Hedge fund manager James Chanos has been a long-time critic of what he claims is an unsustainable property bubble fueling China’s economy. According to Chanos, up to sixty percent of China’s Gross Domestic Product is based solely on construction and he warns that by late 2010, or early 2011, the bubble could burst.
China is “on a treadmill to hell,†said Chanos, who said in January the nation is Dubai times a thousand. “They can’t afford to get off this heroin of property development. It is the only thing keeping the economic growth numbers growing.â€Â
Source: Bloomberg
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