Woah, China!

Forget The Vest ... fear THIS:

On Monday, China's premier Wen Jiabao lowered the economy's growth target to 7.5 percent from 8 percent, where it has stood for years.  - AP

Early, of course, to sing a dirge but China's "golden era" of ridiculous growth at all costs seems to be getting a bit more expensive these days. Expect to SLOWLY see:

• Reduction in expenditures for extravagant infrastructure projects
• Asset management shift from their current stance (overweight US Treasuries) to something more akin to Singapore's Temasek
• A review of the commercial tax and licensing structure (hopefully not a Chinese Raj)
• A harder line on international trade, both in terms of limitations and in terms of tariffs
• An attempt to diversify labor-intensive businesses across labor pools (inner-China manufacturing zones, African investment zones) 
• Industrialization deeper into inner-China
• All of which will help pay for increased, but highly-targeted social support funding including medical care and pensions, as well as their continued military build-up
• Targeted efforts to increase enforcement, probably with a focus on IP law, financial regulation, governance (as the Economist said a few weeks back, the Chinese government is the only group that has actually read the entire Dodd-Frank act)
• Maybe even some efforts to address environmental sustainability issues