China’s Slow Road

NOTTINGHAM – As the eurozone crisis deepens, investors worldwide are sifting through the semantics of China’s economic-policy pronouncements with increasing desperation. They seek signs of an economic “miracle”: a rerun of the RMB4 trillion ($628 billion) stimulus of 2008 that maintained impressive Chinese growth as the West slipped into recession – and shielded the global economy from a worse collapse.

But rolling out another investment program on such a scale would be financial suicide for China. Investors worldwide must face an uncomfortable reality: China’s economy is slowing, and will likely continue to do so.