Advantage China : The fear of slowdown is overdone

China official growth numbers stands at 6.9 % with the fourth quarter growth at 6.8 % . This is in line with broad market expectations and should help the financial markets to recover .

China has also made it clear that they do not intend to start a currency war by devaluing their currency . They have enough room to support their currency .

The major concern on China has been their unpredictable nature of policy actions . However to give the Dragon it's due they are transiting from a controlled economy to a market driven economy  .
China being of the size it is the transition has to be slow , with two steps forward and one step backward .

China's  shift from a commodity driven economy to a service lead economy is also good for the World . We will have less pollution and consequently less global warming.

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