Analysis of the Chinese Economy

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No.1 The slow growth of Chinese exports trade as the gloomy world economy.(出口) Recently, changes of the demography, the factor price, supply and environmental protection will increase the cost of Chinese exports. On the other hands, the recovery of the U.S economic remains slow, also the continuing escalation of the European debt crisis and the slow recovery of the global economy leading the result of the slow growth of Chinese export trade. Facing the situation, Chinese government should do more help to improve the development of the business in terms of the alleviating the financial pressure, solving the trade friction and perfecting the safeguard mechanism of exportation credit risk. At the same time, keep the corresponding import policy to promote the balance of the foreign trade.

No.2 The aging population in China probably leads to a lack of labor force for economic development.(人力) Next, not only in China and even the world, the aging of the population is a severe factor for the economic development. According to the prediction, the rate of the aging of the population will reach approximately 30% in the next few years. As we probably know, the population means the labor in economics and the labor force is vital for the development of the national economy. Lack in the labor force will definitely leads some negative effects to the economy. In order to ensure the financial sustainability, it’s better for the Chinese government raise the age of the retirement for men and women gradually in the coming years.

No.3 The transformation of the Chinese government function.(政府角色) The role of the Chinese government ought to be transferred to do some macroeconomic control more efficiently rather than implemented more direct preventions in some industries and businesses. However, what the government should do indeed is to focus more attention on how to formulate some practical economic policies. Plus, there is a decreasing of the marginal value of the

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