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By 2008, China''s economy faced a series of challenges that could threaten its growth and trade balance. This case presents a structure for students to discuss China''s economy in the context of these threats. Prior to this time, there had been general feeling that China could continue indefinitely with its exceptionally high growth rate of approximately 10 per cent annually. The substantial gap between wages in economically advanced nations and China might continue to attract huge volumes of foreign investment indefinitely. This optimism was being questioned by 2008.