[Summary]
China’s economy had grown up at the average rate of 10% for three decades, but last year it was 7.4% and for next year IMF estimates 6.8%. In other words, Chinese economy has deterionated greatly. One of the factors for economic decline is the ageing of Chinese population. Workers who support the remarkable growth has decreased. Limit of technical development also cause economic stagnation.
Investment has held up the great growth. At present, however, it is too excessive because people invest without spending money. Overinvestment is dangerous and China’s economy has great impact on world market, so we need pay attention to unstable economy in China.
[Opinion]
On October 29, Chinese government decided to abolish “a one-child policy” within the year. The policy has been carried out over 30 years and the purpose of abolition is increasing of the workfirce population. Therefore, a growth rate may recover.
However, I think China has another problem. Chinese dramatic growth doesn’t accompanies with the real economy. For example, even if a real estate company sells an apartment and investers buy it, without a borrower, inveters can’t make a profit and economy don’t become active. In China, at a glance, economic growth is going on. But, actually, Chinese market stagnates.