5 Reasons Why China’s Economy is Not Overheated

China's economy is not overheated says a UBS senior analyst on global emerging markets.

1. worries about domestic over-investment are unwarranted

2. current high consumer price index (CPI) is due to temporary supply-related spikes

3. double digit growth of 11% or higher will continue despite a 0.6% drop in 2008.

4. bouyant margins in most industrial and service sectors  – profits are up over last year.

5. the country is "insulated from even the most aggressive export shocks" including a potential recession in the U.S. economy.

I think I remember reading something about a thief coming when they are least expected.

Can China really call itself 'insulated?' 

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