The tug-of-war between China bulls and bears has sharply divided financial markets in recent years, with the debate adopting an ever more partisan tone as the country takes centre stage in the global economy. A vulnerable China, plagued by opaque local debt burdens and a real-estate bubble, is frequently pitted against the image of a self-confident superpower that is rapidly assuming the mantle of global economic leadership.
In recent months, the latter portrait has dominated, as the fiscal funk in the West shows no sign of abating, thus boosting perceptions of China’s relative economic strength. What is more, Beijing seems to be engineering a soft economic landing – for now.
