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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Here’s What’s Happening with China’s Economy
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