China after the boom

[TexasTowelie]

After three decades of spectacular growth, the Chinese economy is at a turning point.

The plunge in the stock market that has wiped trillions of dollars from the value of China's listed companies is just one part of the story. More significant is the fact that growth is now at its lowest level for 24 years and is forecast to fall further.

Foreign trade is down by 6 percent and export markets are depressed. Industrial profits are falling and the manufacturing sector is in a funk. Capital is flooding out of the country and foreign exchange reserves are dropping.

The Chinese economy is not at risk of imminent collapse, but the coming years will certainly represent a break from the past decades. The factors responsible for the current slowdown have their origins in the very things that underpinned China's emergence as a world economic power.

Read more: http://socialistworker.org/2015/08/04/china-after-the-boom

[Warpy]

1. Krugman had an article last week

about how the Chinese leaders don't have a clue what to do next. He did point out that the country is in good shape and has been moving in the right direction by raising wages and prospects, but that everything is jeopardized by the popping of the stock market bubble.

We'll see if they're any wiser than we are. I sincerely hope so, for the sakes of over a billion people.

[Recursion]

2. The Chinese stock market is still up 40% over a year ago

That's hardly being "wiped out".

[fasttense]

3. Well even Communist countries have severe economic downturns when using capitalism. n/t