Micheal Pettis explains:

I have been arguing for several years that once China begins the adjustment process, which I expect to characterize the ten-year period of the current administration, growth rates must slow significantly.

My expectation for long-term growth is that it shouldn't average much above 3-4% annually.

This is what it will take for household consumption to rise to roughly 50% of GDP in a decade if consumption growth can be maintained at its historic rates of around 8%.

But I always warn that this is likely to be an upper limit, not a lower limit, to growth. The key is whether or not it is possible to maintain current levels of consumption growth once investment growth is sharply reduced. A recent paper by the IMF on the topic is very interesting and not encouraging.

Read more: http://seekingalpha.com/article/1425211-investment-and-consumption?source=email_global_markets&ifp=0