Chinese economy is fragile?

Chinese economy is fragile?
Jan 31, 2008 21:37
ZOEY Points: Join Date: Nov 29, 2004 Status: offline	The news paper says that the recent heavy snow has caused great damage to China's economy. The total direct economic loss has reached 32.67 billion yuan. Those experts estimate that heavy snow will make GDP growth rate go down 0.5 percent and CPI surge 0.3 percent. It is said that the CPI in January is expected to reach 6.5 percent. On the other and, the exports and trade surplus will also be reduced. Some foreign media also reported and showed their great concern on snow disaster in China. In a report, the author says that the snow storms have shown the vulnerabilities of China' s booming economy. A professor says that the snow crisis has exposed the fragile infrastructure and the government underestimates the impact of the snow storms. What's more, the power shortage has also revealed that the energy policy has some flaws. Is Chinese economy as vulnerable as they said? Will it resume after the snow thawed? How do you estimate the impact of the snow storms on Chinese economy?

Jan 31, 2008 21:37

ZOEY
Points:
Join Date: Nov 29, 2004
Status: offline

The news paper says that the recent heavy snow has caused great damage to China's economy. The total direct economic loss has reached 32.67 billion yuan. Those experts estimate that heavy snow will make GDP growth rate go down 0.5 percent and CPI surge 0.3 percent. It is said that the CPI in January is expected to reach 6.5 percent. On the other and, the exports and trade surplus will also be reduced.

Some foreign media also reported and showed their great concern on snow disaster in China. In a report, the author says that the snow storms have shown the vulnerabilities of China' s booming economy. A professor says that the snow crisis has exposed the fragile infrastructure and the government underestimates the impact of the snow storms. What's more, the power shortage has also revealed that the energy policy has some flaws.

Is Chinese economy as vulnerable as they said? Will it resume after the snow thawed? How do you estimate the impact of the snow storms on Chinese economy?

Feb 1, 2008 20:03	#1
JIMMYB Points: Join Date: Feb 7, 2007 Status: Offline	The snow storms have indeed reflected some problems. As the professor says, infrastructure construction need to be improved.China should invest more in this area. On the issue of energy policy, many foreign investors say that Chinese government should stop intervening in energy production and prices. Market should have the say on this. It sounds reasonable.

Post a Reply to: Chinese economy is fragile?