So where does China’s much-maligned economy find itself today? We describe it as stabilizing, albeit at a much lower growth level than in times past.  Important indicators of the “smokestack” part of China’s economy, such as electricity usage and railway freight, have all shown signs of improvement recently, as has the Market Manufacturing PMI (a survey of manufacturers), which is now just back in expansion for the first time in roughly a year (see chart below). “New China” indicators, related to services sectors and the burgeoning middle class consumer, have remained solidly in expansionary territory, with areas like consumer confidence rebounding and home prices in Tier One cities making new highs.

David Fuller's view

This makes sense to me and the rest of this issue is well worth reading.

See also my comments on China posted on Tuesday. 

Here is The Weekly View.