This article is the part 4 from Chapter 5 of Richard Heinberg’s new book The End of Growth, which is set for publication by New Society Publishers in August 2011. This chapter ‘Shrinking Pie: Competition and Relative Growth in a Finite World’ looks in greater depth at the prospects for further development in in an increasingly resource strained environment.
The China Bubble: Economic Growth’s Last Stand?
Oh No—Not Another Real Estate Bubble!
“Cao Jianhai of the Chinese Academy of Social Sciences in Beijing likens the Chinese economy to “a volcano before an eruption.” Nevertheless, he doesn’t believe that the government of Hu Jintao, the Communist Party leader and president, and Prime Minister Wen will allow a crash to occur before its term in office ends in 2012—local governments are too dependent on the real estate boom. According to Cao, Beijing will go to “any expense” to pump money into the financial system and spur a renewed surge of rapid economic growth.”
Image credit: Chinese dragon – HarcoRutgers/flickr