In the wake of the news that China’s economy grew 7.5% in Q2, Gordon Chang throws up the warning flags and argues that there exists a very real threat of a “Minsky moment” for China. Additionally, Chang states that the Chinese economy will more than likely continue to expand in the future, but this is not a positive sign.

Since the start of the global financial crisis and the emergence of regional trade alliances in the global economy, “a currency swap network” has emerged in financial and monetary fields.

As the Chinese government has given up its large-scale economic stimulus, China’s economy and demand will not grow rapidly, writes Ding Yifan.

In light of recent statistics regarding China’s economic growth, Zhang Monan discusses the “new normality” of Chinese economic growth. In addition to this, Monan discusses the weakening of the driving forces of net exports and its effect on economic growth in China. Moreover, Zhang Monan asserts that Chinese domestic investment is undergoing rebalancing due to a change in consumer demand.

The temptations of extrapolation are hard to resist. The trend exerts a powerful influence on markets, policymakers, households, and businesses. But discerning observers understand the limits of linear thinking, because they know that lines bend, or sometimes even break. That is the case today in assessing two key factors shaping the global economy: the risks associated with America’s policy gambit and the state of the Chinese economy.

Following World Bank projections that China will become the largest global economy based on purchasing power parity, William Yu contends that better economic ranking indicators exist, like market exchange rate. Using this measurement, where U.S. GDP was calculated at $17 trillion compared to China’s $9.1 trillion, China’s economy is expected to surpass the U.S.’s sometime in the next two decades.

Recent reports on China’s GDP are based on an overestimation of China’s purchasing power parity due to different calculation methods, writes Niu Li. While China’s aggregate economy is very large, it must continue to build up its service industry and increase domestic demand rather than solely focusing on the quantity of economic growth.

Despite predictions that the Chinese economy will overtake the US in 2014, China will still remain world No.2 for years, writes He Weiwen.

Due to China’s rapid economic growth, the country is now incurring the hazardous effects of its accruing environmental damage. China’s environmental problems are exacerbated by global demand. The U.S. and China can attain mutual benefits by collaboratively cleaning up China’s eco-system. China should also capitalize on innovative green technologies to develop the interior and the west of the country.

China’s central bank will not change its monetary policy in the near future, but will rather keep a steady but tight policy to get both credit and monetary growth back on track. This could be the keynote of China central bank monetary policy for 2014, writes Yi XIanrong.