China’s economy is starting to lose steam. That is the story of the moment. But China’s slowdown is a consequence of its past successes. It has achieved eye-catching economic growth, impressive wage growth and the creation of companies that are now regarded as global champions.
It should come as no surprise that China is undergoing changes.
After the second world war, Japan became the manufacturing hub of the world. I remember the early 1970s when Japanese cars started to flow into Europe and some people greeted them with scepticism. But a company like Toyota quickly became one of the most prominent global manufacturers.