On one hand, China needs to stimulate the economy which shows an increasingly strong trend of slowdown. But on the other hand, due to inflation and fears of another outbreak of the real estate bubble, China cannot make drastic monetary easing. The Beijing government is directly faced with the dilemma of the economic situation.
On the annual important meeting which is closely related to the running of the macro economy PRC expressed that for the present economic situation, the pressure that the economic growth slows down and prices increases co-existed. Such interpretation of the present situation can be equal to a frankly acknowledgment that the country is now in a dilemma.
In Guangdong and Zhejiang provinces, small and medium enterprises go bankrupt one after another. Plus the effects of monetary tightening, these SMEs are subject to the stagnation of exports and the impact of rising wages.
On the other hand, people show great dissatisfaction with the fact that although the prices have become gradually stabilized but remained discontent high prices as well as the high property price. Although the housing prices have been reduced by a small margin, people still believe that there remains large room for the prices to be cut down. At the same time, for most potential buyers, the house is a must, they still stand by to wait for a further decrease of the price of the real estate.
As the policy if limiting purchase of the real estate has been carried out and will be carried out, the real estate industry in China seems to have come up with its turning point and the sluggish of the real estate industry may affect other fields such as the construction industry, the architecture industry and the raw material manufacturing. In fear that the industry which may reap profit too soon may cause another bubble like the real estate industry has done, so the government has shifted the responsibilities of driving the economic growth to the growth of consumption and hopes that it can engine the whole national economy. It can be said that the construction of medium and long-term framework for sustainable economic development has begun.
On the annual important meeting which is closely related to the running of the macro economy PRC expressed that for the present economic situation, the pressure that the economic growth slows down and prices increases co-existed. Such interpretation of the present situation can be equal to a frankly acknowledgment that the country is now in a dilemma.
In Guangdong and Zhejiang provinces, small and medium enterprises go bankrupt one after another. Plus the effects of monetary tightening, these SMEs are subject to the stagnation of exports and the impact of rising wages.
On the other hand, people show great dissatisfaction with the fact that although the prices have become gradually stabilized but remained discontent high prices as well as the high property price. Although the housing prices have been reduced by a small margin, people still believe that there remains large room for the prices to be cut down. At the same time, for most potential buyers, the house is a must, they still stand by to wait for a further decrease of the price of the real estate.
As the policy if limiting purchase of the real estate has been carried out and will be carried out, the real estate industry in China seems to have come up with its turning point and the sluggish of the real estate industry may affect other fields such as the construction industry, the architecture industry and the raw material manufacturing. In fear that the industry which may reap profit too soon may cause another bubble like the real estate industry has done, so the government has shifted the responsibilities of driving the economic growth to the growth of consumption and hopes that it can engine the whole national economy. It can be said that the construction of medium and long-term framework for sustainable economic development has begun.
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