China May Face Japan-Like Slump Unless Yuan Weakens, KKR Says

  • KKR sees currency's `fair value' at about 7 per U.S. dollar
  • Yuan weakness is needed to alleviate debt burden, deflation

China could be facing the same kind of anemic growth that Japan did in the 1990s unless it moves to weaken the yuan to alleviate the country’s debt burden and fend off deflation, according to KKR & Co., one of the world’s largest private equity firms.

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