Once again however, Shengxia and Baije do not explain their arguments nor do they show exactly how the Chinese GDP evened out the trade balance with the U.S., nor how it supported the economy of its regional neighbors.
In terms of the elements threatening the future stability of the country and its economy, the authors point out that the Chinese authorities have been quick to identify these threats; they will as such address them in an efficient manner. They will for instance instate regulations capping the levels of loans to be granted to the population with the specific aim of reducing inflation and over-consumption. Examples of such measures include the limitation of the bank loans to a 7.5 million Yuan for the year, and a rumored 0.27% increase in the interest rates. At this stage, it is however unclear what exact measures the officials will take, and if these are drawn from the experience of the United States and other countries in their own dealing with the crisis, or whether they are tailored to the unique characteristics of the Chinese market place. What is however certain is that these limitations will raise difficulties in the path of a free market growth. The capping of the loans will for instance reduce investment opportunities and will as such reduce not only borrowings and debt, but economic growth.
Additionally, there is talk about reducing the current levels of production, with...
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