Seems, a major slowdown in China is at the door. According to a latest report, China is flashing signs of weakness in wake of slackening factory output and sagging export growth. 

Experts believe, this is not cyclical blip; it is actually foretelling a fundamental downshift from the boom of the last three decades in China. Let’s check out some reasons to believe that world’s most populated country China has hit a major turning point.

It is found, the boom of the last decade was significantly driven by making big investment in infrastructure including roads and bridges. Now, those networks are largely built. Observing last year’s investment, which hit a growth of 50 percent GDP, it is believed that China is at unsustainable level of economy. China also has recently announced its plans to dial back on the construction of new roads and rail lines.

In China, the baby-boom generations of the 1960s and early 1970s fuelled the economic booms in 1990s and 2000s. However, that generation is now passing due to strict implementation of the one-child policy instituted in 1979. It is reportedly said that only five million Chinese will enter the core working ages of 35-54 in present decade, down from 90 million during 2000-10. For this reason, numerous analysts are saying that China will grow old before it grows rich.

Another basic driver for China’s unprecedented growth was the migration of some 150-200 million people from farms to more productive jobs in cities.  However, according to a recent study, there were only about 15 million people underemployed in rural areas. 

After reviewing above mentioned issues, market watchers believe, the technology business in China needs to move towards a recovery path if it want to continue the growth momentum.      

Check out more IT news at itvoir.com