UK Only Article:
Reform in China
A slowing economy commands headlines, but the real story is reform
WITH China, the received wisdom belongs to the pessimists. Figures this week revealed that growth has slowed sharply and deflation set in, as the economy is weighed down by a property slump and factory production is at its weakest since the dark days of the global financial crisis. In the first three months of 2015, GDP grew at “only” 7% year-on-year. Growth for 2015 will probably be the weakest in 25 years.
Fears are rising that, after three soaring decades, China is about to crash. That would be a disaster. China is the world’s second-largest economy and Asia’s pre-eminent rising power. Fortunately, the pessimists are missing something. China is not only more economically robust than they allow, it is also putting itself through a quiet—and welcome—financial revolution.
The robustness rests on several pillars. Most of China’s debts are domestic, and the government still has enough sway to stop debtors and …<div class="og_rss_groups"></div>
via Economic Crisis http://ift.tt/1DLLVLw