I still don´t understand why so many investors believe China will implode. The economy has decidely grown like a marching band for decades while economic managers kept doing the right thing to fly the balance of inflation vs growth.  Their industrial policy and “hybrid company model” has been blatantly successful. Bloomberg reported this morning, “The worst of China’s economic slowdown has passed and inflation won’t worsen,” Wei Li, economist at Standard Chartered Bank (China) Ltd., said in an interview in Shanghai.Industrial output will slow to about 10 percent in the second half, Xin said. Real-estate curbs and a higher base for comparisons will also contribute to smaller output gains.  The nation’s economy, the world’s second biggest after overtaking Japan in the second quarter, is still growing steadily and isn’t at risk of a “second dip,” Xin told reporters.

I read both sides of every argument I can find and there are some pretty deep thinkers whom are questioning the sustainability of the Chinese growth model.  Perhaps the believers in China´s long term growth prospects are wrong, but it would be of character for the Chinese economy if they were.  Is it practical to bet against proven winners with strong national-sector-company balance sheets?