China’s economic boom is eventually going to come to a stop according to a top Chinese think-tank that frequently advices the government on economic issues. The officials are saying that if China is seeking to become a world power they have to let the world in. But on the opposing side many officials don’t want to make any changes because China’s economy has been able to survive despite the recent financial crisis around the world. This makes the conservatives within Beijing to oppose any change to insure security. The problem is however, that things are changing so they need to make changes at this point. To keep its growth rate sustained China will have to make some economic reforms.
By Sarah Bilton
This fact actually scares me because the U.S. is so dependent on imports from China and China's investment in our government debt. If China has to make economic reforms, that could mean that the cost of its imports to the U.S. could increase or that it will start to diversify it's investments and pull out of owning U.S treasuries. I think that the U.S should keep this in mind when making economic decisions in the next few months.
ReplyDeleteIn business, especially when talking about the economics of an entire country, risk is necessary. It's true that China's situation could negatively affect the US economy if they decide to make reforms, at least for a time. However, competition is another necessary and healthy part of any economy and if China continues to grow I think that in the end it would prompt the US to make reforms and grow as well rather than be so dependent on one nation.
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