Deals
China's Fear of Japan-Style Economic Bust Drives Crackdown on Deals, Says Source
- Study analyzed how to avoid repeating Japan’s bust in 1990s
- Recommendations included curbing China’s global buying spree
China's Slowdown Fears Said to Drive Deal Crackdown
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President Xi Jinping’s top economic adviser commissioned a study earlier this year to see how China could avoid the fate of Japan’s epic bust in the 1990s and decades of stagnation that followed.
The report covered a wide range of topics, from the Plaza Accord on currency to a real-estate bubble to demographics that made Japan the oldest population in Asia, according to a person familiar with the matter who has seen the report. While details are scarce, the person revealed one key recommendation that policy makers have since implemented: The need to curtail a global buying spree by some of the nation’s biggest private companies.