Unbalanced, unstable, uncoordinated and unsustainable economy risks losing its capacity for resilience

Once again, China has defied the naysayers. Economic growth picked up in the final quarter of 2012 to 7.9 percent - half a percentage point faster than the 7.4 percent increase in GDP in the third quarter. This was a meaningful increase after 10 consecutive quarters of deceleration, and it marks the Chinese economy's second soft landing in slightly less than four years.

Despite all the talk about the coming shift to internal demand, China remains heavily dependent on exports and external demand as major drivers of economic growth. It is not a coincidence that its last two slowdowns followed closely on the heels of growth slumps in its two largest foreign markets, Europe and the United States. Just as the soft landing in early 2009 occurred in the aftermath of the horrific US-made crisis, this latest one followed the European sovereign debt crisis.