Chinese president Xi Jinping admitted that China's economic slowdown will be even more visible in the coming years. Experts say that it will not achieve 6.5% target due to debt and liquidity crisis. The picture of booming economy and future's apparently rich society has been turning into an unreachable goal for coming years. This is happening due to the devaluation, overwhelming growth of towns which are unable to attract people of China who can't actually afford it, high debt and growing heavy burden of repayment.
Apart from these main reasons, below are some reasons which, if not directly, are causing China's economic slowdown.
Low-quality products
Chinese products exported to other countries are generally of low quality and sometimes harmful to the users, especially the toys for children. As a result, some countries have started banning some Chinese products to protect their citizen's health. The plastic, rubber, and colors used to make Chinese toys are generally of low quality and harmful for the health of children and are of concern for the developed countries of Europe and America.
On the other hand, the labor in China is also getting affected by the low-quality raw material used to manufacture the products. This is another reason why governments and importers of the western world have started to ban such products. This is resulting in huge losses to the manufacturing sector and ultimately China's economic slowdown. China has to control the unethical practices in manufacturing unites to regain the trust of importing countries to stop further loss. China needs to overcome the greed of bringing foreign currency into the country by controlling such unethical manufacturing companies.
Dumping of low-quality products
China has been resorting to the way of dumping cheap and low-quality goods in developing countries. All its government wants to do is to keep their manufacturing units running and has been doing this for the last few decades. This has created a protest from commerce associations of many countries. They are demanding the steps to curb the dumping. Governments of many countries have started implying anti-dumping duty as protective measures to enable local industries to compete with cheap Chinese goods. This is affecting the manufacturing sector and threatening its position as a manufacturing hub of the world which is one of the many signs of China's economic slowdown.
Territory and border disputes
China has disputes with almost all of its neighbors over borders and territory. This, especially the disputes for the control on areas of the South China Sea has prompted opposite moves among countries involved in a dispute with China. They are increasing the trade and defense co-operation to counter the increasing influence of China as an economic and military power. Japan-US, Japan-India and India-US relations and agreements on trade and defense are a few examples.
People of South Asian countries like India, Philippines, and Vietnam are now protesting and asking for the boycott of the use of Chinese products.
Small countries like Pakistan, Maldives, Tajikistan, Kyrgyzstan, Mongolia, Laos, Djibouti, and Montenegro are becoming the victims of the Chinese debt-trap. But their citizens will start protesting China in the future when they will realize this country's motives and strategy. This may further worsen the situation causing China's economic slowdown rapid.
Possible solutions for China's economic slowdown
To overcome this situation, China needs to resolve disputes with neighbors and live peacefully. But the government seems unwilling for this as it's seeing China as a more powerful and influencing country compared to those around it, ignoring the principles of peaceful coexistence and mutual development. Unfortunately, the Chinese government is also ignoring the fact that it can't create a sustainable future by following unfair ways of making wealth. Sooner or later, the bubble of Chinese booming economy will be burst.
