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China's economic growth will decrease

China’s economic growth will decrease

Analysts believe that, despite the slowdown in the growth rate, the Chinese government is still very much in favor of supporting the economy. With its economic growth coming to six percent next year. In recent years, China has benefited greatly from its relationship with Western countries. And has managed to export its products easily to these countries, with the help of the WTO rules, “said Vincent Chan, director of China’s division at the Swiss Credit Bank.

 

However, Chinese companies have faced barriers not only in Europe and the United States but also in Asian markets. Business conflicts with the United States, which is China’s largest trading partner, are also likely to be less likely in the near future. China’s Shanghai Stock Exchange fell by 35% compared with the same period last year, and China’s supply chain has suffered a number of problems. The housing market, which is one of the major drivers of its economic growth, has grown negatively for the first time in the past 30 years.

 

China’s economic growth will decrease

According to the Citigroup Institute, it’s likely that four million people in China will lose their jobs due to the US-led trade war. An economist at the Institute, Louie Lee Gong, believes that the continuation of the trade war will lead to the loss of China’s competitive advantage in the field of cheap labor and high added value. Among the macroeconomic indicators, China’s inflation rate is declining, but its speed is over-optimal. Swiss credit has predicted China’s economic growth to decline by 6.2% next year and a 5.1% surge in exports. With the slowdown of economic growth, deferred loans will increase, Chua Han Tang, an economics expert at the Fitch Selhozn Institute, said that small commercial banks with weaker infrastructure would probably be the biggest victim of these conditions. Imports of liquefied gas have reached their highest levels in China

China's economic growth will decrease

The country’s customs data for Sunday shows that 5.99 million tons of LNG were imported to China this November, up 48.5 percent from November. According to statistics, total LNG imports in the first 11 months of this year reached 47.52 million tonnes, up 43.6% from the same period last year. China’s appetite for natural gas is increasing in recent years. On the other hand, the country is encouraging various industrial sectors to use liquid gas instead of coal fuel. At the same time, other clean energy sources, such as wind and solar energy, are also government-backed. In 2017, China surpassed South Korea’s second-largest oil consumer after Japan. The petrochemical company is China’s largest gas importer. In 2017, it has supplied about 66 percent of its domestic needs. China’s largest gas consumption market is projected to be projected China’s average gas consumption will increase by 15 percent in 2017.

 

China’s economic growth will decrease

The reality of China’s economic slowdown, stripped to the bare essential, has to do with the diminishing effectiveness of several key contributors to the productivity growth that fueled the country’s spectacular economic expansion in the previous three decades. These include the rising quality and quantity of the labor force, the more efficient allocation of resources and investment capital, the rapid upgrading of technology, as well as sustained high export growth.

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