The Chinese economy, which grew rapidly with the help of the government's fiscal spending, has started showing signs of aging with its major industrial segments stagnating, real estate values falling and local governments accumulating huge debts.
In this situation, the government of President Xi Jinping regards the slowing economic growth as a "new norm" and does not plan to take any excessive stimulus measures. Unlike Japan, which experienced its economy moving from rapid growth to a steady maturity and finally to slow growth, the economy of China is jumping straight into a period of fast aging, which is even riskier than a hard landing.
An unofficial topic hotly discussed during the summit meeting of the Asia-Pacific Economic Cooperation (APEC) forum in Beijing in November was creation of the Asia Infrastructure Investment Bank (AIIB) with China taking the initiative with a view to providing funds for railway, road, airport and seaport construction and other infrastructure projects throughout Asia.