This year things are pointing to a landing back to reality. The latest data indicates that the Chinese economy is slowing for the 7th quarter in a row (the Chinese manufacturing contracting for 11 straight quarters), the foreign investment and imports are slowing down, and exports too. For the first time since the late 90s the GDP growth is expected to drop below 8%. In a world that's increasingly dependent on China's well-being, where the US is still hobbling shyly out of the crisis and Europe is going from bad to worse, that's bad news for everybody.
Actually I'd posit that China's capabilities are still being overestimated. Although it's the 2nd economy in the world, it's still largely a developing country. Granted, China may still be one of the few places where consumption continues growing instead of shrinking. But meanwhile a huge part of the population continues to live in underdeveloped regions, and though the internal consumption is growing fast, it's far from being sufficient to become the engine of world growth.
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