Is China's Economic Miracle Over?

China’s economic model faces a structural crisis as its financial system, once a catalyst for growth, now constrains development through excessive, unproductive credit allocation. Logan Wright, partner at Rhodium Group and author of *Broken China*, argues that the massive post-2008 credit expansion fueled unsustainable property and infrastructure investment, leaving the state burdened by debt and limited fiscal options. Xi Jinping’s centralization of power has exacerbated these risks, replacing consensus-based policymaking with unpredictable political interventions that stifle private sector innovation and dampen consumer confidence. Despite the urgent need to rebalance toward household consumption and address demographic decline, current industrial policies continue to prioritize capital-intensive sectors. Ultimately, the persistence of these imbalances suggests that China’s long-term economic rise is no longer inevitable, necessitating a fundamental shift in fiscal strategy to avoid prolonged stagnation.