Question

The article refers to the Chinese economy as one which is “overheating”. Outline and explain ONE supply side and ONE demand side measure that might help China manage its growth rate to prevent this happening.

Word Limit: 200 words

As well as this, after thirty years of rapid economic growth in China, the Chinese government was trying to manage its growth so as to prevent overheating in the economy.

Answer 1

The article refers to the Chinese economy as one which is overheating. It means that the Chinese economy is doing quantitatively very high production in the economy and it will show their presence in the global platform.

In the context of the Chinese economy, the concept of overheating is related to the booming of the economy in productive efficiency.

The one supply-side reason is that the quantitative approach at a lower price is because of the skilled labourers and cheap raw material.

The one demand-side reason is that there is a huge demand in the global economy because of its reasonable cost.

After the 30 years of rapid economic growth in China, the Chinese government was trying to manage its growth so as to prevent overheating in the economy. This statement is also related to controlling the scenario of the economy to protect the domestic industries and to expand the business as per the qualitative approach also.

Therefore it is true to set that Chinese economy is facing a problem of overheating but here the cause is not that there is lacking productive efficiency but yes it is the locking of the uncontrollable growth and non-sustainability because if any column is not working on the sustainability concept then after severe the future is not stable therefore it is a problem for the Chinese economy and the government is working to control the overheating problem