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China’s Trembling Economy Suggests ‘DON’T BET ON BEIJING’

After years of success and three decades of nearly double-digit annual growth, China is ready to witness the slowest annual growth rate since 1990. Many economists and analysts seek this phenomenon as the End of China’s Economic Miracle at the same time alarming investors NOT TO BET ON BEIJING.

The Financial Times recent report revealed that China has exhausted approximately $7 Trillion since the financial global crisis. According to National Development and Reform Commission, ineffective investment pattern and the waste of resources on less beneficial projects made up nearly half of the amount being wasted since 2009.

The increasing numbers of sky-scrapers, the race to own the tallest building in the world, empty residential buildings crowding the skyline of many China’s top level cities are the major signs of this prodigality. Besides, millions and billions of Dollars have been disappeared in the opaque pockets of the ruling party of China. While Chinese president Mr. Xi Jinping insisted on a new type of Great-Power Relations between the two super powers i.e. China and America during the Asia-Pacific Economic Cooperation forum earlier in November. Despite of all the problems, China is certain to take over the U.S as the world’s largest economy in near future after having become the largest trading nation. But this is not the only reason, the economical and political dysfunction in U.S and disparities in the fiscal matters of the States are the root cause of economical backwardness in U.S these days.

There are numerous other reasons to be cautious while investing in China. The demographic condition of the country is going to worsen as they will face the most abrupt aging crisis in the human history. The consequences of one-child policy will be clearly evident by 2040 when the ratio of retiring workers will collapse from 8 to 1 today to 2 to 1. These trends are alarming and will have severe social, cultural and fiscal implications.

After failing to meet this year’s target of GDP and growth, China has already trimmed down the economic growth targets for the year 2017. Owing to all these conditions and situations, China’s economic juggernaut will face real challenges in the next decade.

Marketing Evangelist, Dreamer, Idea Artist, Aspiring Entrepreneur, and Educationist at Heart these are some of attributes that best define myself. I love to read about technology, entrepreneurship, and autobiographies. Owing to the content creation specialty posses the natural flare for creative and academic writing. Right now head of a wonderful team at Phonebook Online.

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China’s Trembling Economy Suggests ‘DON’T BET ON BEIJING’

After years of success and three decades of nearly double-digit annual growth, China is ready to witness the slowest annual growth rate since 1990. Many economists and analysts seek this phenomenon as...