Obstacles to China:

1
Obstacles to China

• The United State Current Economic Position
• Chinas unsustainable level of fixed capital
  investment fueling its economy.
• High Inflation
• State-owned or market-driven economy?

2
Huge GDP difference

• China 1.5 Trillion
• United States 11 Trillion

3

• 9.5 GDP growth
• 9.3 annual average growth for the last 25 years.
  
• 45 of GDP is from fixed asset investments.
• Unsustainable level and could lead to a hard
  landing for Chinas economy.

4
High Inflation

• 5.3 inflation
• 13 average property price increases.
• Due to the Yuans fixed exchange rate to the
  dollar.

5
Chinas plan

• No intention to freely trade the Yuan or adjust
  currency value or interest rates
• Instead
• Stop illegal construction
• Place stricter regulations on land and capital
  use.

6
Opponents view

• Not a long-term solution
• Costly and difficult to administer and enforce