In the latest months, news all over the world have been talking about two main topics, China’s economic situation and the fall of oil prices. What’s happening with China economic growth? And why are oil prices falling so fast?First of all, I want to talk about Chinese economic situation. After growing more and more during more than 20 years at least, China economic growth has experienced a painful slowdown in the last two years. According to experts, China’s economy has suffered this economic slowdown for two main reasons: China’s focus on creating an economy driven by consumption has made an overproduction that now they can solve, especially in steel. And the other main reason is that China's stock market has crashed over because of the distrust of the other countries of this overproduction and because of the ignorance of some Chinese investors that have become indebted investing with money that they didn’t have.
The oher important piece of news has been the oil price falls in all over the world. The latest fall of oil prices has been prompted by concerns that a market already awash with oil from the two biggest suppliers – Saudi Arabia and Russia – would receive additional supply from the lifting of sanctions against Iran and the ending of a 40-year US export ban. In addition to this, experts say that things won’t be better in 2016.
In conclusion, in this 2016 things won’t be better in the economic aspects. China will have to do all their best to have a lower production if it doesn’t want to continue having an overproduction. And in my opinion we have to search alternatives to the oil, pushing more towards renewable energies.