China: Circumstances, Intents, Hardships and Risks when Transiting from a Production-Led Economy to one Focused on Consumer
Chinese economy has grown rapidly and substantially for decades, without facing a serious crisis or destabilization and without suffering a correction, but this doesn’t mean that it has definitely avoided corrections. On the contrary, it might signify that a correction is possible anytime, risking t...
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| Format: | Article |
| Language: | ron |
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Institute for World Economy
2016-04-01
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| Series: | Revista de Economie Mondială |
| Subjects: | |
| Online Access: | http://iem.ro/rem/index.php/REM/article/view/431/503 |
| _version_ | 1819202761079652352 |
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| author | Sarmiza Pencea |
| author_facet | Sarmiza Pencea |
| author_sort | Sarmiza Pencea |
| collection | DOAJ |
| description | Chinese economy has grown rapidly and substantially for decades, without facing a serious crisis or destabilization and without suffering a correction, but this doesn’t mean that it has definitely avoided corrections. On the contrary, it might signify that a correction is possible anytime, risking to be the harsher the later it happens. China’s numerous achievements are undeniable, but some of the very mechanisms that have nourished its successes – mainly the distorted price system (relying on controlled, low prices for labour, capital, energy, land, natural resources, national currency, zero pollution costs, etc.) – are the ones which now hinder its further modernization and growth dynamism. Excessively forced to grow very fast, Chinese economy developed structural imbalances and economic bubbles in almost each of its systems. This paper looks at some of the most dangerous economic bubbles and their linkage, as well as at the challenges and risks posed by the Chinese economy transition from export-and-production-led growth, to consumption-driven development. |
| first_indexed | 2024-12-23T04:09:09Z |
| format | Article |
| id | doaj.art-5280544729be4b83baad8dae5b8d2733 |
| institution | Directory Open Access Journal |
| issn | 2343-9521 2343-9521 |
| language | ron |
| last_indexed | 2024-12-23T04:09:09Z |
| publishDate | 2016-04-01 |
| publisher | Institute for World Economy |
| record_format | Article |
| series | Revista de Economie Mondială |
| spelling | doaj.art-5280544729be4b83baad8dae5b8d27332022-12-21T18:00:32ZronInstitute for World EconomyRevista de Economie Mondială2343-95212343-95212016-04-01824063China: Circumstances, Intents, Hardships and Risks when Transiting from a Production-Led Economy to one Focused on ConsumerSarmiza Pencea0Institutul de Economie MondialaChinese economy has grown rapidly and substantially for decades, without facing a serious crisis or destabilization and without suffering a correction, but this doesn’t mean that it has definitely avoided corrections. On the contrary, it might signify that a correction is possible anytime, risking to be the harsher the later it happens. China’s numerous achievements are undeniable, but some of the very mechanisms that have nourished its successes – mainly the distorted price system (relying on controlled, low prices for labour, capital, energy, land, natural resources, national currency, zero pollution costs, etc.) – are the ones which now hinder its further modernization and growth dynamism. Excessively forced to grow very fast, Chinese economy developed structural imbalances and economic bubbles in almost each of its systems. This paper looks at some of the most dangerous economic bubbles and their linkage, as well as at the challenges and risks posed by the Chinese economy transition from export-and-production-led growth, to consumption-driven development.http://iem.ro/rem/index.php/REM/article/view/431/503Chinaeconomic bubbleseconomic rebalancingstructural imbalancesnew normality |
| spellingShingle | Sarmiza Pencea China: Circumstances, Intents, Hardships and Risks when Transiting from a Production-Led Economy to one Focused on Consumer Revista de Economie Mondială China economic bubbles economic rebalancing structural imbalances new normality |
| title | China: Circumstances, Intents, Hardships and Risks when Transiting from a Production-Led Economy to one Focused on Consumer |
| title_full | China: Circumstances, Intents, Hardships and Risks when Transiting from a Production-Led Economy to one Focused on Consumer |
| title_fullStr | China: Circumstances, Intents, Hardships and Risks when Transiting from a Production-Led Economy to one Focused on Consumer |
| title_full_unstemmed | China: Circumstances, Intents, Hardships and Risks when Transiting from a Production-Led Economy to one Focused on Consumer |
| title_short | China: Circumstances, Intents, Hardships and Risks when Transiting from a Production-Led Economy to one Focused on Consumer |
| title_sort | china circumstances intents hardships and risks when transiting from a production led economy to one focused on consumer |
| topic | China economic bubbles economic rebalancing structural imbalances new normality |
| url | http://iem.ro/rem/index.php/REM/article/view/431/503 |
| work_keys_str_mv | AT sarmizapencea chinacircumstancesintentshardshipsandriskswhentransitingfromaproductionledeconomytoonefocusedonconsumer |