Stuttering Chinese economy causes jitters in the West

The Chinese economic miracle is in trouble but the jury is out as to whether a soft landing or a hard landing will ensue, writes Jeffery Frankel

With the Shanghai Stock Exchange Composite Index down more than 40% since last June, investors worldwide are watching the decline with growing concern.

However, not because they are invested in the plummeting market (China’s stocks are overwhelmingly held by Chinese). Rather, the fear is plunging equity prices mean that China’s economy is going down the tubes. However, those seeking compelling clues about China’s economic future should look elsewhere.