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.