LONDON (Reuters) - China needs to learn lessons from Japan’s lost decade and control future levels of debt, the country’s former central bank governor said on Tuesday.
Debt levels in China are too high, but the Chinese government is taking steps to try to deleverage the economy, Zhou Xiaochuan said in a speech at Chatham House in London.
“Japan had very fast development and later then a so-called lost decade,” he said. “The Chinese economy may have a similar overleveraged problem and we need to absorb the knowledge and lessons from what happened.”
The lost decade refers to a period of economic stagnation in Japan that began in the 1990s.
Reporting by Tom Arnold; Editing by Frances Kerry