The World Bank released a China Economic Brief yesterday, and it's pretty explosive Due to weak domestic demand, China's housing prices will continue to decline, and GDP growth will keep slowing down. The World Bank says the weak domestic demand is because the government is spending recklessly The government spends 43% of its budget on investments, way higher than the 13.5% average in developed countries. Meanwhile, spending on public welfare is only 28%, far below the 60%+ level of its peers. And even that public welfare spending mostly goes to within the system