Temporary disruptions are delaying recovery but won’t derail it

The Tianjin blast, along with efforts to ensure blue skies in Beijing ahead of this week’s Victory Day parade, will have weighed on industrial activity in August. But the drag from these disruptions should prove temporary and the bigger picture is still that, in contrast to the widespread doom and gloom about China’s immediate economic outlook, we think there are good reasons to expect stronger growth in the months ahead.