Hong kong, It seems that China is going to be facing a fierce financial crisis very soon and is going to wipe out economic recession in the country. According to an article printed on the website of Jing Rong Jai (Financial World), Beijing is spending a large chunk of its gross domestic product in repayment of debt.
According to the news report from the ChinaScope.org website, China spends 15% to 16% of GDP in repaying interest on debt. While quoting the Chairman of China’s Chengshin Credit Management Company, the website wrote that even though China has emerged as an economic power in the global economic recession in 2008, during that time, it also did the printing of most notes in the world. Thereby affecting the economy.
According to the Financial World, most of China’s businesses are struggling with large amounts of loans. Not only this, it has also been reported in the report that due to the maximum production, there has been a trade situation in China that has been supplying more than demand.
At the end of the report, it is written in a cautious manner that China itself has created an economic situation that can lead it towards the financial crisis.