Living in the world today we have to face a lot of changes that occur on a daily basis. This is precisely why it is extremely important to keep up with the latest business news and pay attention to the situation which the world finds itself today. That being said, even though people are familiar with the situations in their countries of origin, it is much more important to be in the know when it comes to the global situation.
Today we will discuss a very important business news topic – global threats. A lot of people are worried that China is becoming a global threat to the world, but is this fear founded on some reasonable ground? Let’s see what the real situation is.
While sky-high Chinese growth rates seemed to be skyrocketing in previous decades, a lot of people were inclined to believe that this trend will simply continue forever, however the recent situation threw investors off guard as the China experienced decline in growth rates. The latest events seemed to shock the majority of people, but it has only been the question of time when something like that would happen.
In addition to that, numerous experts all seem to agree on one thing, economic booms often experience painful bursts, and every economy that experiences raise will not last forever. Still, somehow people are always taken aback when the high growth rates start to plummet down.
Still, China’s growth even though it is not the same as it used to be, is far from being unstable. In addition to that, the market is changing and the manufacturing-oriented market will soon be coming to an end, because the market and the global economy are ever-changing.
That being said, the country will now have to shift from the export-led, investment-heavy market to a developed model which will be focused on creating service sector jobs. In other words as the China continues accumulating wealth, it will start resembling western-countries and their consumer society and will get in the similar economic situation. This will lead to the rise in consumption, but fall in investment.
That being said China is now on their way to an economic situation many countries in the world are in. What’s the matter is that China seems to be lagging in the development and simply goes through all the phases of economic growth later. Still, having witnessed this same path too many times, we can predict where China will be in economic sense in the next few years or the decade, even.
As it turns out, history often repeats itself and business news seem to be frequently repeating, but this is precisely what makes it easier for economic experts to predict the path to success or failure. Therefore, if you would like to succeed in anything in life, just take a path that you know leads to success. It seems right now that China should pay close attention not to repeat some mistakes others have already made.