WASHINGTON — Some economists and analysts say that China is headed toward a potentially disastrous economic “coma”.
Reuters reports China is following the Japanese model, which led to a significant economic boon for years. However, Japan’s export-heavy economy collapsed and only now is Japan starting to recover about 20 years later.
As we at AIM reported earlier, much of the China fear-mongering was due to China’s military build-up, without considering the demographics and disastrous economic policies of the one-party country.
It also does not help that China continues to bully its neighbors like Vietnam and waste its “soft power” and diplomatic and cultural influence on a consistent basis.
China continues to rely heavily on exports for economic growth and to fuel its industry-heavy economy. It has not diversified enough or as quickly to become a post-industrial economy, where manufacturing is not as important as goods and services (i.e. banking, stock markets). The Chinese economy is slowing down and sparking fears in the West.
With a rapidly aging population that surpasses Japan’s current demographic woes, Chinese workers are not getting younger. It is a product of decades-long “one-child policy” by the Chinese Communist government implemented in the late 1970s.
Is it the end of the short-lived Chinese dragon?