Chinese resurgence is set to arrive with enormous scale and speed

Pre credit crunch, the Chinese economy had been expanding at a tremendous rate; China's GDP growth in the mid-teens combined with booming housing and stock markets clearly signalled a case of overheating.

Refreshingly, the government was aware of this and proactively tried to slow growth. Unfortunately those intentions coincided with the collapse of the external environment – and a global financial crisis – resulting in a severe contraction in demand that has left exporters in the Asian region struggling. Realisation that the financial crisis sweeping the globe would impact Asia both directly and indirectly led to the Chinese government changing tack in record time. Within a matter of weeks China’s economic policies had turned aggressively expansionary.  Reserve requirements at t...