“A journey of a thousand miles begins with a single step.” -Laoze
It was not so long ago since China was referred to as the “sleeping giant.” Its secluded existence and its rich culture which has been passed down to thousands of generations, known only to those within, has just been broken free a few decades ago.
After the giant opened its door to world, opportunities swiftly entered. One of the many which are given the opportunity to show itself to the outside world is the Yuan. The Chinese currency which may be literally translated as “round object” is originally a round and silver coin used in Qing Dynasty. It slowly made a scene after its debut by showing a very promising growth.
But according to the most recent news,its growth had come to a slow pace. One of the main issue which surrounds the change is the economic slow-down of China. The import slid last month and the cooling of industrial production are the main contributors of this unfriendly situation. The targeted economic growth, which is the lowest in 22 years, may not be met.
However, interventions may be put into action. According to Chinese Premier Wen Jibao, “ Be it monetary or fiscal, we still have ample strength,” The strength which amounts to a billion yuan will be used for preemptive measures which will be directed to fight against bad loans and shackle the inflation.
Another issue is currently swerving like a vulture over the Chinese economy. News of “shadow” banks are arising and may result to a social unrest. The victims are continuously increasing and the public is quickly losing its trust to investments thus slowing the money circulation. Private capitals are now stagnant because of this.
Despite the pessimistic prediction of experts and alarming incidents, the Chinese Premier is still confident that the economic development will go as planned.