At a U.S.-China Business Council Event that took place on Tuesday, U.S Treasury Secretary Steven Mnuchin stated that the Chinese economy is experiencing a tone down in economic growth. However, in comparison to other developing countries, it still holds a high spot. In spite of this, The Red Dragon needs to intervene on its increase on income inequality.
China an important ally and still an economic giant
During the Business Council Event, Mnuchin reinforced the idea that China will endure to be an economic powerhouse in the coming years. He also emphasized the idea that China is a real essential ally on measures restraining North Korea in further heightening its nuclear capacity.
Mnuchin specified important points on Terrorism Financing and Intelligence Department. As previously stated, North Korea now has become a major consideration. China, on the other hand, has become USA’s vital ally – even acknowledging that the Red Dragon is a significant element of the North Korea dilemma solution.
China’s Growth Rate
It was noted that the Chinese economy during the first quarter of the current year increased by 6.9 percent, which was seen to have expanded considerably faster than what was expected. Last year the average growth rate turned out to be 6.7 percent, which had been regarded as the slowest pace in a span of 26 years.
Mnuchin even accepted that China’s growth rate is higher than the United States’. China’s economy is large enough that it can propel its significant growth even in the future.
Study on Income Inequality
There is a recent study conducted about China and the results show that its economy is somewhat becoming like that of America. Economists are interpreting it as a poor situation for the Chinese society.
French economist Thomas Piketty, who is a professor at University of California together with the help of two other authors have published a paper through the National Bureau of Economic Research. Research data reveal that wealth inequality in China has somewhat become on a par between the United States and Europe region. In the past, such data used to be lower in the country among the other nations.
Even so, many economists still believe that despite of the uncertainties, Chinese economy stance remains positive.
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