The Growing Economic Crisis In China

China’s Growing Economic Crisis -- William Pesek, Bloomberg

Policy makers around the world have long envied China’s ability to get big things done. A huge 4 trillion-yuan ($630 billion) stimulus plan as the global economy cratered in 2008? No problem. Marshaling banks to lend trillions more? Check. Enacting sweeping regulatory changes at a moment’s notice? You bet.

Ahhh, the good old days. Now, a once-in-a-decade leadership shift is getting in the way of the stimulus-happy policies to which investors became accustomed. The nimbleness that helped China steer around the worst of the global crisis is confronting political paralysis of the kind more often seen in Japan, Europe and the U.S. The upshot is that China’s 7.6 percent growth rate may fall more in the next 12 months than anyone expects.

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Update: Everything You Think You Know About China Is Wrong -- Minxin Pei, Foreign Policy

My Comment: All good things come to an end one day .... and for China the signs have been there for the past year. Bottom line .... China needs export markets to grow, but with everyone now mired in deep debt and/or experiencing a recession .... exports are not happening. I still expect China to come out of this economic crisis stronger and more resilient than ever .... but they are going to have a bumpy ride.