What is Slowing Growth in China?
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A small part of the slowdown of growth in China in the recent decade may be due to the decline in population growth. The major factor contributing to China’s growth slowdown has been the reversal of earlier policies resulting in foreign exchange reserve accumulation. The resulting pressure for the currency to appreciate undermined the international competitiveness of Chinese exports. This has led to the decline in China’s export/GDP and investment/GDP ratios besides reorienting growth towards domestic consumption, thus also reducing household savings.
KeywordsChinese exchange rate Chinese competitiveness Chinese growth China–US relations
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