Let us be careful about our analysis of China's comparative advantage and the withering of the same (purportedly by re-shoring happening in U.S. and the resurgence of energy investments post 'Fracking' success in shale gas); Michael Porter made the same mistake in his 700 page book, “Competitive Advantage of Nations” when he forgot to mention the word ‘China’ in the whole book and we all know what has happened after that. With such a large squeeze in its current account, China is still able to deliver a near 8% growth rate, thanks to its consumption factors and the base is relatively strong to capitalize on the future dividends from it. With fixed asset growth at 20% Year on Year and with 10% industrial growth in November, we still have quite a lot of ammunition. What is only puzzling is the stock market performance, but that is another matter.

