文档介绍：Chinese Economy – Structural Problems and Bank Overlending
Chinese Economy – Structural Problems and
Bank Overlending
Case Study Reference No. ECC0008
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Chinese Economy – Structural Problems and Bank Overlending
Chinese Economy – Structural
Problems and Bank Overlending
The last two decades of the 20th Century witnessed a rapid growth in the Chinese economy [Annexure 1]. With its
economic growth reaching a seven-year high at % in 2003,1 China became the regional economic superpower.
However, the rapid economic growth was coupled with a growing concern on excessive investments in some industries.
The ChineseINSPECT governmentNot FoIONr apprehendedReproduction COPY that such excessive investments boosted by unwarranted bank lending might
lead to an inflationary situation in China.
The Chinese economic growth by 2003 was largely attributed to the fast-paced industrial production [Annexure 2]
and rapid growth of heavy industries. According to the Chinese ‘National Bureau of Statistics’(NBS), the industrial
sector accounted for % of the Gross Domestic Product (GDP)2 in 2003. With capital investments growing by
%3 in 2003 along with a per-cap