As has been been well documented, there are a lot of questions surrounding the Chinese economy. Its growth has not been up to the same levels as it has in years past. Specifically, manufacturing has slowed down. The target rate of growth for China is 7.5 percent and people are wondering if there will be government stimulus.
The government hasn’t come out and said they are passing a stimulus, but there has been a great increase in fiscal spending and investment. They have been very quiet about this and are not trying to insight panic. It will be interesting to see where this spending goes, and how it effects the economy.