Increasing labor costs and price rises for food, oil and other minerals might push up the inflation and this needs the government urgent attention, says Shaun Rein on Bloomberg TV today. While Rein sees some bears on the road to economic recovery in the short run, he stays bullish for the long run, as a higher percentage of China’s GDP now depends on domestic consumption.
Most observers still say that only one third of China’s GDP depends on domestic consumption, while in the USA that is 71 percent. According to researach of the CMR-firm Rein leads, domestic consumption in China is now already good for 40 percent of its GDP and rising.
Shaun Rein is a speaker of the China Speakers Bureau. When you need him at your meeting or conference, do get in touch.