China’s leaders will have to admit that for structural reasons, growth is going to be significantly weaker

China is now undergoing two major structural shocks: The skewing of its economy towards services, as traditional industry and construction contract. Productivity gains are lower in a service economy than in an industrial economy; Population ageing, as the decline in the working-age population gathers pace . Combining both factors, one arrives at the idea that China’s potential growth is going to head towards 4% - well below the symbolic 6% threshold.