The future of China’s export monster thus depends on whether China’s high investment rate is sustainable. Many think it is not. Economists like Paul Krugman, a professor at Princeton University and a commentator for the New York Times, have gone from bashing China for its underpriced currency to fretting about its overpriced property. Its spectacular building boom has diverted China’s energies inwards, sucking in imports and displacing exports. It has thus eased the world’s fear of China. But it has raised fears for China.
via Exports: The retreat of the monster surplus | The Economist.