Business

Chinese Economy Must Slow Down
by Milota Sidorova

With the quarter growth of 10.7 percent (final quarter of 2009), China is challenging the position of the second biggest economy in the world. That position is currently held by Japan, but although China has been expanding let's say more than furious way, it has already received critics and warnings it may go wrong this time. The economy may be overheating. With steeply rising industrial index, consumer prices, level of urbanization and infrastructure making, for us Europeans almost inhuman working conditions and pace and long time weak currency improving the export, there is no doubt China came to such results.Now it seems to be backing from the expansion. Last Thursday th! e People's Bank of China raised the interest rates to prevent banks from irresponsible lending. International Monetary Fund sent warning the overheating economy may end up in the bubble that caused the crisis within the U.S.Banks all over the country must raise their capital to prevent from such bubble and risk of bad debts. The steps have already been reflected on Hong Kong's Hang Seng index that was down 1.99 percent. Beijing is considering making the currency (yuan) more powerful that in way lower yields on export, but may be a considerable stabilization tool. Although slowing down process seems to be inevitable, Chinese officials deny they were preventing the banks from lending. The GDP growth was the highest since the fourth quarter of 2007 when the number finished on 11.2 percent. According IHS Global Insight, China will probably grow by 9.9 percent and surely will take Japan's place before the end of this year.

related story (sgx16212): http://www.france24.com/en/20100121-economy-china-boom-provo...

by Milota Sidorova for SigEx Ventures (http://sigexventures.com)

SigEx Ventures's matrix of properties are quickly becoming leaders in digital telebroadcasting, free content delivery allowing people to easily talk, view, upload and share through free online TV broadcasting, free unlimited global calls, video blogs and SMS. SigEx Ventures invests in projects deploying "free" to add-on royalty revenue models

posted by Blog TechSource @ 11:56 PM