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China Fever: The Worst is Over?

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TAIPEI, Taiwan (May 11) – Are the ’emergency brake’ plans that the Chinese government has going to have as big an impact as expected? The restrictions that are being imposed on such basic economical necessities as bank loans, investments in cement, steel and aluminium are needed to calm down the countries runaway economy. Since the […]

TAIPEI, Taiwan (May 11) – Are the ’emergency brake’ plans that the Chinese government has going to have as big an impact as expected? The restrictions that are being imposed on such basic economical necessities as bank loans, investments in cement, steel and aluminium are needed to calm down the countries runaway economy. Since the country’s first economic reforms were introduced in 1978 the average economic growth has been 9.4% per year. The Chinese economy has increased in size tenfold since 1978 from US$ 147.3 billion to US$ 1.4 trillion last year, while its trade volume grew from US$ 20.6 billion, 25 years ago, to US$ 851.2 billion last year. Now the country’s overheating economy has the potential of scaring away investors – notably those from Taiwan, who are starting to prefer investing in their own country again.
If China manages to get a firm grip on the economic happenings, a far smoother and safer growth will be possible. (MH)

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