A number of indicators are pointing to the possibility of a major recession in China, one of the world’s largest economies. While manufacturing is still booming, for instance, it is doing so at a high cost to dealers and retailers, who are resorting to extreme measures to make sales. While state banks have been able to prop up industries so far, it may be creating an unsustainable credit bubble. Household saving has also gone up dramatically, another sign of a weakening economy.
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