The Chinese economy seems to have performed remarkably well both during the "Asian financial crisis" of 1997-98 and the recent global economic slowdown. One might conclude that the present Chinese economy is robust and in a position to perform well over the course of the world business cycle -- that is, if you choose to believe official reports.
Many observers suspect that Beijing has been overenthusiastic in its economic performance. This is because gigantic state-run companies comprise a significant fraction of the Chinese economy that are overwhelmingly in basic sectors and in heavy industry, like iron, steel and metal manufacturing. At least half of these companies are losing money and have been for a decade or more.
How such weak companies have been able to withstand the recessionary waves sweeping through the region since 1997 is not readily clear. This is especially unclear since world markets for products produced by the state-owned companies have been weak. If the present U.S. administration felt it must protect its steel industry with 30 percent tariffs due to global pressures, it takes a huge leap of faith to believe that China's steel companies are faring better.