From MSN Money:
Even if I’m right about China suffering a major economic break in 2009, I don’t think that will end, by any means, the country’s extraordinary drive toward global economic power. Economic train wrecks of the sort I describe here are the normal growing pains of any rapidly developing economy.
However, history argues that it’s unreasonable to expect that China will make the transition from undeveloped to developing to developed economy without the periodic wrecks that characterize the history of all of the world’s current developed economies — including the United States.
The Chinese economy with its still-changing mix of Communist top-down command and capitalist bottom-up market economies is, of course, very different from the Wild West capitalism of the 19th century in the United States. Still, I think that history can help pinpoint five trouble spots in any breakdown in Chinese growth. [Full text]
On a related topic, see also Jubak’s previous column, “China’s economy is out of control,” and “Fruit of the boom threatens to push China’s economy out of control” from The Guardian.
