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The Chinese economy has grown at an average annual rate of about 10 percent over the last twenty years. By contrast, the US economy has grown at an average annual rate of about 3 percent over this same period. This has made observers wonder as to why China is growing so quickly.
One commentator suggested he knew the reason for China's success, writing:
"On my visits to China I noticed the finished apartments were so poorly made that they will need to be replaced in less than 15-20 years. This is the secret to their economy. The entire infrastructure will need replacing all the time and that keeps a billion people with jobs."
Is the commentator right? Comment from an economic perspective.
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