China’s main export markets are slowing. The country’s manufacturers have seen their order books starting to shrink. Things have not seemed this dire since late 2008. Don’t fear, say the ebullient crowd of China-watchers. Beijing is prepared for the worst. After all, its last stimulus programme – launched almost exactly three years ago – helped pull the global economy out of recession. The legacy of China’s recent credit boom, however, will make it difficult for Beijing to repeat its past success.
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