The idea is to understand the issue faced by the government recently: the decrease in rates of internal dynamics and job creation.
During the followed ten year, china has known a dramatic increasing of his GDP and became the second most powerful country in the world. (according to is dramatic incresing of external and internat exports leading to pass germany: in terms of analysing is invisible balance of payment) Within this growth, china had the advantages of his cheap labour force and polices decisions pushing external investments. This leads to attract huge amount of foreign investments, especially when the economic situation in the rich countries has known a decreasing, within recession.
So, this fact has covert his actual situation through his own bases (Chinese companies and public zone; like government subsidies weaker than the previous needs) also, within taxes pressure pushing back external dynamism, follow the example (within smaller porportion) of France after political change.(le figaro)
In order to against the situation, china central bank has privatized the 4 mains banks (Agricultural Bank of China, Bank of China, CBNC and China Merchant Bank) before owned by the government and establish to solved specific issues inside the country and created internal investment in order to push national growth base on competitiveness dynamic, like France did recently as well. (SNCF, EDF suez...)
As well as privatisation, Chinese government is pushing government expenditures supported by his sovereign funds in dollars, to achieved bases (principles of making security dynamism through longer term). In comparaison, the USA govermenent has establish the Marshall plan and the Bretton woods conference to create more stable and protected growth before the “ les 30 glorieuses” (Post-war boom or baby boom) in the 50’s.
In a logical conclusion, the government by pushing external pressure want to mainted his foreign funds. (If the RMB his going up like EU and USA, his amount of dollars (soreign funds) will depreciate, and therefore in an other word, China is controlling his interest rates in order to secure his reserve, and against any losses.
Secondly, the wage concerning his labour force remains the same (however, there is much more facts that could be pinpointed like the RMB making Chinese product much more expensive and leading to downward exports and push imports, or and in relation the inflation within downward cycle increasing gap between rich and poor people, also by making price of households peeking and destablising consuming behaviour in China, howeever, this is a much more dramatic approach.
