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A Chinese Recession Could Bring
the World's Economy Down




China is "the World's growth engine", as many experts call it. But what if they too enter a severe crisis?

If the "dragon economy" enters recession, the effects could propagate in a chain-reaction across continents.
Unfortunately the Chinese economy is indeed slowing down (read previous news article).

When China's partners aren't buying, the Asian giant isn't exporting. If exports shrink, production's pace needs to be somewhat more limited in order to cope with the real demand. China couldn't just overproduce, if it cannot sell its products.

As China has become more prosperous, wages started to increase. In a few years, China won't be provide the World with cheap workforce.

Of course, it's not just the tangibles that could bring a Chinese recession, but also the service sector. And what could be more dangerous than real estate and financial services?

Check out the Prime Values article on the similarities between the Chinese economy and the 2008 crisis' ignition in the United States.





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