Absence of U.S. Consumer Demand to Hurt Chinese Growth

China's growth is likely to be hurt by the lack of consumer demand from trading partners such as the U.S., warns the head of the world's biggest bond fund at Pacific Investment Management Co., says Bloomberg.


“The Chinese, I suspect, will have a bubble of their own to confront,” Bill Gross told Bloomberg Television. “It’s gearing up for export that doesn’t find an end consumer, that’s the real problem in China.”


According to Bloomberg, under what Pimco has termed the “new normal,” investors should be prepared for lower-than-average historical returns with heightened government regulation, lower consumption, slower growth and a shrinking global role for the U.S. economy.


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