Question

1. Should other countries be concerned about the potential for Chinese economic problems? Which ones?

2. Is the country caught between capitalism or communism? Is this just a Chinese cultural thing?

Answer 1

1. As Chinese economy is the second largest in the world, many other countries are attached to it and any economical slow down in Chinese economy will definitely affect other countries including the USA. Chinese economy now has the power to pull other economies down with it, so other countries must be concerned about Chinese economic problems.

Problems that can be specified are-

A) Trade Slowdown- For many countries including the USA, China is the most important importer and trade works as a direct link between China and the other country. However, if China economy slows down, it probably will decrease it's import of foreign products including those made in USA, affecting the economy of the other country as well.

B) Business organization- Many of foreign countries get large number of total Revenue from it's office branches situated in China. The Deceleration of growth in China can badly affect those MNCs and will cause their stocks to fall.