[China], April 17 (ANI): China, it seems, is in the throes of an unprecedented economic and financial crisis.
According to an article published in the Jing Rong Jie (Financial World) website, and reported by the chinascope.org website, Beijing spends a huge 15 to 17 percent of its gross domestic product (GDP) each year in meeting its interest payments.
The Jing Rong Jie (Financial World) website quotes Mao Zhenhua, the Founder and Chairman of the China Chengxin Credit Management Company, as saying at the recently held Tenth Chinese Mulan (Women) Entrepreneur Annual Conference, that given this enormous outgo towards reducing interest-related debt, Beijing has made prevention of financial risk one of its top priorities.
Mao further states that while China has emerged as one of the world's economic powers post the global financial crisis of 2008, it also has acquired the notoriety of printing the most money in the world.
According to The Jing Rong Jie (Financial World) and the chinascope.org websites, a majority of businesses in China are wrestling with a huge amount of debt.
The Jing Rong Jie mentions that surplus production in China has created a business scenario where supply is greater than demand, and where stock-related pricing and real estate is too high.
The report concludes by warning that China has created an economic bubble for itself that could lead to a financial crisis.
It is pertinent to note that given the above scenario, the Chinese leadership has over the past year initiated steps to ensure tighter control of the economy, which may last for some years. (ANI)