What Will Happen To China In Future
Will China Continue To Grow?
Does China need the West in future? Chinese stock markets are booming. Is it sustainable investor growth or hype?
Europe is facing deep recession this year and possibly next. USA and the Americas face long business disruption due to pandemic.
China has the African continent wrapped up, much of Asia and not least, 1.4 billion people in their own domestic marketplace. The services sector in China is growing at fastest pace in a decade. The UKs economy is built on the services sector but China has a largely untapped market to generate several percentage points more GDP. The West wants to sell into the Chinese marketplace for a bigger piece of the action. Arguably the west needs China now much more than China needs the West.
China needs the west to grow faster but does not need the west to grow fast. The stock market in China has not fallen this year. It has grown 15%. It is now at its highest level in 5 years. The Chinese economy is still forecast to grow this year. Most countries will stay in recession this year.
As China turns to celebrate 100 years of communism it ironically has a richer future by embracing capitalism more than the West does. The west is turning to state funded economic growth to get through pandemic at the time that China could put the burners on economic growth based on buying stuff!