China, in the eyes of the world’s media and investment commentators, has gone from being an economic marvel to facing a looming crisis in just a few years. This fall from grace is easy to understand, given the slowdown in the country’s growth, the structural challenges it faces, and its size and overall importance to the world economy. Clearly, China poses risks to investors. One risk in particular concerns us, however: the risk that investors may be underestimating China’s upside potential. Unless investors take a balanced view of the risks facing China, we believe they could experience strong “future shock” in the next few years if, as is still possible, the country succeeds in its objectives.