Is China's Economy Overheating? By David Ignatius. Yes. Li Ruogu, the deputy governor of China's central bank

cautioned that the United States shouldn't assume that China will keep buying U.S. Treasury securities indefinitely. If the United States doesn't protect the value of the dollar so that it is a stable "anchor," China will eventually move to hold its reserves in a basket of currencies, he said.

China's debate about overheating has received relatively little attention in the West, but the issue could be the most important challenge for the global economy. The Chinese locomotive has been pulling Japan and other Asian nations into recovery. If China slowed suddenly, the global economy would feel the crunch.

China's leaders seem to understand that the world is counting on them to get economic policy right. "Neighboring countries are dependent on us," Li said. "If we have a hard landing, they will be affected."