You are viewing a single comment's thread from:
RE: China Economic Growth and Your Thoughts on China's Future
I'm sure they are manipulating data, but we don't know in which extent. Some analysts are trying to make alternative calculations (for GDP growth, for example), based on energy and raw materials' consumption.
Hi @futurekr, @deathcross
For past few years China has been focused on delivering hight GDP.
Most of that GDP comes from construction sector, which has been doing very well for very long.
Unfortunatelly China reached point, where there is no more need to new properties, roads, bridges. Huge ghost cities have been build everywhere. Construction companies have been receiving loans from banks, which have been told (by authorities) to provide all those businesses with required loans.
This is indeed great number manipulation. Imagine running company, which is building houses and those houses are being empty. But you (as a developer) are building more and more, providing people with jobs and enjoying unlimited loans. How long could you continue before your business would have to stop?
Cheers
Piotr
The Chinese government seemed to have a good start but as it is now with ghost cities, china economy might crash but at the same time, do you not think that the population of china could increase that the building will not be enough to accommodate them anymore.
For some years now, the Chinese are talking about a new model, a consumption-driven economy. Wages surged a lot, so did commerce, online businesses, retaill, car market etc. Population growth will stall, so they put many robots now into the factories...