The End of China's Rise

Still Powerful But Less Potent

A man covers his face as he reads information displayed on an electronic screen at a brokerage house in Shanghai, May 17, 2010. Reuters

Over the past three months, uncertainty over the course of Chinese development has intensified, with a steady flow of mostly bad economic news: yet another plunge in the stock market, which was already crumbling and kept afloat only by massive state intervention; mounting corporate debt; and a hemorrhaging of foreign exchange reserves, to name a few. The reality is that China is staring economic stagnation in the face, and the ruling Chinese Communist Party (CCP) is panicking. The party appeared to have acknowledged the seriousness of its economic woes, which can only be worsened by a declining and aging labor force, when it announced in late October that it would replace its decades-old one-child policy with a two-child policy in March. China desperately needs more young people not only to fill the factories and staff the offices and schools but also to increase consumption so that the country can shift

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