According to newest reports published by the World Bank, Chinese economy speeds up from 6,5% in 2008 to from 7,5% to 8,5% this year. It is a good sign for the whole world. In this article I am going to explain why is it like that.

Since 1990s when real communism in China crushed, this country is on its best way to become world’s greatest economic power. Decades of Mao’s leadership made China one of the poorest countries in Asia. We need to remember that nowadays more than 1,3 billion Chinese people rapidly enrich and that will create enormous demand for housing, consumer goods and food. This is a great situation for many companies from whole world – they can recompense their looses. This, together with very low labour costs make China perfect place to invest. This will significantly propel Chinese economic growth.

Main problem of Chinese economy is drop of foreign demands. Chinese production, mostly adjusted for export could sense some slowdown of its development if it won’t try to sell their products in China. Internal market could be salvation for many Chinese companies.

Other problem, which nowadays appear in nearly every country in the world is too much interventionism and bureaucracy. It cause high taxes, regulations and corruption. Although in China situation isn’t as bad as in many other countries it still has a lot to do. It should follow Hong Kong’s example. It is famous for its laissez faire economy, which made it one of the wealthiest cities in the world.