The Risks for China's Economy

China seems to be unstoppable. The latest growth figures suggest it may be on course to overtake Japan as the world's second biggest economy. With a growth rate of 8.7% last year, China has seen its exports rising again, after a period where they were hit hard by the global economic downturn. But there are still widespread concerns that the economy could overheat or that the markets could take a tumble.

The fear is that some of the vast sums poured into the economy through an explosion in bank lending, have been diverted into investments in property and shares.

Banking regulators have pledged to slow the pace of lending and step up monitoring of banks. Wang Jianmao, Professor of Economics at the China Europe International Business School, tells Lesley Curwen those measures may not be enough.

In the wake of the financial crisis which began in America, it's become commonplace to talk of a shift in economic power from the west to the east. Some predict that China will eventually overtake the United States as the world's number one economy.

One Chinese property mogul is wary of these forecasts. He is Ronnie Chan, chairman of HangLung Properties which owns offices and shopping centres right across mainland China.

Plus, our Kenyan commentator Wycliffe Muga describes his hopes for new technology that could clean up Africa's dirty water.

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18 minutes

Last on

Mon 25 Jan 2010 02:40 GMT

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