If, in fact, China is growing at the reported 7% target rate, it certainly is not evident in these charts.

Things which are produced have to be moved to market. The first chart shows Chinese Rail Freight Volumes (% year/year).

2015.11.02.ChinasThreat

The second chart shows the Volume of Freight per Kilometre Travelled.

2015.11.02.ChinasThreat2

Rail freight in China is falling at the fastest rate (year/year) in over twenty-five years.

This certainly does not look like an economy hitting its targets and running at an enviable (even within emerging markets) 7% growth rate.

It looks like an economy that has slowed alarmingly since the second half of 2014. In fact, it looks like an economy going off the rails (excuse the pun).

 

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