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The Arrogant and Stubborn Chinese Economy in 2021

Tuesday, July 6, 2021

 


China started with the economical reform long time back. There has been a substantial growth in economy along with the GDP growth after the inflation and this has neared to an amount of 9% in one year. Within one single generation China has caused a transformation from the economical point of view. There are more than 500 million people contributing to Chinese economy at the point of complete poverty level along with the rest of the notable but the lesser acclaimed achievements. China is one of the developing countries to participate in the Human Genome Project and it is the first developing country in manning the space program with best of completion.


Facing the Challenge


These days China is facing the monumental challenge in economy and also in the political sphere. What is most spectacular about the economic growth is that it can slow down after having an overwhelming period of performance. The reason for the slowdown is absolutely benign. It is not easy for the economy of a country to grow at the fastest when the per capita GDP is preferably high. The consequence of the slow down occurs following the same rhythm and there are more things you would like to do in relation to the economical status in China.


Reasons for Economical Downfall


It is not that China is a richer country and in turn it has contributed in the economical slowing down in the recent years. One vital reason behind the slowing down is the incorrect structure of the Chinese economy and inefficiency of people involved in the genre. There has been several reforms taking place from time to time but the Chinese economy had not been able to stand the test rightly. China is till date substantially statist in the stage of orientation. In result, for each of the percentage point of the GDP growth, China is in need of extra vigor and investments along with the complicated implications as part of the environment.


More Reasons to Point Out


The economical slowing down is not best for the health and status of Chinese population. At one time the economical condition of China was on the highest rank because of the quality of the exports. There were more reasons for the developed condition of the Chinese economy like fixed assets and investments, infrastructures and the high and low cost labor force. Things were not dependent on innovation and technology and here was the blow to the structure and status of Chinese economy in the real sense.


Balancing the Economy


In the years of 1980s and 1990s the augmentation happened and once again the Chinese economy was on the rise. Efforts were made to catch up with the Western economies. However, there have been evidences to show that China has been hitting the wall of diminishing the rate of returns to the economical growth model. In the situation, the export growth has been the major factor and it has been the growth driver at the stage when the western economies did not have that speed. At the time the Chinese investment in the genre of fixed assets has already touched the standard amount and this is almost equal to the first half of the country’s GDP.


The Final Words


It is hard for any other country to match with the level of intensity in the field of Chinese investment. In consequence, there is not much for the each additional amount of investment. You already have the emerged concerns regarding the implications of the Chinese economical slowing down. However, after the period of COVID attack the government of China is trying hard to improve the face of economy and in the case they are taking help of the people who are directly involved in the field of economy with the best of intent. According to the Chinese press there have been several cities that are experiencing the perfect repricing along with the value of the real estate assets.


Source


·  Bloomberg

·  StrategytoChina

·  Photo credit

·  Blog China

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