The world’s fastest-growing economy is slowing down – of that there can be little doubt. The question is whether other nations should be nervous or thankful.
The latest sign of an easing in China came in the purchasing managers’ index, a key gauge of manufacturing growth, which fell to 52 in May from 52.9 in April. The number remained above 50, signalling that the vast Chinese industrial sector was still expanding but at the slowest pace in nine months.
The danger is clear. With developed markets still struggling to shake off the effects of the global financial crisis, economies from Brazil to New Zealand have become increasingly reliant on China as a locomotive of growth.
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