Capacity in the State Sector
The export sector created a commensurate expansion of liquidity in local currency that became the local currency longs. This turned out to be the state bank longs to local government and stay enterprise, he says. After they get the longs, they need to use them for constructing more stuff, including high-speed rail system. The real estate machine is actually connected to the local government revenue machine, according to Li.
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