Is China starting to rebalance at last?

China’s GDP growth rate between 2003 and 2007 was extraordinary. During this period, growth was just over 11.6% p.a. (according to the IMF): a five-year period only really matched in recent times by the 1992-1996 surge, when growth averaged 11.5%. Perhaps even more surprising has been how rapidly China has grown in the subsequent five years. Growth averaged 9.3% between 2008 and 2009 despite the financial crisis, beating the slowdown it experienced during the Asian crisis of 1997-2001, when an average of 8.3% was achieved. Growth at these levels inevitably sparks debate about whether ...