Sei sulla pagina 1di 1

1.

Economic Problem
 Capital Flight in China is accelerating.
2. Decisions Made
 Apparently, there were no further actions or decisions made to resolve the
problem because the Chinese economy has been growing for the past years and
continue to borrow money to provide financial assets for their economy and
building too many non-efficient infrastructures. Thus, leading to ceaseless capital
flight in China.
3. Evaluate if Good or Bad
 Bad Decision
4. Justification
 It is the tremendous problem China would ever experience because once there
has been a huge capital flight, either domestic capital or foreign capital, there
will be no financial assistance to support their progressing economy and it would
leave their country with a lot of liabilities.
Mistake was made by the Chinese government itself. They keep on pushing the
10% gross domestic product (GDP) every year. In general, this is an astonishing
growth of economy comparing to America which has only 2% per year. However,
this must face complex considerations of yearly modernization or industrial
growth if they keep on insisting the 10% increase in GDP per year. Therefore, the
more they keep on pushing their 10% standard growth, the more sophisticated
their problems are and their debts.

Potrebbero piacerti anche