Downside of China's economic growth

China's economy has been raised rapidly. In the background, there were a number of people. Population is the most important element. China can easily get labor force into cheap price.

Now, China's average economic growth rate approach around 10%. It is actually surprising numerical value. World economy is affected by economic indicators of China. But from a longer perspective, China's economy has many problems.

First, domestic needs is weak compared to exports. It is came from income-gap between low income class and high income class and weakness of social security.

second, According to the book, China's economy stand on the edge of precipice, there are many uncompetitive companies,
State-owned enterprises monopolize the market but they have not made a profit,
Communication companies maintain lower service, call quality but they appropriate expensive charge. And China have too many rules and regulations. High taxes is typical.

More than all, Chinese pride is really high. It is very dangerous thinking like western nations did. Pride can be driving force but it can be poison.


I think that China can be the top 2 with United States.
Can they do replace the strongest nation? I don't know well.
China's economic growth is these days hot issue.
It is worth watching the change of the balance of power in world economy.