I want to talk about the worries about the future of China .
Firstly , we can not know the true statistics of Chinese economic growth. For example, we can get the information of GDP on the CCTV news. Although it says that GDP is increasing at a rate of 6% annually , we can not know any details about the way of calculation .The department of statistics manage to modify the number instead of finding economic problem.
Over the past few years , the government pours too much money to the local loans. As a consequence, housing prices surge abruptly in many parts of China . Actually, this form of economic stimulation is destroying the manufacturing industry. More and more private companies go broke for the increasing cost of land and labour. What’s more , local governments prefer to earn money by house in the short term ,instead of improving industry. The lack of land and governmental support make it difficult for new companies to establish and survive . Once the housing bubble erupts , the economy is unlikely to recover in the future . Japanese economic recovery depends on its high quality products .
This month, there is Peer-to-Peer argument on the Internet. Massive people lose their huge amounts of money . Peer-to-Peer is a fake which has the government bank background. With the support from government, people would believe that their money in Peer-to-Peer agencies is safe. However, banks give bad debts to Peer-to-Peer agencies to ensure the security of debts from government. Moreover, after the bubble collapse happens , the government uses unbelievable methods to forbid the victims from protecting their right , such as threat and violence.
It still has lots of topics about the condition. For the weakness of writing for me , I will write it next time.
