Latest News:  
Beijing   Sunny    24 / 12 ℃  City Forecast

English>>China Business

An end to the era of double-digit growth

By Ed Zhang  (China Daily)

13:38, September 28, 2012

There was a time when nobody questioned China's double-digit growth, not even in the wake of the global financial crisis in 2008.

But at a recent roundtable of economists and business commentators sponsored by the Shanghai University of Economics and Finance, that era appeared to be over as serious questions were raised about how fast the Chinese economy can continue to grow and for how long.

Attendees argued that a period of transition from export-led to consumer-led growth has begun involving an inevitable economic slowdown, and said the most effective measure the government could take would be to launch more government-led capital investment projects.

Ye Tan, a leading business commentator, described the environment for Chinese companies as being like "frogs trying to swim in warm water" - they face a long and painful death.

They are not making profits and have little idea about their future. The only thing they can do is to offer increasingly lower prices in an attempt to compete for limited orders, she added.

There is a growing cash flow problem among many companies, which are not making enough profit to pay back debts or reinvest, she said. Most of these companies used to engage in the mass production of export products but are now facing dwindling orders and a rising renminbi.

"I say China is bidding farewell to double-digit growth, because many industries will no longer be able to double their size in the course of a decade," she said.

【1】 【2】

News we recommend:
Toll fee exemption boosts auto rentals GDP may slow for 9th quarter China-ASEAN Expo increases trade volume
Expo gives evidence of manufacturing shift Chinese go online to buy latest iPhone Chinese winemakers demand anti-dumping
Logistics co-op needed in China, ASEAN  The global use of yuan increases New Deal to Boost Consumption


Leave your comment0 comments

  1. Name


Selections for you

  1. Editor's choice: Chinese Air Force test pilots

  2. North Korea's 'iPad' revealed

  3. New Deal to Boost Consumption

  4. Beigong Forest Park: Easy Escape

  5. Zhang Ziyi covers OK Jingcai magazine

  6. Spectacular scenery of dusk around world

Most Popular


  1. Human resources need more investment
  2. Japan should know facts rather than rhetoric prevail
  3. Be vigilant against resurgence of militarism in Japan
  4. Easy times gone for foreign firms in China
  5. Noda gov't in hot water as LDP eyes comeback
  6. White paper makes watertight case for Diaoyu claim
  7. Intl firms should learn from Chinese counterparts
  8. Aircraft carrier brings timely morale boost
  9. Palestine faces difficulties amid Arab upheaval
  10. Theft of Diaoyu Islands risks China-Japan trade ties

What's happening in China

High-speed rail linking Henan, Wuhan goes into operation

  1. Troop protect border, fisheries
  2. Vanishing languages saved for posterity
  3. Frontier patrols keep lid on rising trafficking
  4. Reading room available in every Chinese village
  5. China on orange alert for gales from typhoon

China Features

  1. Culture invasion? Starbucks kisses Buddha
  2. Public should enjoy more 'tourism benefits'
  3. Ancient villages face losing their souls
  4. Economic circles key to Sino-Japan relations
  5. How to pan for gold in cultural investment fever

PD Online Data

  1. Ministry of Water Resources
  2. Ministry of Railways
  3. People's Bank of China
  4. Ministry of Health
  5. Ministry of Culture