** Recovery has been driven by investment, but perhaps as much as 30-40% of it went into real estate and stock speculations. There is a bubble that must be contained, if it bursts, the whole Asian and world recovery will burst along with it. But because of China's cumbersome bureaucracy, it is hard to hit the brakes smoothly. If the government hits them, it could come to a sudden dangerous halt. If it tries to move slowly, the bubble could grow even bigger.
** These snags were not important a decade ago, but now that China is a world leader, these are major problems for everybody. As such, the recovery is uncertain and weak. There might be new, bigger problems down the road, while the US and Europe are still deep in trouble. As Asia Times Online contributor David P Goldman said in his blog, "The June personal income data were dreadful. I simply don't believe in the recovery story." This may be true not only for America, but also for the rest of the world. http://www.atimes.com/atimes/China/KH20Ad01.html
