It’s too soon to breathe easy on China’s economy

IS CHINA’S economic revival on track? A run of disappointing numbers suggests that additional stimulus may be needed – if officials can rally themselves to the task.

Optimism about growth, which was widespread in the opening months of the year, is diminishing. China is hemmed in by a two-speed economy, one in which exports excel while domestic drivers wilt.

This is the model, tied to global demand rather than local conditions, that Beijing was once keen to move away from. Unfortunately, it has a strong grip.