This article is slightly conservatively biased.
Contributor on The Bipartisan Press
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China is often used as an example of a rapidly growing emerging market. On the surface, it seems like it is among the fastest growing large economies in the world, although, no major economic institution believes this myth. Many economists (and many corporate entities) place China’s real economic growth at 2 points lower than what they actually claim. Furthermore, many independent economists also estimate that China’s economy is 18% beneath what they claim.
China’s ‘economic growth’ is measured by local governments in China. Each year, China conducts a census where it asks local governments how much they’ve earned. They give major incentives for meeting ‘goals’ set up by the party. This system encourages lying, given there is absolutely no enforcing local governments, to tell the truth. China also measures cash-flow instead of economic profitability.
Chinese economists have even admitted they have lied on multiple occasions.
China is also deceiving the world about its debt. According to recent estimates, they have a debt to GDP level of around 300%, which is three times larger than the US’s infamous debt, clocked at around 108% this year, and several times larger than the Italian debt which is 131% of GDP. You cannot remain stable while having such high levels of debt, especially whilst levels of economic growth are decreasing.
China is having other major economic problems, from being forced to bailout important Chinese companies, to having the worst stock market rout since 2015 while having an inflation problem. They are also expected to have .2% less economic growth this quarter, due to President Trump’s trade tariffs. They give a petty excuse of using Macro-Economics to counteract the tariffs, which they are doing as a ploy. There is no way to counter cold hard economic facts.
As Sun Tzu so eloquently stated, “Appear weak when you are strong, and strong when you are weak.”.