Economic Decline In China

China is slowing down. Its growth has gone from 10 to 7.5 percent. While this doesn't seem like such a bad thing when compared with the United States steady 3 percent growth over the past thirty years, it may be the beginning of a steady decline in growth. China's growth could stop at 6 percent, 5 percent, 4 percent, or it could drop into a depression. Fareed Zakaria states that:

"China is slowing down, dramatically. If it continues, it will have a profound impact on the rest of the world. GDP growth has dropped from about 10 percent last year to 7.6 percent in the latest quarter. Now that might not sound like much, but it might just be the beginning: like a dropping ball, we don't know if it has hit bottom yet. What we do know is that it will have widespread effects." Read the rest of the article here.

What I view as the real problem is not going to be the economic problems for China or for the West. Whatever happens in China the rest of the world will adapt. China's economy will probably not fall through the floor.

The issue is political. What will happen when the government stops providing growth to the people? What happens when the corruption, the lack of representation, and lack of opportunities come down on the government's head?