Austrian Media Interview German Research Institutions That China's Economic Growth Slowed Down, But Has Not Yet Faced With The Crash.

According to the Austrian media standard, China announced that its economic growth rate was over 14% before the global financial crisis in 2007, while the Statistics Bureau of China announced that the growth rate of GDP in the second quarter of this year (2019) dropped by more than half to 6.2% compared with 12 years ago, a nearly 30 year low. Before the US imposed punitive tariffs, China's economic growth over the past 5 years has been above 6.5%.

The Sino US trade war is the main reason for the slowdown of China's growth momentum and the stagnation of foreign trade growth. In May this year, the US punitive tariff on China's $200 billion product increased from 10% to 25%, and China's exports declined by 4% in June.

The German media review on the problems facing China's economy is as follows:

Economists at Kiel Institute for the World Economy (IfW), Germany, believe that China's official statistics underestimate China's global debt, and China's large loan to the third world, and the actual accounts receivable should be 2 times that of the book. Moreover, even if lending allows China to seize the resources of these countries, it will also put itself in a highly volatile market, making these claims or uncertain factors that can catalyze China's economic crisis.

Germany's Mercator China Research Center (Merics) pointed out that the Chinese government has discovered and started to deal with the aforementioned problems 2 years ago, and there is no sign of China's economic collapse (China-Crush) at present. After the financial crisis, a large amount of capital flows to the construction of China's high-speed railways, airports and other infrastructures. However, after the construction started, it is difficult for such infrastructure projects to continue to be put into operation. The Chinese government is trying to promote private enterprise investment by lowering taxes and other means, but its effectiveness is limited. Even if faced with the external shocks brought by trade wars, the Chinese government will focus on maintaining the stability of the domestic market.

According to Bloomberg data, China is also faced with debt problems. At present, China's overall debt is 271% of its GDP, far higher than that of 164% in 2008. Especially large state-owned enterprises are heavily indebted. Although these creditors are mostly Chinese banks, rather than foreign loans, these highly indebted SOEs lack operational efficiency and drag China's economy.