Rus News Journal

The fifth generation of the authorities of the Peoples Republic of China non-standard economic problems

Before recently come to power Chinese leaders wait there will be new economic and political problems which are not characteristic for the previous generation of heads of the Peoples Republic of China.
the fifth generation of the Chinese authorities will face the delay of economic growth more limited to space for maneuver in economic policy, necessity of change of balance of making gross national products and carrying out of the further market reforms, is told in the report of international rating agency Moody`s Investors Service devoted to new calls for new heads of the Peoples Republic of China.
for the first time from the end 70 - h of the last century the state enters an epoch of economic growth which is measured by digits, weak external demand, economic “ a maturity “ and important demographic changes. In 2012 - 2014γγ. Growth of the Chinese economy will be slowed down approximately to 7,5 % that will mean also smaller tax revenues of the central government and local authorities and decrease in credit status of the state corporations and the private Chinese companies, mark in Moody`s.
Thus the new country leaders will have smaller possibilities on economy stimulation. Partly it is connected with escalating of debts of regional and municipal administrations, and also with increase in credit risks in bank sector and necessity to constrain consumer inflation.
Besides, the authorities of China will face necessity “ rebalansirovki “ economy through decrease in dependence on investments in fixed capital and export growth. “ in search of new engines of growth the Chinese economy should master benefits from higher volumes of private consumption, innovations and expansion of sphere of services “ - it is told in report Moody`s. Also it is necessary for government to spend additional market transformations to raise an internal competition and efficiency of distribution of the capital.
Moody`s recommends to continue liberalisation of interest rates and development of home market of bonded loans. Thus all transformations should be carried out in the conditions of the raised risks for social stability as able-bodied the population of China it will start to be reduced with 2015γ.
we Will remind, earlier in November 2012γ. In China national congress of Communist party on which the new generation of the state heads has been selected has taken place. Si Tszinpin, which in March 2013γ became the secretary general of Communist Party. Becomes the new chairman of the Peoples Republic of China and will replace Hu Jintao.