China's Faustian Bargain: First of two Parts

China’s 135 percent corporate-debt-to-GDP ratio is the highest among the world’s major economies. Together with the country’s pro-cyclical fiscal structure and 30 percent overcapacity across the board in manufacturing, the country’s GDP could slow to below 4 percent as early as 2017, despite promises by the leadership to maintain a target of 7 percent.

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