China has economically peaked: US expert

Kolkata, Aug 16 (IANS) Observing that the Chinese economy had reached its peak, US foreign policy expert Walter Russell Mead Thursday said that the country was on the "brink of a major economic crisis".

"Economically, China has already peaked. It is an economy driven by the manufacturing sector and the country already has a huge margin of over production. Add to it, the lack of internal demand, I think China is on the brink of a major economic crisis," said Mead here.

Speaking at an interactive session entitled "Does the future belong to America", Mead said that the US was keen on developing its relationship with China.

He also painted a rosy picture of the American economy saying that the country was sitting on vast reserves of oil and natural gas which will further bolster the country's growth and development.

Talking about his country's policy towards India and China, Mead said: "The United States of America's approach to India and China will be same what was with Japan and Germany post World War II - get rich, succeed and grow. The entire world is open to you including the US markets."

In the city on a two-day visit, he said West Bengal could be the centre of huge economic expansion.

"Looking at the potential of trade with Bangladesh and the northeast states coupled with the opening up of Myanmar, I think (West) Bengal may be on the brink of a new economic transformation. It can be a centre of huge economic transformation," said Mead.