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Ten Problems Hindering China’s Economy

An article listing ten problems that will further hinder China’s economy was widespread on the Internet. It claimed that the next two years will be the most challenging for China, due to the following problems:

One, exports: the main driver for China’s economic growth will no longer be as effective as before. China’s strategy of “low prices to occupy the world” is no longer in effect. Without low prices, exports will not be booming; without booming exports, China’s economy is losing its growth lever.

Two, high taxes: The high corporate tax system has suppressed businesses’ creativity. Whether a corporation makes money or not, the tax is always there.

Three, monopolies: Monopolies have shut down the door on innovation. In any business where a company has a monopoly or in one with enormous government administrative offices, it is very difficult for someone to create a small business.

The other seven problems include the following: It has proven difficult to generate an increase in demand for domestic consumption; the government is more conscious about return on investment and steers away from the old practice of making a large investment without considering the return; the real estate industry is hopeless; China does not have a good system to encourage people to innovate; the government’s functions prohibit further economic growth; high tolls on the roads, the high expense of freight train shipping, and the high cost to obtain the needed certificates from government offices all contribute to blocking the free flow of the economy; and also, people are losing their confidence in China’s economy.

Source:, March 10, 2016