Christopher Balding, Columnist

Why China Is So Confident

Life is getting better. It's a good time for reform.

Good times.

Photographer: Wang Zhao/AFP
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If you only read the headlines -- or, say, my columns -- you might be pessimistic about China's economy. Recent news has been dominated by a crackdown on capital outflows, worries about rapid debt growth, and efforts to rein in a risky overseas investment binge.

Yet ordinary Chinese are highly optimistic: The China Consumer Confidence Index hit 114.6 in July, a level not seen since 1996. This is a logical reaction to some significant improvements in China's economic outlook. And for the government, it offers a key opportunity for reform.