China’s growth story is “basically over,” and the country’s recent stock battering reflects “horrible” fundamentals, one economist said Monday. The biggest roadblock for the world’s second-largest economy is dependency on exports to the United States and Europe, which face growth problems of their own, said Peter Navarro, an economics professor at the University of California, Irvine.
“China is going to be in a slow growth mode and that’s going to continue until Europe and the United States recover,” he said in a CNBC “Power Lunch” interview.
The Shanghai Composite Index has shed more than 20 percent since June 12. The drop comes on the heels of a torrid run for the index and China’s central bank’s continuing efforts to boost a slowing economy.