ABSTRACT
Measured by purchasing power, China's GDP surpassed that of the US in late 20141. This signal event, occurring years earlier than many had predicted, presaged the beginning of the Pacific Century. US and China account for fully one-third of the global economy. Miles Yourman of Knightsbridge Asset Management stated that, despite the official 7 percent growth forecast of the notoriously opaque government, real growth was likely only 34 percent for 2015. Wholesale foreign direct investment (FDI) is no longer welcomed, but only in those industries that China cannot do well enough itself. Socialism with Chinese char acteristics, as Deng Xiaoping called it, may seem initially more capitalistic than socialistic. In June 2015, Chinese stock markets, which had reached lofty price levels, began a rapid decline, prompted in part by uncertainty in the ability of the economy to achieve even the official 7 percent growth prediction.
