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<< Back China's economic growth has returned to a stable level.
How should we view China's overall economy in the past seven years? Basically, it has been growing at a rate as high as 10% and downing moderately to 5-6% in the future. Countries and regions like Japan, South Korea, Taiwan, Hong Kong and Singapore have had similar experience in their economic growth.
CLIK hold that three factors may lead to the above change in growth rate. First, there is a historical demand peak in some industries like real estate and key industrial products including coal, steel, etc. The peak has emerged when the demand is the highest or at the highest growth rate in the entire process of industrialization and urbanization.
Second, the total population structure has changed.
Third, the environment has been exploited to the extent that the emergence of smog is prevailing. In this case, it’s natural that China has witnessed the transition from high economic growth to a moderate one. None of the existing economic Cycle Theories can explain the transition as it is unique in East Asian fast growing economies competing fiercely.
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