SLOWING housing and construction
sectors, huge corporation debt and a protectionist Donald Trump all
threaten China’s good economic times.
That is the warning issued by private-intelligence firm Stratfor which predicts China’s economy is living on borrowed time with Beijing facing a series of internal and external threats.Stratfor, which successfully predicted Europe’s inability to cope with the global financial crisis and the US-jihadi war, warn several factors will impact heavily on Beijing’s economic stability over the next 12 months.
In, China’s Economy: Living on Borrowed Time, Stratfor lead analyst John Minnich predicts China’s housing and construction sectors will begin to slow by next year.
And he warns it is this very industry which holds a lot of the country’s outstanding national corporate debt.
Beijing’s ability to cope with slow construction growth, along with skyrocketing debt, will also be tested in coming months with company defaults and bankruptcies set to spike in 2016, he warns.
A move towards US protectionism, being pushed by President-elect Donald Trump will also add to the growing pressures on the Chinese economy.
http://www.news.com.au/finance/economy/world-economy/how-donald-trump-debt-and-slowing-construction-industry-threatens-chinas-economy/news-story/83cbe3c767e07d74c91273734782b5b7
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