China is once again staring down the biggest Catch-22 in its economy

Reuters China's economy has started to slow dramatically, even before US tariffs have had a chance to make an impact. The government is scrambling to boost growth and walking back some of the measures it took to rein in debt and credit creation. This means it is once again encouraging infrastructure investment — one of the biggest drivers of China's debt bubble in the first place. Beijing knows this is risky, and an analyst at Societe Generale says that by 2019 it could lead to the full return...