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Gary Shilling

Truth-Telling on China's Economy

It's shifting away from an unhealthy dependence on exports.
No need to panic.

No need to panic.

Photographer: Seong Joon Cho/Bloomberg

As the leaders of 17 countries gathered in the Philippines Wednesday for the annual Asia-Pacific Economic Cooperation forum, Chinese President Xi Jinping stated the obvious. "The Chinese economy is a concern for everyone," he said. "We will work hard to shift our growth from just expanding scale to improving its structure." 

What he means is that China's economic deceleration -- the official growth rate of 6.9 percent is a six-year low -- is the sign of an economy in transition. It's moving from an over-reliance on exports and government-led investment to an economy that is more consumer-led.