Global intelligence firm Stratfor has a video analysis explaining the risks of a Chinese economic slow-down:
“Both investors and countries whose economies are dependent on China start February increasingly worried about the direction of the Chinese economy. Monetary tightening and allocations of resources mean that present growth expectations are unsustainable,” says Stratfor.
Major points of the report:
- Asian investors are worried about the impact of monetary tightening in China on a fragile world economy
- There are conflicting reports from China about lending — slow the bubble, or is economy not ready for cuts to government subsidies?
- Chinese banks are curbing lending
- Big infrastructure projects will require continued lending despite pressure to cut spending
- Exports to the U.S. and Europe are faltering
- Chinese growth figures unreliable — likely inflated –and unsustainable.
- Suppliers to China (raw materials, commodities) could suffer
Here’s the full video:
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