Chinese Economy Reached Saturation Point

By definition, Saturation Point is a point at which capacity has reach its peak. The Chinese economy is similar. Its economic growth has been bullish for the past decade but it ultimately reached its maximum limit. IMHO, Chinese economy will still grow but not as much as it was previously experienced.

Other countries having business dealings with China refuses to accept this truth and still forecast better growth. This forecast will have a negative effect and will lead to tough economic times again.

The Chinese slowdown is dropping commodity prices making it more difficult to compete. First world economies will have a hard time beating the prices from third world countries where production cost of the latter is only a fraction of that the former. Job losses will be inevitable. Hopefully, not into another recession.

About the Author

Ver Pangonilo
A Filipino Engineer, Registered Professional Engineer of Queensland (RPEQ) - Australia and Professional Electrical Engineer (PEE) - Philippines with extensive experience in concept select, front-end engineering, HV & LV detail design, construction and commissioning of Hazardous and Non-Hazardous Area electrical installations in water and waste water pipeline and pumping facilities, offshore platforms, hydrocarbon process plants and pipelines including related facilities. Hazardous area classification and design certification (UEENEEM015B, UEENEEM016B, UEENEEM017B).
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