For more than twenty years, predicted that China's economy is about to collapse of the prophet warned that, in today's economy on the greatest success stories is about to an abrupt end. More than 20 years, the prophet has been making mistakes. Of course, China's problems: imbalance of growth pattern, the expanding size of credit and aging of the labor force, etc. But isn't this all means that the world's second largest economy will collapse? In the lists the main arguments of cassandras, and can challenge their opposing views. Point 1: the China investment excessive bubble just broken! Indeed, investment in China's gross domestic product (GDP) slice of the alarming levels, according to 2010 data for nearly 50%. But this does not mean that, China in infrastructure investment has already reached the limit. China's rail network total mileage is still 40% of the United States. More important,discount sunglasses asked China to expand consumption formulation and didn't take the point, which led the Chinese growth of exactly what it is. Buy more iPad might increase demand, the short term for sustaining growth momentum. But at the same time it also increased China's capital stock, and improve the production capacity of the China. In fact, it is because of China's expanding investment, its growth to so rapidly. Only such rapid growth, then can make the family income and consumption spending can be greatly increased. Point 2: real estate in China is about to collapse, and drag the other economic component. Yes, the real estate industry is an important part of China's economy, indeed, house prices control policies are implementing in, thus inhibiting real estate investment. But the department due to slow down the government launched the deliberate policy. In a more affluent and continuously raising the level of urbanization in China, to better the potential of new demand means that the industry can't collapse. Real estate in China 201 1 at the end of the total amount of loan accounts for only 22% of GDP. In the United States, by the end of 2007 mortgage loans account for 103% of GDP. This means that even if China's house prices really down, the family also won't go bankrupt, banking also won't go bankrupt. View 3: the shadow banking system is a will burst at any time of disaster! China has expanded size of credit to worrying level, but this to consolidate growth, through the 2009 and 2010 crisis period is necessary. At the same time, the growth of credit outside the watch at an alarming rate, but it in the credit in the total share never reached a very high level. In early 2008 to reach the top, the shadow banking system is almost the size of the traditional bank system's two times. In China, outside the watch in outstanding loans credit the proportion of still account for only a small part. Bernstein analyst said the consulting company by the end of 2010 the proportion is 28%. More important, in Beijing to solve this problem is making progress. The second half of 2011, outside the watch of credit or down dramatically. Point four: China's labor force is shrinking. Wages rise will weaken its competition. China's Labour scale will not further expand, laborer continuously from the countryside to the factories trend has begun to stagnation.nfl jerseys cheap But critics exaggerated the severity of the problem. China's rural labor force still there, they just don't want take the current low wages, a long journey to the factory work far away. Raising the minimum wage is (raised) and the factory to the inland move (such as foxconn company relocated to chongqing) will help attract out of rural labor force. Even if the salary is up, but they starting point is very low. American labor bureau estimates that in 2008, China's manufacturing wages for the United States only 4%, Mexico, 20%. 5 views: China's ballooning debt levels. That's right, but its starting point also is very low. The Chinese central government debt accounted for about 20% of GDP. Even if the relaxing estimate standard, and the local government debt, also can reach about 50%. In view of the American debt is about 100% of GDP, Japan is 230%, internationally, China's problems seem not so worrying. Consider to almost all Chinese debt are all internal debt to this point, the situation is even more so, therefore may not happen BiZhai Greek foreign creditors of the crisis. Mounting debt, low growth in the us, Europe and Japan but will hope China's problems can occur in them. see more:Global civil servants year-end bonus each different: the United States cold Chen British generous
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