Why China is putting the brakes on export-driven growth

Growth in China is going to slow. After the country posted 11.9% growth in the GDP for the first quarter of this year compared to last, there’s really no other option. For one, the sovereign debt scare in Europe, which has eroded the purchasing power of China’s largest export market, will be a big knock on the economy. The Chinese government has even set their full year growth estimate iat 9.1%, explicitly implying a slow down is coming. And, with the Shanghai Composite down 26.5% year to date, Chinese equity prices confirm this.