For the first time since 2008, economic alarm bells are ringing in China. Hard on the heels of a two-month stock market rout, the Chinese yuan lost nearly five percent of its value in just two days. The stock market might have rebounded, but the economy is still in trouble. Three and a half decades of easy profits from one-way bets on China’s reintegration with the outside world have come to an end. China is now part and parcel of the global economy, and the normal laws of economic gravity apply in China, too. The first of those laws is that there’s no such thing as a free lunch.
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