China bubble

China has become the world’s second largest economy, and is expected to become the largest in the near future. China has excelled in almost all walks of a country: from human capital development to technological accomplishments. Primarily, China’s favorable demographics and skilled labour force have contributed remarkably. Growing balance of trade and highly profitable rate of domestic trade, therefore, enable China to spend more money on education, health, and human skills. These days, China confronts some serious problems with its skilled labour. Currently, the employed population in China is 776 million, out of which 165 million are skilled, and it is expected to decline at three million in 2020. To cover this shortfall, the Ministry of Education of China has started focusing on 'vocational education' for its masses, enabling its people to become innovative and creative.In spending, China has the fourth largest IT market around the globe. With its impressive IT experience over the past years, China’s current five-year plan is to make IT one of its strategic industries, expecting it to grow five percent annually over the next five years. Today, China has increased its internet users to over 500 million, from a reported 22 million in 2000. However, China’s rapid growth is still a mystery for many economists. They state that this extraordinary boom is a 'bubble economy' which is abnormal, and that this bubble will burst in the near future. To prevent this, they suggest, China must take some proactive measures by expanding its investments in innovation and technology. As far as Pakistan is concerned, it would be effective to analyse our own dimensions, and mobilise our own resources. Our domestic economists must not rely on policies that are implemented and became successful in some other countries; they must propose economic strategies keeping Pakistan in mind.Fahad KhanNaudero

from The News International - Newspost http://bit.ly/2YdORy1