Current Scenario
Under the leadership of General Secretary and President Xi Jinping, China has not been able to make any noteworthy growth in its economic reorganisation. Public-sector enterprises are leading the financial sector, along with other basic industries. The total national debt of China is approaching 300% of the total GDP. While, the anti-corruption movement is quite popular amongst the common man, it has bringing down the regional expenditures and economic development. The way, economic growth rate of China is gradually slowing down, it is lot worse than what is being exhibited by the recorded facts and figures. It is emerging as a serious challenge for the Chinese government, who is constantly trying to upsurge the living standards all through the nation with largest population in the world.
Development
With rapid growth, China has also faced many challenges comprising high disparity, fast urbanization, environmental problems, aging and increasing population, etc. According to experts, China needs to make substantial changes in their policies in order to achieve and retain their sustainable development.
China’s 13th Five-Year Plan from 2016 to 2020 is addressing these challenges. This five-year plan is highlighting the expansion of services and methods that will help the economy is tackling the issues concerning environment and social discrepancies by creating objectives to decrease pollution, increase energy efficacy, improve education and healthcare service availability, and grow social security. The target growth rate for 13th Five-Year Plan is 6.5%.
Inflation
Rising inflationary burden in China possibly will get an encouragement from increasing prices of one of the China’s main foodstuff, pork.
Food prices in China are one of the major aspects of consumer inflation, and one of the main foods in China is pork. Pork is a significant part of the Chinese economy with a per capita consumption of a fifth part of a pound every day.
As stated by Citic Securities Co., the pork makes up nearly 3% of the consumer price index.
On other hand, in non-food groups, prices have moved up at a faster rate including, clothing, household goods and services, education, and other goods and services during last months of 2017. In the meantime, transportation and communication, and healthcare prices have gone down. And inflation rate for rental, fuel and utilities haven’t shown any changes.
Would you like to read more about this topic? This book might interest you: Chinese Economy.