Structural Change and Moderating Growth in the People’s Republic of China

The People’s Republic of China (PRC) is undergoing several structural and cyclical changes, which have wide-ranging implications for economic activity in the PRC, the rest of developing Asia, and the world. This report assesses the effects of these changes by looking closely at various channels of transmission including commodity prices, trade, and production. The PRC’s continued growth moderation could knock off a third of a percentage point a year in growth for the rest of developing Asia over the next 2 years. Thisreport discusses how developing Asia’s policy -makers can respond to the challenges and opportunities presented by these changes.