About 20 percent of China’s economy is shrinking and 80 percent is growing moderately, according to independent economist Andy Xie.
Xie told CNBC Asia’s “Squawk Box” on Friday that a credit bubble in China’s economy is deflating slowing, leading to weaker growth momentum.
“20 percent of China’s GDP is shrinking and 80 percent is still growing moderately,” Xie said.
China, the world’s number two economy, has not had a great start to the year. Economic data paints a picture of a slowing economy, with this week’s HSBC purchasing managers’ index showing manufacturing activity continuing to contract.