This note from the team at GaveKal Dragonomics offers us some insight into the current situation in China. That the situation is serious, they agree, but they do not see it as life-threatening without policy errors. I should note that the Dragonomics team has become more concerned over the last nine months, from their former stance where they were saying there is no problem. I recently spent some time with Leland Miller, the director of the China Beige Book, which shows stress building up in the private sector across all regions of the country.