Global Economy: China Malaise Makes the US Look Good

From China comes discouraging new language. Leaders described their faltering economy as showing a “wavy pattern” with “bumps during progress.” Put politely, the message is that the country won’t provide the lift for the global economy that was widely anticipated six months ago. It may even be a drag, a role to which Beijing and the world are unaccustomed. We should get used to it.

Who will the world rely on? The much-maligned US, often derided over the past decade as being in its sunset years relative to its economic challenger. A retreat in inflation is likely to mean that an anticipated interest-rate hike by the Federal Reserve on Wednesday will be the last for a while. When it comes to China, the debate is about how much growth will slow, whether the country will suffer from deflation and how much action is needed to turn things around — or, at least, prevent a further deterioration.