Is China’s slowdown good news?

There is plenty of concern about the slowdown in China's growth, and what this might mean for businesses looking at expansion via China. To what extent should those businesses be worried about slower growth? The issues here are very relevant to the external environment in China, and could be useful for bullet points 1 and 6:

According to Mark Williams of Capital Economics, it is probably bad news for the over-supplied Chinese housing market, so any investments which rely upon that continuing to boom may well be at risk.

However, it also reflects a shift towards more consumer expenditure in China - which sounds positive for those businesses rushing to provide consumer products and services to supply the growing GDP per capita and the hunger for new lifestyles in the country.

There is also reference here to the shift in outsourcing as China loses it's low cost advantages (previously covered in this blog) with businesses shifting manufacturer to other Asian countries like Vietnam.