Importance The article reviews the current situation in China’s economy, which is accompanied with escalating crisis phenomena in terms of many key indicators of economic development. Objectives The research analyzes trends in China’s economic development and identifies the main financial and economic disparities and their reasons. Methods We examined the mechanism implying that economic development indicators of China are incremented artificially due to an increase in real estate prices, value of shares and adding excessive production capacities through the State’s financial injections, and additional liquidity of banks, etc., thus making the nature of crisis disparities critical. Results We indicated the main components of huge financial ‘bubble’ in the Chinese stock market, which resulted in slumping prices in the summer of 2015. Conclusions and Relevance As the former economic model for the Chinese economic development loses its relevance, it naturally requires revising some infrastructure projects. Consequently, China’s export to Russia will slow down if there are no measures taken to find possible directions of reciprocal demand and supply of Russia and China. Weaknesses of China’s economic policies should be taken into account to improve strategies of Russian legislative and executive bodies, and economic unions Russia is a party to.
Keywords: China, global economy, finance, crisis, debt
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