In the past two decades, China’s economy rested solely on exports to the United States and Europe. Reducing the volume of these exports required a change of the vector, and the Chinese leadership announced, and the reorientation of production to meet domestic demand. The only problem in this decision was that domestic demand in China is desperately short, as living standards in the country remained very low, and capital projects, etc. could not offset the decline in exports.
Ultimately, the Chinese economy has kept the final fall only by gold reserves, but the blow dealt to the crisis has seriously shaken her and showed the dependence of the Middle Kingdom from industrial and consumer markets in the U.S. and Europe.
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