The Global Crisis and its Impact on China’s Economy

The outbreak of the subprime mortgage crisis is a historic event, marking the end of the excessive consumption model and laissez-faire capitalism. It also marked the collapse of the old economic structure, ushering in a period of dramatic adjustment and turbulence. For the next few years, China may suffer a significant drop in domestic and foreign demand as well as industrial growth rate. The subprime mortgage crisis has reduced resident income expectancy, therefore slashing people's spending on entertainment, tourism, education, communication, etc. However, in the long term, China has huge potential for economic growth. In order to reduce the risks and seize the opportunities, we need to take positive measures to stimulate domestic demand, accelerate economic restructuring, and maintain stable and rapid economic growth