Can China really AFFORD a WAR with Narendra Modi led India?




In this video, we will talk about the possible dangers Chinese economy is going to face. China should take care of its economy rather than war threatening India

References - 
http://www.telegraph.co.uk/business/2017/08/05/fresh-fears-chinas-debt-bubble-could-burst/

https://www.thebalance.com/u-s-china-trade-deficit-causes-effects-and-solutions-3306277


http://www.telegraph.co.uk/business/2017/08/05/fresh-fears-chinas-debt-bubble-could-burst/

Transcript 
Hello Friends, Welcome to my channel Real Quick Info.

- Friends, Now a days We daily hear Chinese threats to resolve the Doklam Stand off by military means.
- Today at a very high level, we will talk about Chinese Economy and the danger its facing.
- Everyone knows, Chinese growth is Export driven. They keep on producing cheap goods and dumping them in foreign market for consumption.
- China has addiction to debt, and they are heavily reliant on investment led growth.
- As per world's top economist and Harvard economics professor Ken Rogoff This economic model is unsustainable.
- Realizing this imminent danger, Chinese policymakers are trying hard to steer the economy towards domestic consumption.
To understand the situation better, lets first understand what is Credit Growth.
It refers to the increase in the amount of loans that banks lend to the companies business man individuals institutions, etc.
- In China, Credit growth rate is more than Chinese GDP Growth rate.
-  Basically, size of credit is growing faster than the size of economy.
- In simpler words, Chinese firms are taking loans at the rate which is faster than the rate at which they are growing.
-  As long as Chinese economy grows rapidly,such amount of credit can be managed.
- If Chinese GDP growth rate slows down, the whole Chinese model is at the risk of imploding.
- Chinese have been brilliant in managing such fragile economic model till now. But one day, the power of basic economics will play out.
- As long as Donald Trump is american president, there will  be decline in Chinese export to America.  Till now, There was $400 Billion US Trade Deficit with China and American president at least wont let it grow further.
- As far as India is concerned, There is $52 Billion Indian Trade Deficit with China. With Narendra Modi implementing series of reforms like latest GST reform, there is strong possibility, this Indian Trade deficit with China is unlikely to grow further.
- Amid weak hope of export growth, there is no remarkable signs of domestic consumption based growth picking up. The result is Chinese economy is slowing down.
- As a matter of concern, China is one of the biggest risks to the global economy over next five years.
- Hence, it would be better for China not to talk about the war but to focus on economic challenges its going to face.
-  There is dispute in Doklam region and it should be made subject of diplomatic discussion rather than subject of Chinese Prestige.
- China threatens to unleash its military might against India. does this effectively mean Chinese diplomats don't have the capability to resolve the dispute?


For this video we have referred a few online articles. you can find their links in the description box below.

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Tags
Doklam Standoff,
China,
India,
America,
Donald Trump,
Chinese economy,
Chinese military action,
Chinese economic slow down,
Narendra Modi,
Modi on China,
Ajit Doval on China,
Sikkim standoff,
fresh fears chinas debt bubble could burst,
Chinese debt bubble,
can China really fight a war with India,
Can China afford a war with India,
Chinese cheap exports,
Chinese domestic consumption,
USA Trade deficit with China,
Indian Trade deficit with India,
Chinese economic Challenges,


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