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Risks of China's Economy in 2010
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Despite of the global financial cisis, China's economy is maintaining its fast increase rate. It is estimated that the GDP growth rate of the fourth quarter of 2009 reaches 10%. However, experts say China would face some hidden risks in the field of economy this year.
Inflation is the No. 1 issue. The risk of inflation is rising, which will speed up the increase of CPI or cosumer price index. That risk can lead to the rise of commodity price so as to influence the living standard of the common people.
The second risk comes from the real estate market. The rapid increase of housing price has caused the great concern among ordinary people. As we all know, the central government has taken a series of measurements to regulate and control the property market. But the intensive regulation can not only restrain private investment, but also compromise the sustainability of the economic recovery.
Last but not the least, China may well challenge the trade protectionism imposed by developed and developing nations. Like Japan in the 1980s, China's export may brave the grimmer trade barrier in the next few years. Trade conflicts between China and western countries would bring about the turbulence of exchange market, prompting price increase of commodities and finally the inflation globally.
Inflation is the No. 1 issue. The risk of inflation is rising, which will speed up the increase of CPI or cosumer price index. That risk can lead to the rise of commodity price so as to influence the living standard of the common people.
The second risk comes from the real estate market. The rapid increase of housing price has caused the great concern among ordinary people. As we all know, the central government has taken a series of measurements to regulate and control the property market. But the intensive regulation can not only restrain private investment, but also compromise the sustainability of the economic recovery.
Last but not the least, China may well challenge the trade protectionism imposed by developed and developing nations. Like Japan in the 1980s, China's export may brave the grimmer trade barrier in the next few years. Trade conflicts between China and western countries would bring about the turbulence of exchange market, prompting price increase of commodities and finally the inflation globally.
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Post comment Comment (17 replies)
- Reply bluephoebe
- I don't know much about economy, but I think you are quite right. there are more challenges and risks waiting for us in 2010. but we can always hope
- Reply Samaritan
- bluephoebe: I don't know much about economy, but I think you are quite right. there are more challenges and risks waiting for us in 2010. but we can always hopeIt's not my point of view. It's based on a report.
- Reply english0806
the crisis will pass,
- Reply evy
- the problems exist in the developing country such like China , but can't avoid it . The goverment must put forward more durable solutions.
- Reply Samaritan
- evy: the problems exist in the developing country such like China , but can't avoid it . The goverment must put forwYes, you're right. Our government must have noticed the risks, and relative solutions will be available.
- Reply Samaritan
- woods: China confront various challenges all the time.It's a kind of law in the process of rapid development.
- Reply taishan369
- what can we do and How？
- Reply Samaritan
- taishan369: what can we do and How？Don't worry. The think-tank of goverment must have some ideas.
- Reply Samaritan
- lailai11: what is the direct influence for our life of ordinary people?Price will rise, you need to pay more than before. That's the direct influence.
- Reply venus
- "China's export may brave the grimmer trade barrier in the next few years"_ using "brave" as a verb is very rare in sentence construction. Could u give me other examples? many thanks
- Reply Samaritan
- venus: "China's export may brave the grimmer trade barrier in the next few years"_ using "brave" as a verb is very rare in sentence constbrave the bad weather. brave= face bravely
