China: A Giant with an Achilles Heel?

Since the financial turmoil broke in Thailand in July 1997, triggering a financial crisis across South East Asia, China, the only major country isolated from the financial crisis in East Asia, has remained the bright spot of this area and its growth engine. While the financial crisis appears to be approaching its end, we cannot help but speculate whether China will still suffer from the after-effects of the financial crisis arising from the changed economic and policy environment which will exist in the South East Asian countries.