ChineseEconomy in Danger-similar 2 other nations like Japan?

[Jack MacKelly]

I've been reading a few reports from CNN, the BBC and other Western sources. They praise how the Chinese have built their economy up, improved their industry and helped the nation grow, many Westren newsources say how good it has been for the Chinese and talk about how the China economy has done so well.

However the Chinese Economy may face serious dangers, levels of un-checked growth could be bad for the Economy as the nation expands to quickly. Prices will rise and the cost of living will climb to much, inflation could cause serious problems. It happened in the Japan economy when the bubble burst, and now they are paying the price of economic stagnation. The birth rates are an issue, Japan and some other nations also have very low birth rates. Without a young work force to keep jobs moving, drive the taxis, young people to work in shops, a young workforce in the industry then the economy won't continue moving. A lack of a young workforce will have a huge impact on the health system as an elderly population looms and pension payments could go bust, one way to solve this is through immigration with more young people. Currency could also become a problem, today the dollar is weak and rising debts are making it unstable and it is causing problems for many folks in the US and around the world. Things are ok for China because the currency is level pegged to the dollar, but what about 2008 when the currency is allowed float freely. Will it have the same problems that other Asian nations faced during the currency crash and Asian cash crisis of past years ?

Is China destined to repeat the same errors made by other nations, or will it learn from their mistakes ?

what do u say ?

[gato]

However the Chinese Economy may face serious dangers, levels of un-checked growth could be bad for the Economy as the nation expands to quickly. Prices will rise and the cost of living will climb to much, inflation could cause serious problems.

I don't think China's problem is growth. Rather it's unemployment, inequality between regions (partly due to government policy), and inefficient government control of the economy leading to waste.

Before people get carried with China's economic prowess, consider these per capita GDP numbers:

http://www.cia.gov/cia/publications/factbook/

China: purchasing power parity - $5,000 (2004 est.)

Taiwan: purchasing power parity - $23,400 (2004 est.)

Japan: purchasing power parity - $28,200 (2004 est.)

Korea: purchasing power parity - $17,800 (2004 est.)

Thailand:purchasing power parity - $7,400 (2004 est.)

Indonesia: purchasing power parity - $3,200 (2004 est.)

Russia: purchasing power parity - $8,900 (2004 est.)

Poland: purchasing power parity - $11,100 (2004 est.)

Bulgaria: purchasing power parity - $7,600 (2004 est.)

Mexico: purchasing power parity - $9,000 (2004 est.)