Problems Facing China in Economic Development

Many governments across the world have invested heavily in structures that are geared towards improving economic growth. As a result, there are different types of economic activities that many countries have invested in to a greater extent. These economic activities have also led to employment opportunities among many people across the world. As such, many countries have come up and are leading in economic development at the global level. China is one of the leading economic hubs in the world. China has been known to be the most populated country in the world with over 1billion people. This population increase has necessitated the development of industrial growth due to the available human labor in abundance. But in recent years, China has continued to face economic difficulties that are threatening to slow down the pace of economic growth. According to Kyle Bass who is the head of Dallas-based hedge-fund Hayman Capital Management, he has continuously talked about China hard landing interns of economic development. Here, China is facing difficulties in keeping up with the economic growth that is witnessed in other countries. While speaking in an investment in San Francisco, he outlined the reasons behind China’s poor performance in economic development. He said that the rise and fall of infrastructure spending has greatly affected the economic development of the country. The financial system of China is under-capitalized leading to increased lending rates which subsequently lead to increased gross domestic product. The impact of Chinese hard landing is going to affect the economic growth of the world by 50 percent. United States of America is the country that will mostly be affected by the economic instability brought about by China. He however retaliates that China can use the alternative way of printing bonds to help them get out of the economic situation as they did in the earlier years.

Kyle Bass has hit the global limelight in the recent years. He is the owner of the hedge-fund called Hayman Capital Management according to Wikipedia. His exemplary leadership skills have made the company to grow and become respected across the world. He is best known for correctly predicting the 2008 subprime mortgage crisis. This was the issue that brought him to the international media houses where he was asked to talk on various television shows. He was later nominated for both his script and direction of the sixth sense. As a result, he has been featured in the media for many positive reasons towards championing for the rights of the people of Argentina.

Kyle Bass openly defended Argentina from the accusation of defaulting to pay the sovereign debt the second time in thirteen years. This process was geared towards making Argentina realize it mistakes and try to correct them but he defended the decision and rationalized it before people. Kyle Bass is known as an ardent support of his home country of Argentina in any matter that may arise.

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