China's rapid growth continues

China's economy continues its extremely rapid expansion with 9.5% growth during the first half of this year, even after the Chinese government has moved to slow growth of credit. The quotas on Chinese textiles will probably slow down growth during the rest of the year, as would a yuan revaluation and/or further protectionist measures in the west if they occur ,but clearly the Chinese economy remains fundamentally strong, thanks to it large supply of cheap labor and its high savings rate, something which in turn is partially a result of its relative lack of a welfare state.