Time to panic, or just economics 101? With Chinese economic growth rates dipping to a 27 year low, economists are blaming the trade war with the United States. The trade war is definitely playing a role, but it is also entirely possible that China's economy is finally slowing down after unprecedented growth as they get closer to their steady-state.. They are still growing at a rate of 6%, much higher than the United States growth rate. So, do you believe that China is in trouble, or is this decline in growth natural?
https://www.cnn.com/2019/10/17/economy/china-gdp-economy-trade-war/index.html
I think that although the slowdown in growth is expected and is a natural part after such accelerated growth. But for it to be record low.. it definitely shows that the trade war is hurting China. It looks like China has a strong precautionary expansionary policy in place so I wouldn't say China is in trouble just yet.
ReplyDeleteI agree with Ramsha. Like all other economies, China will follow a cycle. However with the trade war, U.S. limiting production in China, and a decrease in world demand, Chinese exports are taking a large hit.
ReplyDeleteThe trade wars with the United States, have unquestionably slowed and damaged the Chinese economy, but a normal and natural economic decline has also played a role. Due to this natural occurrence, I believe that the Chinese economy is experiencing a natural decline that is slowing its economic growth. Because of this decline, it is reasonable to assume that the Chinese economic growth rate will continue to slow.
ReplyDeleteI agree with Mikes. Chinese Exports will take a huge hit. Sometimes to grow an economy first has to be tested...this may bet that time for China.
ReplyDeleteI have zero doubt that China's economy is slowing naturally, as everyone else said. I visited China in 2015 and then lived there from 2018 though 2019 and even just between those two time periods the amount of visible growth, such as infrastructure, that they have been through it astounding. With such high growth rates though it seems obvious that it is not sustainable forever, at a certain point they will have to slow to steady-state growth as they reach the level of technology available and are slowed by more people already existing at a high living standard.
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