Is China a ‘paper dragon’?

Utter the word “China” in Indiana, and as often as not resentment emerges over “jobs sent overseas.”

But is China really such a powerhouse? It certainly has absorbed a lot of manufacturing jobs, but some experts are
beginning to think more skeptically.

Stephen Roach, who chairs Morgan Stanley Asia, has a book out saying China
and the broader region won’t continue its torrid growth unless the nations learn to rely less on exports and prod their
consumers to open their pocketbooks wider.

Other experts have cautioned that the Chinese have learned to manufacture
but still haven’t gotten the hang of creating things, a key pillar for supporting strong, sustainable growth.

Yet another critic, billionaire Jim Chanos, is looking to make a fresh gob of money betting against China. The investment
banker thinks the country is way overbuilt with malls and roads, and headed for its own version of a Great Recession. Read
Politico’s story here.

If the naysayers are right, how do you think it would affect Indiana?