China's Middle Income Trap an Excuse to Cover Up Failed Central Planning

Sun Hao argues the growth of SOEs and government intervention are the main reason for China's slowing economy.

The biggest shiv:
Not eliminating defects at the institutional level, we may not fall into the middle-income trap like other countries, instead we may fall into the trap of failed states. The Northeast has seen economic growth collapse, all over the country there are also quite a number of collapse points.
Today, these large state-owned enterprises in the industry if you look at the debt structure they already went bankrupt, but they were sheltered by the government, like a dead person in the intensive care unit receiving excessive medical aid enduring as zombies. From borrowing new debt to pay old debt, not borrowing to pay interest, to swapping debt for equity, in their own slow death will absorbed all of the people's bank deposits. Could it be the next step is TARP-like recapitalization to boost bank capital? A few years ago I said if the reform doesn't happen, in seven or eight years time this will happen again.
He also slams SASAC as a reversal of reforms:
SASAC was established in 2003 (the establishment of a government agency using the taxpayers' money to set up a public agency as public service for some shareholders is of questionable legitimacy), this system can be regarded as a reversal.

中等收入陷阱只是挡箭牌 中国经济真正要害是什么?

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