Regional transportation networks constructed by China will contribute significantly to its leadership in Asia. Transportation networks will provide China with new and diversified supply lines and consumer markets, helping it to spread its regional economic influence.
Although economic deceleration is expected and is not necessarily a terrible outcome for China, concerns over the transition are warranted. Indeed, the economy is facing numerous constraints, domestically and externally.
The importance of innovation which the Chinese government puts on economic growth merits a review of the issue and the lesson of productivity paradox in which the US experienced will hopefully shed some light.