Risk of China economic collapse overblown

Threat of overheating is exaggerated.

A growing number of economists and analysts have become alarmed that economic growth in China is severely overheated. This overheating has raised concerns that China is on the brink of economic collapse.

Concerns have been amplified by similar economic booms in Japan, Thailand, Korea and the U.S. that eventually went bust. While the mechanism driving China's current economic boom are certainly similar to the boom-driving mechanisms in these other countries, there is no similar parallel for China's eventual economic bust.

China's economy will continue to grow rapidly for the foreseeable future. The only significant investment risk in China is geopolitical in nature. Increasing geopolitical risk will periodically provide good opportunities to...

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