The rebalancing in China's economy - from a reliance on manufacturing and investment for growth towards services and consumer spending - even as it further deregulates is causing much angst globally.
Because of its exposure to China's commodity demand, Australia is on the front line of this angst. But it seems like only yesterday there was much talk of the Asian century led by China, of which Australia could be a huge beneficiary.
And last decade we certainly did benefit from China's rapid industrialisation, as resource exports to China soared along with the price we got for them and this drove a massive resource investment boom. 
But with the Chinese economy rebalancing towards less-commodity-intensive services industries and consumer spending for growth, can Australia rebalance too or are we destined for something much worse?
The short answer is Australia has been rebalancing, and doing better than many feared - call it the glass half-full - but the glass half-empty view is we have a long way to go.
First to the glass half-full. It's important to note the adjustment in China and the associated end to the mining boom is not new - it began in 2011 when the iron ore price peaked at about $US190 a tonne. The subsequent fall in commodity prices is because of a deceleration in Chinese growth, and a huge surge in the supply.
So the hit to the Australian economy has been happening for some time as the iron ore price has since crashed to about $US40 a tonne and other commodity prices with it. Mining investment slumped from about 7 per cent of GDP to 4 per cent. The former has depressed national income and the latter has knocked 1 percentage point or so off annual GDP growth. But in reality we have weathered the storm reasonably well.
There is much more going on in Australia than just getting things out of the ground and exporting them. Resources dominate our exports, but are only a small part of our economy. Mining and energy activity is just 9 per cent of GDP. Most Australians never go near a mine, don't know a miner, and their livelihood does not depend on commodity prices.
But when the mining boom and Chinese growth was in full flight these other things were suppressed by the combination of higher interest rates and a surge in the Australian dollar that made many Australian businesses uncompetitive.
This particularly weighed on the most populous areas of Australia. The popular saying was, "The people of western Sydney were paying the price for the resources boom in north-western Australia."
With the resources boom gone, the pressure is off the rest of Australia's economy because it has meant lower interest rates and a lower Australian dollar. As a result, we are supplying a decent number of dwellings to our previously undersupplied cities, retailing has improved, parts of manufacturing are recovering looking, our farmers have had a boost from the lower Australian dollar and export earnings from higher education and tourism are running at record levels.
In fact, tourism is showing just how well we can service Chinese consumers, with tourists up 21 per cent over the 12 months to   November last year to more than 1 million a year. NSW and Victoria are the top-performing states - believe it or not employment in NSW rose by a whopping 4.6 per cent last year.
So Australia has dodged the recession many said was inevitable. Growth continued and the economy is far more balanced in terms of sectors contributing to growth. That's the good news.
The bad news - or the glass half-empty perspective - is that Australia is achieving far below its potential. Economic growth is sub-par. Our sharemarket has underperformed global shares by about 40 per cent in the last six years. The plunge in the Australian dollar has come at the cost of much lower national purchasing power, for example, adding nearly 40 per cent to a US holiday. Our budget deficit seems to blow out year after year. Consumer and business confidence is fragile.
With the mining boom long gone, if we want to return to the growth in living standards we have become accustomed to, we must return to the economic reform agenda of the '80s and '90s. This means getting our tax system right, making the economy more competitive, and investing more in infrastructure and education.
In taking advantage of China's industrialisation we relied on our huge natural resources endowment. But to make the most of its consumerisation we must rely more on our human capital, as it will be in the area of services provision that Australia will be best able to compete which means our services industries - like financial services, health and education - must be as productive as they can be.
Australia is already rebalancing after the China driven commodity boom. But to make the most of the next stage of China's development, we need a reinvigorated focus on boosting our productivity.
Shane Oliver is head of investment strategy, and chief economist, AMP Capital.