China now has the world's second largest economy, but its GDP girth may not directly translate into as solid a market as one might guess. In the video below, Stratfor points out that China, despite impressive growth rates, is both export heavy and consistently dependent on razor-thin margins that can easily turn negative. This leaves the nation on a more precarious footing than developed countries with domestically-oriented economies. Until China makes that transition, Stratfor argues, it'll have a tough time eliminating the persistent threat of social unrest in order to become a sustainable economic powerhouse.
China’s Huge Economy Perhaps Not as Solid as it Seems
China now has the world's second largest economy, but its GDP girth may not directly translate into as solid a market as one might guess. In the video below, Stratfor points out that China, despite impressive growth rates, is both export heavy and consistently dependent on razor-thin margins that can easily turn negative. This leaves the nation on a more precarious footing than developed countries with domestically-oriented economies. Until China makes that transition, Stratfor argues, it'll have a tough time eliminating the persistent threat of social unrest in order to become a sustainable economic powerhouse.
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