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Fueled by three decades of economic reform, years of double-digit growth and its undisputed position as the world’s factory, China’s remarkable rise is one of the greatest accomplishments in economic history.

…This is a huge opportunity for Japanese companies, Takashi Shiono, an economist at Credit Suisse told Blair.

That said, the deeper story here may be not Chinese economic strength, but rather, its weakness. And that’s where our tale potentially turns dark.

That’s because there is no guarantee that China’s current economic model is sustainable. China grew so quickly over the past three decades by throwing masses of relatively cheap labor into thousands of coastal factories, driving GDP higher and boosting the living standards of millions of formerly rural and migrant workers.

But the model is showing some strain. For one, factory workers across China have grown increasingly uneasy. Demands for higher wages and better working conditions sparked significant labor unrest earlier this year, with disputes hitting a number of high profile factories, including Honda and Apple supplier Foxconn.

And let’s not forget that, for all the excitement, China remains a very poor country. Its GDP per capita is about…

See more here:
China’s Economy Tops Japan: Are You Worried?

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