The essay "slowdown in Chinese economy"
Executive summary: The Chinese economy has been rapidly growing and is now the 2nd largest economy in the world. The size of such economy means that it bears significantly many effects on the global commodity price and global trade.
Limitations for the China's Economic Model
1. The institutional structures
2. Structural constraints
3. The rebalancing the economy
4. Transformation of a post-industrial society
Causes of the slowdown: The slowdown in the performance of the Chinese Economy has been variously attributed to: excess capacity due to results of a growth model that is too focused on investment; the accumulation of excessive influence in several sectors of the economy.
Overheated investment: The Chinese economy has an investment rate as a share of GDP of approximately 50%. Many economists argue that this figure is extraordinary. The driving factor why such an investment rates of that level has been productive largely because China needed to meet the three-decade gap in both transport and housing investment.
Rural-urban migration
Cooling exports
Weak consumption
Investment Driven Model
Export-led Growth
Financial Repression
Implications of the Slowdown
Conclusion