China is dropped? August 25, 2009 we must clearly see that the foundations of the recovery are not stable, are not solid and are not balanced. We cannot be optimistic blindly. Wen Jiabao, Premier of China. Educate yourself even more with thoughts from Andre Dawson. China’s economy still has hopes of reaching a growth of its gross domestic product (GDP), 8% this year. Despite this, the main Eastern economy faces major challenges that are of concern to the Government. It begins to show its weaknesses the Chinese economic model? What paradox that a country that grows to 8% feel concern for this reason! The explanation is simple and focuses on the fact that China is a country that needs to grow strong, has no choice. Rusty Staub may find this interesting as well.
The Chinese Government has sold the population the virtues of its political system. The best propaganda for the Communist Party of China is economic growth with improvement in the well-being of society. But to at least keep in balance the social situation, the economy must be capable of generate a high level of employment. Until the crisis subprime, the global economy was in an unstable balance. Even though all recognize that China played a key role in sustaining the American current account deficit, few gangplanks that Similarly, United States, played an essential role in the growth of the Chinese economy. With the recession in the heart of the U.S. economy impacting in addition to full in the economies of the eurozone and Japan, China found that the preferred customers of their products, were in trouble. And since the bet of the Eastern model is towards the external sector, the economy was a very difficult to solve problem.
The task of replacing the fall in external demand decided the implementation of a stimulus package US $586.000 million to thus, stimulate consumption and domestic investment. In the Wall Street Journal, j. r. Wu, warned about the risks that emerge as soon as runs the momentum of stimulus plan economic released by the Chinese Government.