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Dilemmas of interest

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July 2004

"Bursting China's Bubble" screamed the headline. It could have been from the front page of the latest <i>Financial Times</i>, <i>Business Week</i> or <i>The Economist</i>, but it wasn't.

It was from an essay written in 1994 and published in an obscure academic foreign affairs journal. The last time China's economy faced a crisis it was hardly noticed by the rest of the world and only then in a narrow Asian context.

This time around, the overheating or bubble or whatever you want to call it (Premier Wen Jiabao and the People's Bank of China have used both terms) is bringing sleepless nights to many more than just the economic tsars in Beijing. From the trading ...

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