Joshua:



China is more than 50%, cloaser to 60%, investment in the construction of its GDP. The domestic consumption is only mid 30% of its GDP. Its mutliplier has been declining, where a yuan of investment, likely no longer even returns a yuan of value. It is building, building, building and bloating assets, assets, assets. Its debt is rising quickly, far too quickly, and far too large for a country at its stage of development; with the grave domestic poverty that still exists. It, since 2003, has cycled ever greater amounts of its economy toward investment, as it has over-built, and amassed ever higher levels of over-capacity. Much of this is due, because while it attempts to use state led planning mechanisms, its control at the local level is quite limited, and promotion is based on growth, in addition to alterations in how local governments are financed, as china has tried to limit transfers to locales after it centralized tax intake (a component of governance in any advanced country) forcing local governments to be creative in financing and development. Problem is local banks are run by local party members who also are under party leadership. So what has been occuring, over-investment, over building, more capacity across a slew of industries than is needed, rising debt (250% of GDP, where countries that have been industrilaized for a hundred years are not growing at such percentages, and are only several tens of percentage points or a 100% more with social security systems, and longevity totax take in place). So your notions of ideology, or merely ideological assertions that have been commonly popular of decrying liberal economics, are frankly hogwash, and waning hogwash.



take a typical Chinese city, imagine that last year they built 25% more houses than the city had. That goes to GDP, plus it goes at all the input components and the sales prices. But no buyers, this is essentially what has been happening throughout the decade, but accelerated since the 2008 downturn and Chinese spending. Once again, while the system as such has enabled and encouraged the rise of china, it has been the party that has taken risky bets, since at least 2003, in not moving in the direction of greater domestic consumption as a component of GDP, and moving toward greater investment, where, as the economy is engineered to create the surplus and savings required for investment, under conditions of artificial asset bloat and money printing, led to their FOREX reserves. So, am not sure what you are talking about empowering small businesses and similar, while they did choose to raise incomes from 2010, this is not altering the construction or proportions of GDP, which cycle the economy, of their own choosing toward instability.



One last note, the top 50 members of the peoples congress have 57 billion in personal assets, and the top 50 memebers of the US congress have 1.5 billion in assets, this is illustrative, of the mechanisms that drive growth in the Chinese economy, so if reading 5 year plans, you would want to cycle back a few, and compare if plans have been implemented, or merely growth has evolved as I have just stated.