Growing fears of a hard landing for China's economy

A severe slowdown in industrial production will not seriously affect China's GDP growth for 2011, says Morgan Stanley, but the rapid turnaround has caused others to worry about a hard landing.

Growing fears of a hard landing for China's economy

China controls its economy like a heater it turns it up and down. After two years of cooling, Chinese policymakers are turning up the heater again.

But before the stimulus measures actually kick in, China’s economic growth may dip below policymakers’ comfort zone. An investment-driven rebound is expected in the third and fourth quarters this year, when monetary easing gradually trickles through the economy, according to Morgan Stanley.

China recorded relatively...

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