Beijing’s Burden: A Slowing China Bodes Ill For The World Economy

From The Financial Times:

As the credit crisis unfolded over the past year, one of the few certainties in the global economy seemed to be China’s ability to plough on regardless at double-digit growth rates.

Not any more. With Wall Street in tatters and Europe’s and Japan’s economies faltering, many investors are beginning to ask if China too might stumble badly. After five turbo-charged years of accelerating growth, the Chinese economy is clearly slowing.

For some, this is no more than a welcome easing from unsustainable rates of expansion. “China is going from supercharged growth to fast growth,” says Andy Rothman, a Shanghai-based economist at CLSA, the regional brokerage. Yet a flurry of recent data and anecdotal reports have raised fears that the economy might be slowing more rapidly – and last week’s surprise decision to cut interest rates for the first time in six years indicates that Beijing could share some of those anxieties.

The international crisis has also focused minds in China on the need to update a growth model that – despite huge improvements in productivity – is still too dependent on assembling goods for export without adding much value and on heavy industries that create pollution and suck in lots of capital.


Subscribe to CDT


Browsers Unbounded by Lantern

Now, you can combat internet censorship in a new way: by toggling the switch below while browsing China Digital Times, you can provide a secure "bridge" for people who want to freely access information. This open-source project is powered by Lantern, know more about this project.

Google Ads 1

Giving Assistant

Google Ads 2

Anti-censorship Tools

Life Without Walls

Click on the image to download Firefly for circumvention

Open popup

Welcome back!

CDT is a non-profit media site, and we need your support. Your contribution will help us provide more translations, breaking news, and other content you love.