Chinese economy robust for next decade

After more than 30 years of extraordinary growth, the Chinese economy is shifting onto a more conventional development path - and a difficult rebalancing is underway, affecting nearly every aspect of the economy.

For starters, China's current account surplus has shrunk from its 2007 peak of 10 percent of GDP to just over 2 percent last year - its lowest level in nine years. In the third quarter of 2014, China's external surplus stood at $81.5 billion and its capital and financial account deficits amounted to $81.6 billion, reflecting a more stable balance of payments.

This shift can partly be explained by the fact that, over the last two years, developed countries have been pursuing re-industrialization to boost their trade competitiveness. In the United States, for example, manufacturing grew at an annual rate of 4.3 percent, on average, in 2011-2012, and growth in durable-goods manufacturing reached 8 percent - having risen from 4.1 percent and 5.7 percent, respectively, in 2002 and 2007. Indeed, the US' manufacturing industry has helped to drive its macroeconomic recovery.