China has ‘very serious’ structural problem – Broadman
CAPE TOWN (miningweekly.com) – A very serious structural problem is playing itself out in China and not merely a reorienting to a consumption-led economy, says Council on Global Enterprise and Emerging Markets director Dr Harry Broadman.
Broadman, who delivered the second keynote address at the 2016 Investing in African Mining Indaba, is also a John Hopkins University senior Foreign Policy Institute fellow.
“What is driving the problems in China is systemic, stemming from basic contradictions in the fabric of the economy that continues to pursue Deng Xiaoping’s dictum of a socialist market economy.
“If you think about the juxtaposition of those two words, they end up themselves in a contradiction.
“What’s been happening is that contradiction is now coming to the fore,” says Broadman, who has been studying the Chinese economy since 1993.
Perhaps the most glaring contradiction, he adds, is what is going on in China’s “so-called stock market”, where there is a lack of understanding that when the market falls money is lost.
That is not tenable in a place like China that depends heavily on maintaining social security so the government steps in and props up share values.
While the Chinese are vocal about reorienting their economy as a consumer-oriented economy, Broadman contends that this will not happen with household consumption accounting for only one-third of China’s gross domestic product (GDP).
In the US, for instance, household consumption accounts for a “very different” two-thirds of GDP,
“So what’s going on in China is a far more serious problem than I think most people understand,” says Broadman.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Supplier & Distributor of the Widest Range of Accurate & Easy-to-Use Alcohol Breathalysers
VISIT SHOWROOM
From batteries for boats and jet skis, to batteries for cars and quad bikes, SABAT Batteries has positioned itself as the lifestyle battery of...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
