Chinese economy has ‘darker story’ ahead, China Beige Book says

BEIJING (Sept 27): The world’s second-largest economy may be faring well this year but 2018 is shaping up to be less positive, with progress on reducing debt and industrial capacity proving elusive, according to the China Beige Book.

Although this year still looks “far better” than the past two years, faltering demand signaled by a reversal of the five-quarter commodity rally may be in store for 2018, according to the private survey released Wednesday by CBB International, which collects anecdotal accounts from more than 3,000 firms in a format similar to the Federal Reserve Beige Book.

President Xi Jinping has been overseeing a reassertion of control over the economy and financial system this year, in the lead-up to the twice-a-decade Communist Party leadership gathering scheduled to convene next month in Beijing. With some track record in calling pivot points, the Beige Book report said its survey evidence rebuts some of the key perceptions about the economy’s progress.

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