Chinese Economy Slowing Down(and demand deposit increasing fast)

(Hong Kong, Yonhap News) correspondent Kwon Young-suk -- Due to contracting investment, Chinese economy is slowing down, according to the analysis of Morgan Stanley on July 12.

Andy Xie, a Morgan Stanley's analyst, said in his report that Chinese corporate profit and real estate price has changed their trend and now on their way down, while corporate investment is decreasing.

He emphasized, "In particular, the austerity measures introduced in August 2003, had been loosened since last October, which allowed overcapacity of Chinese economy to persist."

Report also notes that China's demand deposit has skyrocketed from 4.4 trillion yuan($531.6 billion) in 2001 to current level of 7.5 trillion yuan($906 billion), urging Chinese government to take proper countermeasures.

He pointed out that the recent increase of demand deposit is due to hot money, anticipating yuan's revaluation, or money generated from corrupt activities. The large outflow of such money could cause a financial crisis.

He added, "To prevent it, they need stepped-up measures against inflating the nominal value of import or reducing the nominal value of export, along with anti-corruption campaign."

Actually it is a emerging fascist state.

I have read recent report that China has been investing heavily in Military at the same time that the economy is (possibly) starting to fail..
Along with this is the recent attempt to buy UNOCAL, the oil/energy company..

Sounds like the government knows very well what is coming, and are preparing to have a strong military to keep order.
At the same time they are trying to consolidate possession of some oil export/import companies to insure enough oil to keep government/military going..

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