चीन की बढ़ती अर्थव्यवस्था के क्या कारण है
Answers
Explanation:
China's economy has been the reason for envy for the developed world. Also, it attracts other emerging markets. With the huge increase in exports and increased investment by the government, crores of people were able to get out of poverty. In this way, China joined the line of global economic superpowers. But recently, there is a cloud of skepticism about this model of development. It is believed that China's economy is neither sustainable nor sustainable. Critics are particularly pointing out that China's inclination towards cheap debt is increasing. However, it started when the financial crisis was at its peak and Beijing adopted a policy of monetary stimulus to avoid it. Between 2008 and 2012, the total debt-to-GDP ratio of China has almost doubled.
If the cash amount was used in a profitable investment, this increase would not have caused much problem. Most of the lucrative private sector, which has many small and medium scale industries, is generally struggling with shortage of cash. At the same time, large and government enterprises and local government enterprises are reaping the benefits of easy loans. They are spending debt in unnecessary projects. Or spending money in areas where there is little profit. The detailed meeting of the 18th Central Committee of the Communist Party of China took place in November last year. The leadership then spoke of giving a greater role to market forces in the country's economy. On this basis, it was proposed to give loans. But so far this improvement has not been shown. Therefore, it has become necessary that China's leadership curb debt growth. If the debt transaction trend is completely uncontrollable, the defaulters' problem in Beijing may deepen, Which will hollow out the financial stability of this country. The good thing is that given the current situation, the Chinese government has taken several steps.