Heightening chance China now faces the prospect of a Japanese-style lost economic decade

I’m just reading through a piece from the American Enterprise Institute, a center-right/right-wing think tank based in Washington, D.C., that researches government, politics, economics, etc.

Its titled Gathering Clouds over the Chinese Economy (link is to the piece).

Not everyone is going to like it. Especially China. But, it’s a good summary of where we are at.

• Troubles are coming to the Chinese economy … now casting a dark cloud over the economic growth prospects for the world’s second largest economy and until recently the world’s main engine of economic growth.

AEI does add, on a brighter note:

• On the positive side, China’s economic woes could provide much needed inflation relief to the world economy especially in the form of lower international commodity prices in general and oil prices in particular.

I have to say, I’m not sure China throwing itself under the bus really has a bright side but I guess lower inflation will be helpful.

This article was written by Eamonn Sheridan at www.forexlive.com.