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A man talks on a mobile phone inside his tricycle cart loaded with goods near under-construction residential buildings in Changsha, in China's Hunan province Monday, Jan. 20, 2014.
A man talks on a mobile phone inside his tricycle cart loaded with goods near under-construction residential buildings in Changsha, in China's Hunan province Monday, Jan. 20, 2014.
(Andy Wong/AP)

Why China’s addiction to easy money is spooking markets

China’s economic data highlights the inevitable effects of the country’s long-term addiction to easy money – the steady dissolution of its economic growth model.

The HSBC/Markit Flash PMI Manufacturing survey was released Thursday at 49.6, below economist estimates of 50.3. More importantly, the sub-50 reading also indicates an actual contraction in Chinese manufacturing activity.