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Is Chinese economy reach a battleneck?

China has been incresing the interst rate for years(although recently it is finally decreased), and also there are lots of problem within the housing market.

Is China meet a battleneck after its sixty-year's dramatic development?

If it is, why?

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It's the Boom that should make you feel leery!
That's the thrust of my theory.
The capital structure is key!
Malinvestments,  wreck the economy!
The Boom gets started with an expansion of credit.
The Fed sets rates low. Are you starting to get it?
That new money is confused for real loanable funds,
but it's just inflation that's driving the ones
who invest in new projects like housing construction.
The Boom plants the seeds for its future destruction!
The savings aren't real! Consumption's up too!
And the grasping for resources reveals there's too few!
So the Boom turns to Bust as the interest rates rise,
where the cost of production price signals were lies!
The boom was a binge that’s a matter of fact.
Now its devalued capital that makes up the slack!
Whether it’s the late 20s or 2005,
Booming bad investments, seems like they’d thrive...

You must save to invest! Don’t use the printing press!
Or a Bust will surely follow, an economy depressed!

Source:
"Fear the Boom and Bust" a Hayek vs. Keynes Rap Anthem
http://www.youtube.com/watch?v=d0nERTFo-Sk
rickharris4 years ago
In the interest of improving your English

"Is Chinese economy reach a battleneck?

China has been incresing the interst rate for years(although recently it is finally decreased), and also there are lots of problem within the housing market.

Is China meet a battleneck after its sixty-year's dramatic development?

If it is, why?"

Corrected spelling

Has the Chinese economy reach a bottleneck?

China has been incresing the interst rate for years(although recently it has finally decreased), and there are lots of problem within the housing market.

Has China met a bottleneck after its sixty-year's of dramatic development?

If so, why?

I am not an economist but my view is this:

The worlds economy has slowed, people who have traditionally been the customers for Chinese products are buying less.

Continuous growth relies on increasing production and sales - unfortunately China now finds it's self in a position of over production and a a result floods the market with cheap products via Ebay to get rid of some of the over production.

China has started to get a poor reputation for quality of product and for wholesale copying of branded or protected products, this is making westerners think twice about buying "made in China" when home based industry is struggling.

Because of economic changes some manufacturers are pulling out of China to restart manufacturing in their own country.

The cheap readily available workforce in China is starting to want higher wages for what they do to met the rising cost of living this drives product costs up.

India is a rival - where most of the population speak English to some extent, workers are cheap and regulations few and far between. this makes then a serious competitor to Chinese prosperity in the future.
Lzx (author)  rickharris4 years ago
Well, thank you for correcting my mistakes.
To tell the truth, I learned in a Canadian high school for only one year. And I have finished three months ago. I really haven't use English for a long time. So, I will try to improve it next time.
rickharris Lzx4 years ago
No your English is quite good just lacking practice and correcting small errors, It's much better than my Chinese! or French after 7 years of learning at school.
Has the Chinese economy reach a bottleneck?

Surely:
Has the Chinese economy reachED a bottleneck?
Missed that one. My problem is I read it in an internal Chines accent, when you do that it sounds OK. :-)
This sounds allot like some school assignment or project. How about doing some searches online and reading up on the facts. Then form your own conclusion.
Lzx (author)  mpilchfamily4 years ago
Actually it is a report. We were asked about writing something we would interested in. And I decided to write about the differences between Chinese economy. I know it is a wide topic and maybe a huge book will not able to conclude it well, but I want to have a try. Just like no matter what the result is, at least I tried.The situation about Chinese economy will be just a part of my report.
Of course I google the questions all the time, but sometimes I reallu cannot understand those perfessional articals, because of my English level and knowledge limit.
Vyger4 years ago
In the entire history of mankind there has never been a government that did not fail. The people ruled by those governments usually believed that theirs would not fail even when they were on the brink of annihilation. The length of time that governments have been able to stay in power has tended to become shorter and shorter. These are facts, backed up by thousands of years of history. Will the current Chinese government still exist a year from now? Probably. In ten years? No one can really say. Will they always make wise decisions that will benefit their population? No, they will make mistakes. What will be the outcome of those mistakes? That all depends on the circumstances at that moment in time. All anyone can do is make educated guesses. It is not possible to know all possible outcomes that can result from even a small decision that goes wrong.