CHINA MAY NOT OVERTAKEAMERICA THIS CENTURY AFTER ALLFor additional information about Business with Chinaplease visit www.C...
www.China-Business-Connect.comWith the recent decades of surging progress from China, many believethat they could be runni...
www.China-Business-Connect.comThe data may also be altered to help with the perceived confidence inthe business communitie...
www.China-Business-Connect.comEven with these overstated data points, most economists and analystsclose to the Chinese eco...
www.China-Business-Connect.comIn 2012, the GDP comparisons of China and the US, when adjusted forcurrency exchange, had Ch...
www.China-Business-Connect.comThe US debt crisis is still being felt, but many people, including GeorgeSoros, believe that...
For additional information about Business with Chinaplease visit www.China-Business-Connect.com
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China may not overtake america this century after all

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China may not overtake america this century after all

  1. 1. CHINA MAY NOT OVERTAKEAMERICA THIS CENTURY AFTER ALLFor additional information about Business with Chinaplease visit www.China-Business-Connect.com
  2. 2. www.China-Business-Connect.comWith the recent decades of surging progress from China, many believethat they could be running out of steam. The government may even beslowing the natural expansion as they are trying to dial down the speedof expansion, in hopes that they can avoid a boom-bust cycle that mostof the western nations are trapped in.With aims of a moderate 7 percent growth, the explosive expansion,through limiting the possible investment, may be winding down onpurpose. But other argue that the economic engine is just running outof juice and that the government’s attempts at reducing the growthrates to moderate levels are just a guise.2
  3. 3. www.China-Business-Connect.comThe data may also be altered to help with the perceived confidence inthe business communities. Although the growth data is calculated fromthe standard sources, there have been rumors that the companies, suchas the utilities companies, are asked to massage the numbers. Theoverall consensus is that the data may be inflated by as much as 10percent.3
  4. 4. www.China-Business-Connect.comEven with these overstated data points, most economists and analystsclose to the Chinese economy believe that the growth will crash, andthen level off between 3 to 4 percent over the next few decades. Withthese lowered growth estimates, it is important to note that even as theUS is in recovery mode it’s rate of growth is still under 3 percent- thelower end of China’s eventual stabilized growth figures.4
  5. 5. www.China-Business-Connect.comIn 2012, the GDP comparisons of China and the US, when adjusted forcurrency exchange, had China at about 75% of the US’s purchasingpower. Upon further analysis, some of the environmental economistpoint to the fact that much of the Chinese GDP is still based onliabilities that will need to be changed and upgraded over the comingyears, and adjust the relative purchasing power to a figure that is under50%. With these statistics in mind there are many that believe Chinawon’t surpass the US this century.5
  6. 6. www.China-Business-Connect.comThe US debt crisis is still being felt, but many people, including GeorgeSoros, believe that China’s state banking system is poised for a similarbust. These claims can be further supported when you look at theamount of credit that China has been issuing, with a jump of more than100 percent in the last four years; about $11 trillion-which is the size ofthe entire US banking system.With all of these figure in mind most people believe that China,although it is still going to outpace the US in growth, probably won’tpass the US, at least in the immediate future.6
  7. 7. For additional information about Business with Chinaplease visit www.China-Business-Connect.com

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