2010年3月28日星期日

About China's Economy in 2010

I am very worried about China's economy in 2010. Every one knows that China's GDP increases by 10% last year. 2009 is the year when the global economy crisis is most serious. GDP in every other countries except China decreased a lot. Why only China is increasing? There must be some problem in it.Every thing can't be away from the world rule including China. Then I found that most of China's GDP comes from those fundamental building like real estate, freeway, port and rail roads. But where? They are western area of China. Those places are less developed and don't need such many things. Put a lot of funds in these area will lead to very serious production overcapacity. Although it will help to increase GDP in short amount of time. But the problem of overcapacity will appear very soon. The government should put a lot of money in increasing wages of citizens to increase consumption. So year 2010 will be very complex for China.

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