China is the world’s most populous country,
and its economy is second only to the United States’. But despite these indicators of
a prosperous future, China has several looming problems ahead: a stagnate economy, a shrinking
workforce, and a growing elderly population. So is the “Sleeping Giant” on the verge
of a dangerous economic collapse? What’s at stake for China? Since the 1970s, China has instituted a “one-child”
only policy. This was to help cope with poverty problems caused by overpopulation. However,
a side effect is that today there are fewer young people to take care of a massive aging
generation. In Shanghai, one expert believes that in five years, a third of the city’s
residents will be over the age of 59. With a smaller working age population, the workforce
is slowly shrinking. China’s economy has also suffered in recent
years. In 2008, their part in the global recession was coupled with a massive earthquake. In
response to those crises, the government instituted federal work programs, and housing projects.
Those stimulated growth, but also came with their own problems. Today the surplus of housing
is causing property prices to drop, and the housing market is, quote, “comatose”.
This is especially dangerous as some economists estimate that China’s real estate industry
accounts for about 20% of their national GDP. Additionally, the Chinese banking system is
in need of some policy changes, and is often secretive. According to the International
Monetary Fund, “off-balance sheet activities” and “informal credit markets” have made
China’s financial sector vulnerable. Their report called for increased oversight and
transparency into the “shadow banking” world. The Brookings Institution reported
that in 2013, shadow banking accounted for around 43% of China’s GDP. The country’s growth has slowed to its weakest
point in 24 years – 7.4% in 2014. Consumer confidence is weak, and municipal debts remain
“dangerously high”, according to experts. Currently, one American consulting firm estimated
that China’s debt to GDP ratio is at 282%. Many agree that China is in danger of a major
economic setback. Economists note that, in order for their recovery to be less painful,
their economic woes must be addressed as soon as possible. Despite their status as a wealthy
superpower, China will face major unavoidable money problems in the coming years. China isn’t the only country with a lot
of debt. To learn about the situation in the United States, take a look at our video here.
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100 thoughts on “Is China’s Economy On The Verge Of Collapse?”

  1. It is now in two years later, China economy is still growing steadily, so keep predicting when China economy will collapse.

  2. LOL, "stagnant economy" too funny! From 2013 till 2016 the Chinese economy grew by 2.5 trillion dollars. That's the entire size of the Indian economy. That's right, every couple of years the Chinese economy adds new economy growth the size of the entire Indian economy. And this 7% growth rate is sustainable according to the World Bank and the IMF.

  3. In 2000 China's nominal GDP was 1/5 that of the US. Now is 2/3. Based on this trajectory China will surpass USA to become world's number one economy within a decade.

  4. Oh, wow, 7.4%?!?!?!?!?! WOW! THAT'S SCARY LOW! That's like…..faster than the absolute faster year in American history? Wow, they are going to collapse any day now, guys!

  5. If Chinese economy collapses how will it defeat USA in WW3? Also will the US economy also collapse? Both wont collapse. Its got to be one.

  6. China will always be great for the rest of the 21st century. Of course, there are other evil thinking people wishing for it to die..

  7. Chinese regulations and taxes…if they continue Austrian School of economy…
    it shouldn't be no problems to avoid the crisis.

  8. 3 years later … looks like it's still going strong. lol they been predicting China's economic downfall for like 30 years now.

  9. As long as the PRC government has foreign cash reserves, their economy will not crash because they can keep pumping money into their markets to keep it going. Overall, the economy which is heavily dependent on exports has been slowing down quite a bit causing the economy to slow down and now it has become too reliant on construction to keep GDP up.

    So while the economy is transferring to a service economy, overall it is not going in the right direction and time will tell if these cash influxes are enough to keep it all afloat or will the government bailout stop one day because there is no foreign currency left to back up the RMB. When that happens, the bubble will burst on the housing and construction first, maybe the stock market, and many industries currently being propped up by the government will crash and China will go into a major recession.

    So while it is not clear how long it will take for that to happen (if ever) these videos are not necessarily incorrect, but they cannot predict a time frame so checking back here years later and saying it was wrong does not make the contents of the video wrong.

    As of 2018, cash is still being pumped into the economy with no end in sight, but the government appears ready to go the whole way. I don't know if they can make enough money in trade in order to keep doing this indefinitely though. It's a like a race against time.

    It is true that the economy is being faked though. The question is how long can they keep the facade up.

  10. I am South Asian, I know China is a rival but I hope their economy doesn't collapse, we are all people after all! (maybe get rid of the dictatorship tho, lol)

  11. For those who are evil will be destroyed by US
    "We must take strong defensive actions to protect America's leadership in technology and innovation against the unprecedented threat posed by China's theft of our intellectual property, the forced transfer of American technology and its cyber attacks on our computer networks,"
    "These tariffs are essential to preventing further unfair transfers of American technology and intellectual property to red China,"

  12. If America has a deficit then its time for all Government employee,s to take a big pay cut to even things out NOW !

  13. Many have said about the collapse of communist china’s economy but it could only come with world united to do the real judgement of communist china bankruptcy.

  14. why every video with fast forward scenes about china's wealthy economy puts hong kong? IT IS DIFFERENT. ah, i know why. Because china does not have any other good cities

  15. woah woah woah… china has a huge work force and growing the average age in china was 37 yrs, which isnt horrible, they can work for like 10-20 yrs so china wont have to worry till then

  16. true but China is the biggest liar in the world and China become the most arrogant country in the world. Chinese has no other argument but compare itself to the US And demonize US instead of replying with legitimate answer. I am Chinese but ran away from China and I want to uncover the real face of China. There are lot of Fake comments and profile all over the internet from communist puppets. Never believe what China says but what China does. Ccp governs in a style of fake data, slogan, cheats investor. You get the essence of their faking patterns. You are a great man to talk about loudly which is not allowed anywhere else ccp are evil. China blocks youtube and foreign social media. People need VPN in China to watch this video. No international law authorizes China to block foreign social media, China blocks everything they want without any reason but giving advantages to their own companies and medias and blame other countries when they do the same. Many dictators sit at UN like China.

  17. Watching this video in 2019 felt so lucky we were in the past few years, I am glad I am still alive in China. Thanks

  18. China is communist . Fake reports, fake numbers about economy. I lived 34 years in a communist country and I know how they do. China is communist and cannot survive .

  19. Communist playing capitalism, is like mixing water and oil. they don't mix . Back on the 60 ts. Mr. Krushov (or something similar) The Soviet Whatever promised that communism will bury the capitalism. Communist China is doing Wright That. WAKE -UP BUY AMERICAN MADE. LETS UNDERTAKE THE STUPID COMMUNISM FOR GOOD.

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