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William Pesek

It's Time to Give China Some Time

Investors need to stop obsessing over every zig and zag in China's growth rate as if it were a big company that needs to impress us. 
Workers' wages are still rising.
Workers' wages are still rising.

Is China headed for a boom or bust? Depending on whom you read, the world's most populous nation is on the cusp of either a debt meltdown, or a middle-class expansion.

I've written before about the possibility of China suffering its own "Minsky moment" -- the point when a debt-driven speculative bubble comes to a sudden and nasty end. Yet there's also evidence the country may be approaching something of a Henry Ford moment, when a manufacturing-based economy matures to point where workers can afford to buy the products they're making. The reality, as unsatisfying as it may be to those looking for a dramatic headline, is probably somewhere in between.