In previous notes we have stressed how important supply-side rebalancing is for the success of China’s demand side revolution. Beijing’s longer-term intention is clear: it aims to proceed with supply-side reforms.
But what would happen to the labour market if Beijing went for a full blown, Austrian-style rebalancing of the supply side? What if they allowed failures to go under and ailing firms to restructure in a market-oriented way? How many jobs would be under threat from such a process? Click above to watch the full video or below for the full report.