The three "if's" that could lead to China's demise

http://www.businessinsider.com/3-big-ifs-in-chinas-economy-2016-1

China’s stock has dropped 7 percent. It is hanging on three very important aspects of its economy to either bring it up or destroy it completely. These issues include its currency, its corporate sector and its housing market. All of these things make or break an economy and if one falls, another could too.

Last year, Chinas economy was beginning to deplete and the currency was devalued to the United States dollar. They seemed to stabilize it for a short while but then, yet again the value began to drop. It is still falling today. Currency is a big deal in any economy because it is used to determine value of products and can create major debt if the value of products is more than the value of the currency.

Another issue in China is its corporate sector. This includes all of the industrial, management, and properties sections, which make up the import and export of China’s money. Since all of these are losing their growth, China is having issues because they were the reason that China was so powerful in the first place. The fact that they are diminishing is making China lose power and go into debt. If they don’t restructure and figure out their crisis, it will just get worse.

The last problem in the three is the housing sector. This year the Chinese built all of these new houses but ended up with 17.8 percent of unsold housing. This means all the money they spent trying to profit is now putting them into debt. This is strange to me because Chinas population is still growing but these houses aren’t being bought- does this mean that people are aware of the economy situation and are saving their money because they know they will need it?

Finally, all of these issues within the Chinese economy lead into the drop in the stock market, because as a whole, the economy is losing its value and is not booming as it was before. I believe that china needs to assess every issue individually and see how they affect each other before raising taxes or making mistakes that will just put them into more debt. My prediction is that they will continue to lose value before anything is fixed.