China's `New Normal' Growth Model Is Starting to Get Expensive Enda Curran
September 10, 2015 — 12:01 PM EDT
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People walk past buildings in the central business district in Beijing on Sept. 9, 2015. Photographer: Greg Baker/AFP/Getty Images)
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When Premier Li Keqiang took the stage Thursday at the World Economic Forum’s “Summer Davos” meeting in Dalian, he told business leaders that although China faces challenges, growth is on track and fundamentals remain sound.
The upbeat message is all part of a ‘New Normal’ narrative from China’s leadership as the economy transitions from relying on heavy industry and debt to one driven by consumption and services. What Li didn’t mention was the spiraling bill associated with keeping the economy on course to hit the Communist Party’s growth target of about 7 percent for this year.
From building bridges and highways to shoring up the nation’s currency and stock markets, China is rolling out hundreds of billions of dollars in its biggest stimulus since the package that followed the 2008 global financial crisis. More spending is coming, with the finance ministry