On Monday, China said its industrial output expanded 3.8% in July compared with a year earlier, a tad slower than June’s 3.9% growth. Retail sales too rose a slower 2.7% compared with the 3.1% growth in June. Media reports quote analysts as saying that loan demand from the real economy remained weak. The country’s central bank cut rates with an aim to spur growth. Like the rest of the world, India’s northern neighbour faces challenges in terms of quickening inflation, growth challenges and the threat of flight of capital. To help us understand China’s imperatives, we have with us today,  Santosh Pai, Honorary Fellow, Institute of Chinese Studies (ICS), New Delhi.