There’s an unusually cool breeze blowing from across the Pacific as spring gives way to an uneasy summer. China’s stringent government efforts to reign in an overheating economy marked a welcome pause in the hottest growth story of the century. The depths of the slowdown, however point to a less manageable set of problems after years of state-led economic development.
The next few months will reveal whether the central government can really turn the growth taps on and off at will. Quality now matters far more than quantity alone. Following through on much needed (and talked about) reforms to spur domestic consumption will create a more stable environment. Maintaining the status quo will not. Either way, China’s economy is changing and so is the world outside. (Excerpt from China-U.S. Focus. Full article here.)Graphics credit: China-U.S. Focus