by Jan Goller
China’s current economic situation seems to be a bit strange at a first glance: While its economy is growing more slowly than the years before and the debts are rising, the Chinese government invests money into local infrastructure. Experts from the global rating agency S&P predict China to face this year a faustian choice between growth or debt reduction. Planned stimulus to boost output and business sentiment in China could undermine the country’s deleveraging push. This leaves policymakers with a tough choice between missing targets on growth or on reducing financial risks.