China manufacturing continues to slump - 2 views
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John Trang on 30 Sep 12China's economical growth is slowing down. Many economists predict that China'a 10% growth will reduce to 7% or worse. In order for China to fight back they have lowered interest rate in hope of getting people to spend more money. When China lowers their interest rate it is cheaper for people to borrow money from the banks; but the money that isn't used and is stored in the bank will suffer from inflation. This slump might cause a chain reaction that hurt China's economic standing.
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Nageen Mir on 07 Oct 12It's interesting that though China's economy is slowing down, it still has more growth than many other countries. Since China has more of a manufacturing-centered economy, I wonder if this slump may mark the transition to a possible service-oriented economy. In addition to that, maybe the leadership transition in the upcoming months will spur a more dynamic economy in China; thereby preventing a prolonged declining economy.
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Zach Lein on 08 Oct 12I remember discussing in class the fact that the world economy did not used to be so dependent on individual regions and countries doing well economically so that other countries could also do well economically on a global scale. It makes you wonder if an international economy is a good thing or not. To me, this is proof that we are not prepared for a multi-polar world. The United States is used to being THE world power rather than A world power. If at all possible, maybe it would be smart to learn how to coexist as more of an independent nation econonomically once again. Or on the other hand, perhaps that could create a situation where America could potentially be left behind by the other up and coming world powers.