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China: Searching for a new equilibrium

China will stay on course and notch a moderated 6 per cent GDP growth as its economy evolves. But it will need to manage risks and overcome policy challenges.

China observers tend to either be die-hard sceptics or perma bulls. The sceptics think its economy will implode; the bulls expect the growth miracle to continue. The truth is probably somewhere in between.

W E find that most observers tend to fall into one of two camps on China: the die-hard sceptics and the perma-bulls.

The sceptics are convinced that nothing about China - from the data to the banking system to the demographics - bears close inspection. This school of thought argues that...