It seems China's economic outlook at last has stopped keeping investors up at night. For the last 18 months or so, experts have worried about China's prospects. Pointing to the economy's slow growth and its bursting real estate bubble, they have fretted over economic collapse, the possibility of a "hard landing," and the potential repercussions for the global economy and its financial markets.

Deeper analyses and real-world probabilities always suggested that such fears were overblown, but they have persisted nonetheless. Now recent data emerging from Beijing offers still more reason for investors to set aside their worst fears about China. Its economy, of course, will not recapture the astronomical growth rates of some years ago. But still, it looks quite capable of sustaining real growth in the range of 7.5% to 8.5% a year. Considering that this rate of expansion is more than four times the pace expected for the United States, it should provide considerable opportunity in Chinese investments, both directly and through equity purchases.

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