China is much in the news of the late with a state visit to Washington.  However the most interesting news coming out of China has to do with the state of the economy.  Many observers are worried that China is at risk of an overheating economy and the inflation that would come along with that.  This heightened risk of a policy mistake is leading in part to the market’s weakness.  In today’s screencast a look at the Chinese economy and its status as a ‘battleground stock.’

Items mentioned in the above screencast:

The bear case on China.  (Telegraph)

China: higher growth=further tightening.  (Pragmatic Capitalism)

Excess liquidity remains in China.  (beyondbrics)

Can China put the ‘inflation genie‘ back in the bottle?  (Gavyn Davies)

Daily chart of the iShares FTSE China 25 Index Fund (FXI).  (Finviz)