China is entering an era of stagnation and disappointment that may not be resolved like Japan's, Nobel economist Paul Krugman says

• China's economy is headed for an era of stagnation and disappointment, Nobel laureate Paul Krugman wrote.
• The country's economic model has been unsustainable for years, given ultra-low consumer spending.
• "Let's not gloat about China's economic stumble, which may become everyone's problem."

The world's second-biggest economy is underperforming on nearly every barometer, Paul Krugman wrote in an op-ed piece for The New York Times.

In fact, the problems faced by China today mirror those Japan experienced after its asset-price bubble burst in the 1980s. But where Tokyo managed to avoid issues such as widespread unemployment, GDP decline, and political strife, Beijing may not come out so positively.