In the words of noted political and economic commentator – ‘Minxin Pei' – “The Chinese bubble is about to burst.” The manifestation of inflated Chinese statistics of imports as well as exports (in some sectors) has been dwindling over the rope of uncertainty.
Why?
- China’s import buddy – Australia, who supplied iron ore and coal like an obedient colony to his imperialist master, has been shrinking its resource exports. (45% drop in coal imports from Australia to China).
- Greece, although saw the arrival of a young, charming and leftist Alexis Tsipras regime is prepared for an exit from EU, which in turn is decelerating the revival process of EU nations and that's why despite sanctions on Russia, China couldn’t milk the opportunity of increasing exports to EU.
- A dopy increase in total debt of up to $17 trillion is haunting banking sector of China.
- A shoddy experiment of permeating democracy in local government with financial autonomy has earned him a debt of almost 40% of GDP which even the proposed 3 trillion Yuan bond swap agreement couldn’t digest.
-Emergence of multiple export oriented power centers like India, USA, Japan, Indonesia etc has demonopolised China’s import machinery and has opened avenues of negotiation for its suppliers like Australia, Africa, Venezuela, Russia etc.
- China’s import buddy – Australia, who supplied iron ore and coal like an obedient colony to his imperialist master, has been shrinking its resource exports. (45% drop in coal imports from Australia to China).
- Greece, although saw the arrival of a young, charming and leftist Alexis Tsipras regime is prepared for an exit from EU, which in turn is decelerating the revival process of EU nations and that's why despite sanctions on Russia, China couldn’t milk the opportunity of increasing exports to EU.
- A dopy increase in total debt of up to $17 trillion is haunting banking sector of China.
- A shoddy experiment of permeating democracy in local government with financial autonomy has earned him a debt of almost 40% of GDP which even the proposed 3 trillion Yuan bond swap agreement couldn’t digest.
-Emergence of multiple export oriented power centers like India, USA, Japan, Indonesia etc has demonopolised China’s import machinery and has opened avenues of negotiation for its suppliers like Australia, Africa, Venezuela, Russia etc.
Gone are the days when China could boast of its enlarged chest filled up with money earned out of exports. The equilibrium of import and export has been destabilized. Merely depending on exports for economic growth sidelining developmental initiatives is not feasible for an autocratic rule. Wonder what happens when the people of ‘undemocratic’ China would realize the income gaps after the sun of inflated statistics would stop shining.
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