Pivot of China’s economic growth
This time when I arrived in Wuhan, it looks no more like the one I was familiar with. I found every single main street is under construction. Then, I thought of the one episode that I listened to on BBC.
It says within this financial tsunami, every country was trying to survive with huge budget, including China. For China, in order for the 8% GDP growth, the huge construction is needed to promote the comprehensive economic activities, so that as many workers as possible could have a job. That’s why I see so many road works in Wuhan.
In my opinion, the pivot for the economic growth should be internal demand in China. Although the huge industrial constrution is one way to stimulate it, the people might have no interest in that. And the other way to achive that stimulus should be the people’s purchase.
For today’s China, two factors that make Chinese people save money in the banks are housing and medical service. So the budget would be better invested thereof. Since housing is ridiculously expensive in China, then the latter one, medical service should be the target.
Let’s think if one in China doesn’t have to pay attention to their medical fees. Then, a lot of people would like to use it instead of saving it to the bank.
If the government can performance out this idea, that would be very good for the regime and people.


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