In a lecture given at the Heritage Foundation, it was stated that there are four issues China is currently facing. One of those issues is the economy. It is clear to see that China has experienced one of the most rapid growths in the past few decades. The main argument behind the idea that China will have to face problems in the economy is that conditions that allowed for such rapid growth will not be present in the future. “China has relied extensively on lower wage rates and export-driven growth. But wage rates have been bid up, as happens; the Chinese are victims of their own success, you could say.” At the same time, China will not be able to rely as heavily on exports since countries can no longer import as much as they used to. The Chinese government has even reported that that economic growth per year will drop about 4% in the next decade. (see second article below). Do you think these projections will come true?