But apparently it is.
The Chinese Economy is doing very well, remember Taiwan was at 10% growth for about 40 straight years. I don't think China at 8% is that scary (ahem, though the country is about 30 times bigger by population.. not usually a great sign for GDP/capita)
Because I'm not living there, I can root for all the really great things that are happening there:
The Olympics in 2008 mean TONS of construction, and all the new infrastructure is investment based largely on that.
In Beijing, an airport terminal under construction will be bigger than all five terminals at London's Heathrow Airport combined. The capital will also add an estimated one billion square feet of high-end property by 2008, according to Jack Rodman, a partner at Ernst & Young in Beijing.
Cool. But let's not forget, China has been hauling ass to catch up to Hong Kong. Which means new laws bringing them closer to the, eh, 20th century. They're still stuck in A Tale of Two Cities, in terms of their working conditions, but be patient. It's called gradualism.
And what has the US been saying all this time? The US is sick of how.. er.. competitive CHina is, and would love it if their yuan was more expensive.
In other words, "please let the Yuan float because it will hurt you" Which China can now do. Yay!
Does it sound like they're freefalling in an Economic boom?
China has tried a variety of tactics to rein in the economy. Under pressure from the US, officials a year ago loosened the yuan's peg to the US dollar, and the Chinese currency has since appreciated about 3.8 per cent. The People's Bank of China has raised both interest rates and reserve requirements for banks, and last month ordered regional branches to halt "blind expansion and building of redundant, low value-added industries".
They call it gradualism.
At least they're not taking 'advice' from their competitors.