China's growth has already been dramatically slowed down in relation to high growth rates in pre crisis time. Its model of the growth based on exports and foreign investment is exhausted.
Also, a China s debt has exploded enormously by reaching about 260 percent of GDP.
China is not slowing down in the sense that one can imagine crisis in the near future.
Maybe you are right but as chines critics said it is a normal situation in case of China because whole world (developed economies) experiencing the same situation in recent years.
Chine growth story is not totally intact, it is slowing down considerably.. but world economy will be greatly by it because USA economy is recovering and other blocks are also improving slowly..Indian economy itself after a lot of reforms recovering very fast..
Chinese economic growth slows down from 10% to 6-7%. This is still much higher than the global average (3-4%). That is why I do not think that it will cause economic crisis. Besides that, we see that India has a rising growth rate. Yes, Chinese high debt is a potential danger, but only if China will enter an area of negative economic growth, and this is not likely to happen soon.
I think that more restrictions in trade and embargo are more dangerous for global economic stability. No link between dollar and any fundamental value (like gold or even energy equivalent) also makes global economy less stable.
If we look back at the crisis of 2008, we will see that not the slowdown of global growth was the cause of it, but bubbles in financial assets, including overvaluation of housing markets in the USA and other countries. After the start of this crisis economic values went down causing decline in GDP and recession in many countries.
You can read my thoughts about it in my working paper: Conference Paper About Origins of Financial Crisis 2008
I agree with Seniors, that Chinese economy is not slowing down comparatively.
The new direction of the Chinese economy follow a model of the transition from low to highly-specialized production. Well, an excessive production capacity has led Chinese companies to sell their products on the world market below the price and make profits. I am concerned that its model of the transition may be unsuccessful and failed in the comparison to U.S and Europe.
Dr. Joanna, explained the scenario well, Chinese economy is not slowing down much comparing to the developed countries, it is stays at the level of -6-7% per year which is still pretty high.
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