The bubble has burst: On the road to a lost Chinese economic decade

Anyone doubting that China is well on its way to a Japanese-style lost economic decade has not been paying attention to the bursting of its massive housing and credit market bubble. Nor have they been watching the souring of U.S. and European trade relations with that country. And if China, the world's second largest economy, were to fall, it would constitute a major headwind for the world economic recovery. The seeds of China's current economic malaise were sown over the past 15 years by the pursuit of highly unbalanced economic policies. Overemphasis on investment as the means of driving economic…