Chinese shops feel the pinch of the Economical Crisis
Despite a booming economy, the financial crisis has exposed China's overdependence on exports to maintain its growth. As Beijing struggles to get its economy back on track, it looks to its local consumers for help. Unlike the Americans the Chinese are very good savers , very bad consumers . over the past decades Beijing have used cheap labor and low manufacturing costs to attract investment and drive growth with exports mainly to the American market however that policy have seen domestic consumption fall to less than 50% of the GDP an imbalance that needs to be corrected if china is to lessen its dependence on consumers in other nations , and that's the problem that faces the Chinese government right now , it has to convince a nation of window shoppers to dig deep in their pockets and spend the economy out of its current slump and continue to spend in the future in order to maintain the country's economic growth . concepts of consumption may change though with the younger generation .The government main goal is to keep the economy growing to maintain social stability a goal that can only achieved if it can convince its population to become good spenders
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this is Russian TV propaganda , it is normal that they are tough on China , on just because they are jealous of the Chinese economic developmental that they will never achieve but also they hate to see China and America trading friendly...
ReplyDeleteA) I won't say they are bad consumers. Chinese are smart enough not buying silly craps in general because their money are very hard earned. Chinese are not necessary bad consumers. If they see things they like and price is reasonable, they will pay cash upfront. They don't really like to borrow and they don't like to pay interests. Just like me. ha ha ha.
ReplyDeleteB) Too many people are not certain about their future although the government now is building the social security like health care and retirement for the majority (peasants) who don't have that yet.