A Crack in the Great Wall: Back in 2008 Premier Wen Jiabao described Chinese growth as “unbalanced, uncoordinated and unsustainable” and the situation has grown more precarious since. read more
The reason for this is that it’s easier to grow an economy from a low threshold than a high one. You can already see the growth of the Chinese economy slowing down since it used to be growing at 10+% and as China develops it will reach a point where 1–2% growth is respectable. read more
China cannot sustain its current growth rate if its economy remains dependent of construction and infrastructure growth. By some estimates, over 60% of China's growth is reliant on property, construction and related industries. read more
Industrial FIEs are responsible for over 30 percent of China's industrial output. Also, FIEs are concentrated in Southern and Eastern China, intensifying any inequality that results from rapid growth. The FIE sub-economy currently is growing at around 18 percent per year, while the non-FDI portion is growing at about 5-6 percent annually. read more