Is the Chinese economy in trouble?

Friends,

China produces only 30% of their manufacturing for local consumption.

That is too low. And economists pointed out, 50% of their production is because of cheap (bad) loans.

It may not be sustainable.

But, what do you think?

Is China in trouble? Or, is this media hype?

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3 Responses to Is the Chinese economy in trouble?

  1. A.Marousas says:

    I do not think that China is in any dire trouble.
    Right now they are actually positioning themselves as equals to the US.
    China holds a large deal of US assets, btw.
    China is/will be the next superpower

    • Thank you! That is so true.

      How should China move from a production economy to a production and consumption economy.

      Or, do you believe they can continue to produce and not consume?

      • A.Marousas says:

        They are doing it as we speak.

        Labor costs will not remain low in China forever. As the country grows wealthier, so will its people.
        China has a rapidly growing middle class that will lead to the need for more consumption.

        The Chinese have already started to open factories in African countries for their cheap labor costs.

        Within the next few years I believe we will see changes in the global economy and global sourcing as Chinese labor costs will change.

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