5 wrong ideas about Chinese economy

Wrong ideas about Chinese economy

Most of Westerns leaders think the Chinese economy is breaking down. Chinese market is different and businessmen have to understand it doesn’t work in the same way than they know. Indeed, entrepreneurship in China is special and is said to be out of rules, totally disjointed, irrational and the worst system ever seen in the world.

Obviously, Chinese methods look to be confusing. Nevertheless, the government doesn’t pay attention to criticisms and western minds. They take advantage of the yuan’s devaluations to be more competitive on the market.

However, according to someone who lived in China for many years, all of those minds are wrong. Chinese economy’s future is promising and set up five given ideas about this subject.

  1. Chinese economy is a fake

China is said not to have a solid basis concerning it economy. Indeed, the Asian country seems to benefit from cheapest way to succeed in launching its business, looks to be not a scary competitor on the market’s world and doesn’t get strategy’s development efficient. China doesn’t have enough knowledge regarding the market’s World’s rules. Therefore, many private industries are borning in China, and government invests some money in order to allow them to innovate on the market and become more competitive.

Those funds enable the country to gain in stability and organization. In addition, this share allows a companies’ industrialization and urbanization. China wants to line up and even surpass on the other countries’ economy. Since 2013, Chinese government tries to create many areas for new markets, innovations, authentic ideas and invests to reach this goal. Actually, private companies which are making out, convert Chinese consumers to purchase their products and promote their brands in order to increase the audience.


  1. China has lack of innovating ideas


As said above, Chinese government encourages the startups’ entrepreneurship to innovate. Many young companies’ birth were noticed this last years which try to offer authentic services on the Chinese market. Nevertheless, while a growing market, Western countries’ leaders think these stratups have lack of capacity to innovate and bit of its are uneffective and don’t make out.

Nevertheless, the government is investing in technological stratups whose rate is increasing on the market. Moreover, China wants to create the new Silicon Valley in the North of Beijing in order to welcome startups surrounded by Chinese giants such as Baidu, Weibo and others.

In addition, more and more companies are more valuated since last year such as Alibaba or Xiaomi which is considered as the emerging sector. The government is giving funds too, into scolarship involving one million science and engeenering graduates a year.

Read more: A hard landing for China’s economy?


  1. Chinese environment is too much damaged to be preserved now


China is said to be very dirty, doesn’t know the environment rules, and doesn’t have funds to preserve the nature. That’s true, they don’t begin in the best way to launch their industry. Actually, Chinese are more and more conscious of the pollution’s troubles. Moreover, the government is setting important measures to reduce smoggy in order to decrease the air and water pollution in the country and especially to protect the population’s health. Leadership in China creates new jobs so that clean up cities and take in charge energy supplies.

Furthermore: What is China doing to tackle its air pollution?

  1. Important inefficient investment and debts are rising

These last years, Chinese economy is led by buildings, roads, infrastructures. That’s why, fuels spending are increasing which involve China’s debt’s rising.  While yuan’s devaluation, debt’s China’s economy quadrupled and reached 28,2 trillion the last year.

However, China is totally able to fight against the crisis and it debt is less important than it Western neighbors. Indeed, crisis impact only a thin Chinese market’s segment and troubles couldn’t be worst. Economy in China must grow, slowly but surely.

Then, Chinese companies’ activity is increasing and they represent more than 60 percent of Chinese market cap. The stock market came down from 150 to 40 percent the last year. This low economy involves a consumption decreasing. China has to be patient.

  1. Gaps between social classes

The Chinese economy growth created differences of the standard of living between various social classes and especially from region to another. Indeed, Government maintains the entrepreneurship and tries to boost the country’s economy thanks to many reforms. Therefore, many gaps appeared. While rich people become richer, middle and low classes meet difficulties to follow this rythm.

In addition, many people who are living in remote areas in China, can’t benefit to the education and health care which are not the only troubles. In order to solve its, Chinese population tries to imitate Western countries and creates social aids to be fairer within the country.

To sum up, most of Western economy’s leaders have preconcived ideas about Chinese development. Actually, even if China still has to progress but it the economy is growing up. The country market is more and more efficient. Then, many Chinese companies are making out among Western giants.


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