China and Structural Reform

excessive reliance: China was in windmill mode, committed to structural reform no matter how difficult, according to The Japan Times. The new normal called for more moderate, consumer-led growth. When the wind of change blows, some build walls while others build windmills. The financial system would be modernized and the country aimed to shift away from its excessive reliance on debt-fueled, infrastructure-powered growth that had led to industrial overcapacity and an epic credit bubble. Roughly seven months later, China finds itself at the epicenter of a global stock market rout that has vaporized $8 trillion in wealth. Better still, the makeover would be pulled off smoothly: What I want to emphasize is that regional or systemic financial crisis will not happen in China, and the Chinese economy will not head for a hard landing, Li said. (news.financializer.com). As reported in the news.