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China News Network on June 21, according to "Newsweek"
reported on June 20, the first decade of the 21st century global economy, how will the
end, as early as 10 years ago have been clues. In 2000, Anglo-Saxon economic model
the rise, the technological revolution sweeping the world almost; of the 20th century
90's, the world's attention has focused upon in Japan, which 80
years in the 20th century to redefine the global economic stage, but today the
Japanese are as losers, many admired their eyes to China's prosperity on.
But now China's economic growth rate has slowed the trend of slowing
down, which would trigger a chain reaction around the world. But analysts say
China's economic growth will continue to be strong, will enter China after
the global era.

China's economy to balance the drive to rebalance the world economy

China this force so powerful, single-handedly brought about the development of
economies all over the world, Brazil and Australia, this resource-rich countries,
through the sale of iron ore, copper and other commodity supply China's
architectural wonders, achieved rapid economic growth. Many well-known investors
believe that China-driven boom in investment spending, will continue. China can
sustain such high economic growth mode for several years, mainly because of its rural
economy is to achieve industrialization. Many workers can still be found in the
emerging manufacturing city, the Government can continue to vote heavily in
highways and factories. Analysts believe that the global recession in 2008 may reduce
Chinese exports, slowing down the pace of China's economic development.
Although China's exports actually decreased, but the Chinese government
implemented a massive stimulus to infrastructure construction, further expanded the
investment market to maintain economic growth rate of more than 8%.

But now, a lot of evidence to show that China's growth miracle is in the
slowdown of the edge. China in recent years to maintain 10% growth, the future may
be reduced to 6% to 7%; spending growth will decline, because only so many new
roads, railways and ports to be built, and land and labor costs are dramatically rise and
the Government's expenditure in these areas are shrinking. China has built
65,000 km highways, second only to the United States, 80,000 km road network;
since the financial crisis, banks are also facing higher savings, credit control and
demand challenges, which further affect investment.

The next ten years the world economy depends on China's economic
growth momentum. I believe the Chinese economy will continue to double-digit
growth rate of people think that China could use the alternative investments in
consumer spending, with the domestic market instead of exports. This is not only the
process of rebalancing the Chinese economy is rebalancing the world economy to
achieve a good opportunity to give more opportunities to sell to Western economic
consumer goods in China. But that hope was a great uncertainty, because China is not
the traditional economic model of consumption. In the past 30 years,
China's consumer spending rose only 9%.

Reached a crucial turning point in China's economic growth in a number of
factors have constrained

Now, China appears to have reached a critical turning point, too difficult to continue
to grow rapidly. 70 years of the 20th century per capita income in Japan and China
today, a similar level, investment spending began to decline significantly, economic
growth rate declined from 9% to 5% of the. But China and Japan are obvious. 46% of
China's population lives in the city at a time when Japan had 55% of the
population living in cities, urbanization in China there is still much room for growth.

In addition, despite a rebound in exports of China in 2010, but limited the future
growth of exports, China has become the world's largest exporter,
accounting for 10% of world export markets; Finally, China will be forced to
re-evaluate the currency, which would make China's export
competitiveness decline, increasing domestic consumption in the share of economic

In addition, China's population policy led to a shrinking workforce and a
decade China's core labor force (35-54 years) increased by only 500
million, 90-20th century, has increased 90 million years. Bound to lead to reduced
labor costs, which will mean a more balanced economy, but also means that low-end,
high-growth manufacturing sector to be transferred to Africa and Asia, cheaper market,
but not necessarily a bad thing.

That Chinese policy makers only focus on economic growth, social stability,
observers ignored, the same concern about tight labor markets, rising inflation and so
on. China's major urban real estate prices soaring, more disposable cash to
buy multiple properties in China. To encourage developers to calm prices, the
government began to take stringent measures to increase the minimum deposit
requirement to suspend some of the new project loans. China accounted for one third
of the real estate investment expenditures, in such a situation will inevitably fall into a
period of slow growth.

China's   economic              slowdown        has      been      likened      to

China's economic growth slowed to subvert the commodities sector. In
2000, there are only very few people invest in the price continued to fall more than 20
years of consumer goods industry, few foresaw the coming age of Chinese demand.
But the unexpected is that when the time comes, commodity prices has brought huge
profits directly. Now, iron ore, oil and copper and other commodity producers are
expanding production capacity.

China's        economic      slowdown      could   shake     10     years    of
"star" economies, including Australia and Brazil. China
accounted for 30% of global demand for industrial products to 60% of Australian
merchandise exports accounted for 60% of Brazil's 55%. Australia now
that he is a lucky country, its investment in the Chinese metal mines, thus increasing
employment; Brazil's growth this year expected to reach 7% to 8%, making
it a favorite global investors. Both countries are accustomed to small savings
"account deficit", looking forward to China's
prosperity will not end. In addition to the two foreign countries, China in the past 10
years, oil demand growth accounted for nearly half of global oil demand, oil prices
will remain stable so that Russia, Venezuela and other energy power development
budget to relax a bit. However, once the economic slowdown in China will be quick
to change these situations.

Some investors believe that even if China's economic growth slowing, the
Chinese market continues to grow. Computer and TV sales, for example, China still
has great potential. In addition, this also means that imported goods to benefit from
falling commodity prices, such as India and Brazil. Commodity prices may ease
inflation pressure, which is in these countries a major obstacle to economic growth.

In addition, some people worry about China's economic growth slowed a
huge impact. One commentator to China's economic growth rate down 8%
compared to Hollywood's "Speed" (once the car slow
down to 80 km, a bomb would explode). In China, the bomb may be triggered by a
sudden drop in the employment rate, and then detonated by the labor unrest. China
may be in the 20th century in Japan 70 years is similar to the Japanese economy
began to reduce speed, but still maintain a strong growth for 15 years. China holds a
percentage of global economic output has more than doubled over the previous
decade, but still only 8.5%. If the Chinese economy in the next reduced to 6% to 7%,
almost a "catastrophic incident." (The Dragon)

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