Thursday, April 17, 2014
The economy between boom and collapse
Global Times | October 20, 2011 02:16
By Global Times
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On any particular day, Terminal 3 at Beijing's Capital International Airport is normally busy. There are crowds waiting to get their boarding passes while others wait to undergo security checks. Even though the airport has installed many ticket machines and has opened all the security gates, the place remains packed.

This is the scene at every transport hub nearly every day in China. It is a sign of booming times.

But on the other hand, the National Bureau of Statistics announced the country's economic growth has slowed for a third consecutive quarter. Media reports have also told stories about how the construction of the country's 10,000km high speed railway line has been halted or stalled due to capital shortage, while Wenzhou has seen several of its entrepreneurs abandoning businesses and escaping overseas.

Some believe the "collapse" of business in Wenzhou heralds the "collapse" of China's economy. But, compared to the booming scene one can find at the Beijing's Capital airport, what is really happening in China right now?

It's neither a boom nor a collapse. The news of a growth slowdown has drawn positive comments, as some people see it as an economic "soft landing". But the stock market has disagreed by completely going green, indicating the market may not be happy with this "soft landing".

Prophecies of China's collapse are not new, yet the predictions have become more ambiguous. China's stock index once fell from 6,000 to 2,000 points in 2008. Many prosperous industries in China are now entering a decline, but is this a collapse?

Perhaps we should say goodbye to the word "collapse." It is subjective in nature, and it was initially forced upon us by the West. It has lost its actual meaning and has gradually become a part of an ideological debate specifically targeting China's economy.

A "collapse" may not be that terrible. Many Western countries have been standing on the edge of collapse in recent years. Their experiences have practically defined the meaning of the word. 

However, Chinese society has become less tolerant. It wants China to become that perfect country which can maintain a relatively high growth rate while avoiding inflation. This type of demand is not exactly wrong, but nothing is perfect. No country in the world has ever had a perfect economy.

Chinese economists should tell the truth, including the severity of China's economic issues and how the effects of these issues play in our rapid economic development. The truths will provide us with a natural view of our economy, and we will see that our economic machines may not be operating well, but it won't be easily shut down either.

China is still developing. It is not heading towards collapse. The country  has been through many disasters over the past 30 years since opening-up, and none of them have ever kept it down.


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