The recent patch of growth is one of the slowest that China has experienced since the late 1990s. Although its GDP grew roughly 7.7% in 2013 is really high from a US perspective, China feels like it has slowed down. However, TIME argues that we should welcome this
. TIME describes China as: “the economy was starting to resemble a breakaway train, chugging toward that unfinished bridge just over the horizon.” Previous posts discussed domestic debt piling up to risky levels and a financial sector talking on bigger risks.
President XI Jinping realized that China has to slow down. Unlike his predecessors, he did not like the idea of using the machinery of the state to pump up the growth. [which of course is easier for him to do after he’s ensconced in office] Xi wants to open up financial markets to improve the management of state-owned enterprises and expand
the power of the private sector. President Xi argues that this will make the economy healthier and more market-driven, which will lead to growth.
It is funny to say that slowing down is a good thing. However, it is necessary for all of us. China has the world’s second largest economy. The rest of the world will be affected negatively if China suffers from economic crisis. For now, slowing down is one of the best solutions.