Sunday, January 17, 2010

Chinese Economy: Time to Expand or Explode?

Right now, it seems that the worst impact of global economic recession is over for Chinese economy and it can again come back to the path of recovery and regeneration. The Economist has a good analysis about it: China's economy Not just another fake. It compared with the current condition of China with that of Japan in 1980s. That time, Japanese economy fell into problem and then never really came back. According to this analysis of The Economist, Chinese economy is not in a bad condition and it will not get busted.
Robert Salomon at Seeking Alpha does not agree with this kind of analysis of The Economist and I would ask you to read his view on it: Is China a Bubble? Two Opposing Views.
What do you think about the whole thing?