Explain why "crowding out" in China has a very different meaning compared to the notion in the United States. Be specific about where crowding out is occurring-on the production side or the uses side, and which sectors (C, I, G or NX) are crowding out which other sectors.

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The Answer is In the US we think of increased govt. demand (use) crowding out investment demand (use) and consumption (use). In China, government encouraged investment and exports crowd out consumption. When SOE's produce consumer goods this tends to crowd out private production ( a production rather than uses form of crowding out ).

Explain Why "Crowding Out" in China Has a Very Different