For the past few years, China has been building and building new skyscrapers, even though the economy has not been that well. Since the financial crisis of 2008, China's GDP has been growing remarkably more from the construction boom. To keep the economy stable, the construction companies need to build more and more, completely unstable.
Global demand are down, and domestic wages of local companies are going up. China has had factories and exporting to depend on along side with the building of companies, but without them, the economy would crash. Domestic demand needs to be stimulated, but the economy is very unstable, and with one tap of a shoulder, it could go crashing down.
Over the years, China's Economy has been fluctuating. The blog would discuss China's economy and discuss the current situation, and discuss the changes that it should/should not do.
Friday, March 30, 2012
Friday, March 23, 2012
Stocks
Stocks, a share where many people buy that could make them rich, or make them crash and burn. Everything is connected, and so are stocks. The weakening Chinese and Europe economy hurts the United States Stocks. It caused them to lower. Recently, Chinese manufacturers are contracting, having their stocks lowering. As the larges consumer of materials, and the slowing of the economy, it causes the United State's material companies to lose business and stocks. Over the years, the Chinese economy has been worsening which will soon affect the all aspects of the world.
Friday, March 16, 2012
Down Down Down
Previously, China has hidden its economy's true state, but recently, the economy has gotten out of control and it is revealed. Everything is down, property values, car sales, cement sales, steel production, and constructions has been down as well. Many data from China is unreliable, the government is covering up their true facts, to show everything is under control. China recently borrowed hundreds billions of yuan. Even though the economy is slowing in a dramatic incline, I believe that there won't be a collapse in the banking system and the property business would not crash. I do not believe that there would be anything done anytime soon by the government, because it is unethical to, many statistical predictions were made and many of them show that the economy would go back up.
Friday, March 9, 2012
The ¥
Over-investment and excess capacity depends on China’s economy. Fearing inflation, authorities see that the deflating housing market will limit fiscal stimulus. Many fear of inflation. Major export countries like the US and Europe, has been slow in growth, and as Europe debt crisis continues, it would stunt the growth of China's growth.
With China's capital account closed, many could not see any significant changes with the economy, which allows money can now flow out of the economy more easily than before. Late 2011, China’s surplus in the trade of goods, services and transfers, was offset by outflows from the capital account, which makes many investors insecure with the state of the economy.
China’s bank sells the yuan at a below-market rate, having it set the exchange rate above the market value and sell foreign reserves to support the yuan. China’s foreign-exchange reserves declined, which the central bank was trying to hold up the value of the currency as a reaction to the declining. Foreign-exchange in-flows resumed recently, but that the growth has been slow.
The Chinese are protecting their money by holding less yuan and/or gamble. Gambling is used as an currency converter, where one can change from Yuan to US dollars, or as a way to store and/or hold money. With the increase of gambling recently in China, it maybe a sign where the Chinese economy would get better soon.
Even though the economy has been in a slow growth period, it has not collapsed, and there is still time and new variables that would warn people if it does.
With China's capital account closed, many could not see any significant changes with the economy, which allows money can now flow out of the economy more easily than before. Late 2011, China’s surplus in the trade of goods, services and transfers, was offset by outflows from the capital account, which makes many investors insecure with the state of the economy.
China’s bank sells the yuan at a below-market rate, having it set the exchange rate above the market value and sell foreign reserves to support the yuan. China’s foreign-exchange reserves declined, which the central bank was trying to hold up the value of the currency as a reaction to the declining. Foreign-exchange in-flows resumed recently, but that the growth has been slow.
The Chinese are protecting their money by holding less yuan and/or gamble. Gambling is used as an currency converter, where one can change from Yuan to US dollars, or as a way to store and/or hold money. With the increase of gambling recently in China, it maybe a sign where the Chinese economy would get better soon.
Even though the economy has been in a slow growth period, it has not collapsed, and there is still time and new variables that would warn people if it does.
Friday, March 2, 2012
Rise and Fall
China runs a large trading surplus, but even though it is large, its exports fell in 2011, subtracting 0.5% from its growth. From home-grown spending, China’s economy managed to expand by about 10% in 2011, remaining surprisingly strong even in the fourth quarter. This growth was an affect from a large amounts of consumption for 50%. From that, the share of consumption in China’s GDP sharpened up in 2011 after falling for 10 years. The strength of China’s growth remains investment, on which its economy remains dependent on. When China’s criticizers are not bashing it for over exporting, they bash it for overinvestment in property. Its housing boom is, however, slowing markedly. China's price of new homes fell across the country in December compared to the month before. Households are struggling to obtain mortgages, and loans are extremely hard to obtain. Foreign capital fell by 65% in December compared to years earlier. China's economy has been falling for quite a bit now, but at times, it rises.
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