Is the Chinese economy overheating?
Over the last few weeks it has become apparent that previous concerns about a lack of growth in the Chinese economy have been overtaken by concerns that the country could be on the verge of "overheating". This concern has been voiced by the chairman of the China Construction Bank who has warned of the perils of rapid economic growth amid growing concerns in the international arena.
There is no doubt that China is becoming more and more of a major player in the worldwide economy and concerns about the state of the Chinese economy do not bode well for the immediate future. Indeed, we have even seen the US authorities questioning that the state of the Chinese economy amid concerns that currency fluctuations could also have a detrimental impact on worldwide trade.
It is ironic that against the backdrop of a very difficult worldwide economic environment we are talking about one of the leading economies in the world potentially overheating. This comes at a time when the UK economy is still struggling to pull clear of the recession and indeed UK finances could hold back any recovery for some time to come. So does China really hold the key to worldwide economic recovery?
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