George Soros Predicts that China’s Economy will Decline


The Sri Lanka economic forum is a very important economic gathering for businesses and governments. While this conference primarily focuses on the economic development for the country it also touches off on other problems in terms of the world’s economy. One of the key speakers and contributors to the conference is a billionaire by the name of George Soros. This Hungarian born business mogul is one of the wealthiest men on the planet and his views should be strongly considered.

During the conference Soros told the audience and the press in attendance that China has major adjustment problems that amounts to a crisis. Soros reinforces this position by bringing up the point that the markets are posing a serious challenge that is similar to events that occurred right before the 2008 recession within the U.S.

Soros has speculated in the past about a number of different economic and political situations. His predictions were well made. A few of them helped him to earn in his legendary wealth. Back in the year 1992, Soros realized that the British pound value was going under. He decided to do a short sale of 10 billion pounds and received 1 billion in return. Many people in the business world were shocked at his ability to figure out what would happen. Since that time, a lot of people pay close attention to Soros and what he has to say.

Soros has not only made comments about China, he has also touched off on the current state of affairs for the EU, the US stock market and the coming 2016 US presidential campaign. Soros is truly a mover and shaker on the world scene. So, his comments about China being responsible for creating another global recession are not unrealistic.

Keep in mind that China has moved away from a manufacturing producing society to one that consumes more than it makes. This started to happen around 2013 as more Chinese people gained higher (more) incomes. As the result of improved wages and the availability cheap products in the market; the Chinese people want more luxuries and goods just like any other 1st world country. This consumer drive is playing a key role to weakening China. They are now using up a lot of the goods that is being produced instead of shipping them out for a profit with other nations.

Keep in mind that China is no longer able to sell products like it did in the past. This in turn is causing many companies to hire fewer workers. The fewer workers are having to find jobs that are service orientated just to survive. Meanwhile, China’s businesses cannot expand production. They actually have to struggle to maintain their current levels. Now that this is happening it is forcing the government to lower the price (devaluing) of the yuan so that the economy can maintain an equilibrium. All of these factors (and a few more) is why Soros is skeptical about China’s ability to stay afloat. Soros has many other reasons that he gives for China’s decline in the article George Soros Sees Crisis in Global Markets That Echoes 2008.

One thought on “George Soros Predicts that China’s Economy will Decline

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