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REVEALED: 5 things that might destroy China!

Bhaskar News | Aug 12, 2013, 10:26AM IST
  • REVEALED: 5 things that might destroy China!

    China has undoubtedly developed very fast in the last few decades. Though it has emerged as a strong economy but it is equally vulnerable to dangers that can destroy the country in a matter of years.

     

    China is standing at a point where a small issue can rage up a war or can result in a major political crisis. The tiniest catalyst could launch protectionist policies that could send shock waves through the global economy. We bring you five major reasons that can result in destroying the country.

     

    Meanwhile, India and Chinese soldiers solved the face off at border with beer and rosogullahs. According to reports, both the forces had crossed each other at Sikkim. Both of them showed banners to claim that they were on each other’s territory. However, they decided to solve the dispute by extending the hand of friendship.

     

    Click the slides to read…

  • REVEALED: 5 things that might destroy China!

    Rare earths exports could stop

     

    China accounts for 97% of global rare earth production and is said to have 87% of the world's rare earth deposits but in an attempt to curb pollution and protecting its resources, the country began to slow exports of the minerals.

     

    According to critics, China made this move to draw manufacturing to the country, because the restrictions only extended to the rare earth minerals themselves, not products containing rare earths.

     

    This could impact companies around the world since they are used in everything from wind turbines to smartphones.

  • REVEALED: 5 things that might destroy China!

    Inflation

     

    China has set an inflation target of 3.5% and policymakers watch inflation closely but consumer prices have been picking up again and policymakers would not want to see a surge in CPI for a few key reasons.

     

    Rising consumer prices without an accompanying rise in wages could cause civil unrest and policymakers would like to avoid this at all costs. Food prices make up a bigger part of the nation's inflation basket than in developed markets. As the economy slows, a rise in consumer prices limits the ability of the central bank to loosen monetary policy and support growth.

  • REVEALED: 5 things that might destroy China!

    Pollution

     

    We've seen photos of Chinese cities covered in smog. China has admitted that pollution has caused 'cancer villages’. Pollution, through illness, death, and loss of productivity, costs the economy over $100 billion a year. China is set to spend hundreds of billions of dollars to lower pollution and is handing out the death penalty to the worst offenders. 

  • REVEALED: 5 things that might destroy China!

    China and Japan could go to war

     

    The last year saw Sino-Japanese relations deteriorate as the dispute over the Senkaku/Diaoyu islands began to heat up. While the two nations have avoided an outright war, some say this could be a possibility. 

  • REVEALED: 5 things that might destroy China!

    Corruption could cause the collapse of the Party and state

     

    Chinese policymakers are working overtime to ensure that locals know they are serious about tackling corruption. They have cracked down on gift giving and are trying to make an example of corrupt policymakers like former Chongquing party chief Bo Xilai.