Is China Running Out of Options?

http://blogs.ft.com/the-a-list/2012/05/23/is-china-running-out-of-options/#axzz1vhWrc2ur

Yukon Huang

May 23, 2012

China’s economy seems to be going gradually downhill but with the dips particularly steep at times. When Premier Wen Jiabao announced in March that the growth target would be 7.5 per cent this year, no one took him too seriously since outcomes have always been significantly higher. Beijing was comfortable with growth moderating to around 8.5 per cent for this year compared with last year’s 9.2 per cent but prolonged uncertainties in the eurozone combined with the continuing lid on housing purchases now suggest that a soft landing may be more difficult to realise.