Office vacancy rates in Pudong are over 50%. Many of the signs of excess capacity are readily apparent in China: it is only the massive currency injections, in keeping the currency pegged to the dollar, that have allowed such expansion unjustified by demand.<p>One way or another, China has borrowed from the future and will have to pay for this excess expansion. It could be a crash, or it could be years of stagnation as the nation attempts to use up the excess capacity it has built.<p>This is a good piece written by someone who understands the underlying economics.<p>Chanos has been criticized as just recently beginning to study the Chinese economy, but sometimes being fresh to a subject helps distance an analyst from recent past--which can be a good thing.