China's Slower Growth Consistent With Post-Industrial Era

China's Slower Growth Consistent With Post-Industrial Era by Dan Steinbock, DIfference Group

After intensive industrialization, growth deceleration is natural. No nation has enjoyed sustained double-digit growth after industrialization. The real test of resilience is the continued increase of Chinese living standards.

In 2015, China's economy grew by 6.9 percent. Internationally, the performance was portrayed as the "slowest in 25 years." Some argued that the slowdown reflected the eclipse of domestic demand. Others claimed it heralded China's "hard landing." And yet, the performance was within range of the government's official target of "about 7 percent."

What the deceleration signals is not China's demise, but the eclipse of Chinese industrialization.

Deceleration is normal

In the past, China enjoyed "double-digit growth." Today China's growth is...