Electricity production in China, a key indicator of economic growth, points to zero growth, author Gordon Chang told CNBC on Wednesday.
"By far the most reliable indicator of Chinese economic activity is the production of electricity. When you look at the April-through-July period, electricity production increased by less than an average of 1.2 percent," he said on "Fast Money." (Read more below video.)
'Wheels Coming Off Chinese Economy': Gordon ChangElectricity production, a key indicator of economic growth, points to zero growth, says Gordon Chang, author of "The Coming Collapse of China."
"And because the growth of electricity historically outpaces the growth of the economy, it means the economy can't be growing more than zero," he added.
"If you look at the manufacturing surveys, the price indices, they suggest zero growth, as do the mountains of copper in the car parks and the iron ore in the graineries."
Chang, author of "The Coming Collapse of China," said other headwinds, such as an anti-reform government, will also hurt its economy.
"After 35 years of growth, the wheels are coming off the Chinese economy," he said.More From CNBC