Limitations for the China’s Economic Model
1.The institutional structures
2. Structural constraints
3. The rebalancing the economy
4. Transformation of a post-industrial society
Causes of the slowdown: The slowdown in the performance of the Chinese Economy has been variously attributed to: excess capacity due to results of a growth model that is too focused on investment; the accumulation of excessive influence in several sectors of the economy.
Overheated investment: The Chinese economy has an investment rate as a share of GDP of approximately 50%. Many economists argue that this figure is extraordinary. The driving factor why such an investment rates of that level has been productive largely because China needed to meet the three-decade gap in both transport and housing investment.
Rural-urban migration
Cooling exports
Weak consumption
Investment Driven Model
Export-led Growth
Financial Repression
Implications of the Slowdown
Conclusion