Question

1. Will China maintain its strong economic growth in the years to come? Some suggest it...

1. Will China maintain its strong economic growth in the years to come? Some suggest it will until 2050. What do you think?

Homework Answers

Answer #1

1.

I do not agree with this statement because China is exports based economy which is under pressure from last two years due to ongoing trade war with US and there are less chances that the China can continue to keep their currency at low levels for long periods.Chinese exports will be less attractive in the coming years due to higher value of China currency and also more tariffs from US on imports from China. As these exports will decline, Chinese economy can not sustain in the many years to come.

On the other hand, China has limited resources to give credit given the weak balance sheets of Chinese banks which means there will be pressure on investments which will again put negative impact on the economic growth.

I am not saying the growth will not there, but it be less in coming years.

the above will be answer..

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