China should not only focus on investment eccesively
Posted on Apr-04-2009· by china investor
China should not only focus on investment eccesively
China can only solve short-term problem by depending on investment, long-term prosperity must rely on their own spending power, and over-investment would be made null and void for the future of Chinese extreme cases and lack of sufficient strength, under the current circumstances, the wealth put into the pockets of the people may be more important than deposited to the officials GDP figure for the future efficiency of China’s survival, in the case of excess capacity, the importance of spending power may be higher than the investment capacity.
If inflation reach a certain degree, rising oil prices will make shipping toys from China lost the competition, the whole world to re-distribute of the industry chain, maybe China having accumulated a huge production capacity would become a burden.
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