What China's leaders can learn from US post-Civil War surge

Washington

CHINA'S shift from super-charged economic growth to a more moderate pace has drawn plenty of comparisons, most often with Japan, which lost its economic dynamism as its population aged, asset bubbles burst and export prowess faded. Some China perma-bears even predict a Soviet Union-style unravelling.

But there's another, less obvious historical model: late-19th century America. That's right, the United States of the post Civil War-era, a period of rapid economic transformation fuelled by massive investment, technological change and population migration to the cities. There were ups and downs, but over the sweep of history the US grew to become the world's biggest economy, a mantle China wants to capture in coming years.