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From VOA Learning English, this is the Economics Report.
China’s economy is growing slowly after years of strong gains. Some China watchers in the United States say the Chinese economy is stagnating, which means slowing down, and not moving.
They say stagnation is a real threat unless new reforms can bring big changes to the Chinese system. Some U.S. policy makers want to know how economic stagnation could affect the United States. Matt Salmon of Arizona is a member of the House of Representatives. At a recent congressional hearing, he said China’s efforts for development and global influence have “alienated partners and allies alike. There are cracks in the foundation, and imbalances remain politically, economically and militarily.” Chinese government numbers show its economy grew at its slowest rate in 24 years in 2014. Its growth rate was under eight percent, two percent less than a few years ago. The International Monetary Fund has predicted that China’s gross domestic product will grow at a yearly rate of 5.9 percent over the next six years. Derek Scissors is with the American Enterprise Institute in Washington, DC. At the hearing, he said China’s economic slowdown is “not avoidable.” Mr. Scissors said he does not believe the stagnation will lead to an economic collapse. He also added that a slowing economy does not mean China has lost its significance in the world. Jerome Cohen is a professor at New York University. He said many authoritarian governments were able to continue steady economic growth. He said China is no exception.