Zhou Xiaochuan, former governor of the People's Bank of China, said Tuesday that China needs to learn from Japan's "lost decade" to control future debt levels.
Zhou Xiaochuan said in London's Chatham House that China's debt level is too high, but the Chinese government is taking steps to de-leverage the economy.
He said that Japan once developed very fast, but then suffered the so-called lost decade. China's economy may also have a similar problem of over-indebtedness. We need to learn from history.
The lost decade refers to the period of economic stagnation that began in Japan in the 1990s.
