Is China destined to face a financial crisis?
In recent years, economists and analysts alike have pointed to China as the economic superpower, the nation after who many should follow. But, some question whether the seemingly unstoppable giant is, in fact, destined to experience a crisis of its own.
“I don’t doubt for a second that China will be a major economic superpower with an increasingly influential role in the global economy. In many respects, it already is a superpower. But that doesn’t mean the economy is free from problems, a good number of them created by the very statist system lauded by pundits in the U.S. and Europe. And in my opinion, if China doesn’t change course, and in a big way, the country will experience an economic crisis,” writes Michael Schuman in Time magazine.
This view is shared by the authors of a new report by the World Bank, according to the New York Times. The report, which was published by the World Bank’s Development Research Center, advises China to move toward a market economy and encourage private enterprise.
“As remarkable as China’s growth has been over the past three decades, the study suggests that the country’s development pattern has been uneven and is unsustainable. The government should make significant changes, the researchers contend in the report – called China 2030.