4 Myths About China's Economy

China Currency

1. China's Currency Is Artificially Undervalued - The value of the renminbi has risen by 30% since 2005. In 2015, the International Monetary Fund said the currency was no longer undervalued.

China Exports

2. China Has Grown On The Back Of Low Cost Exports - The US trade deficit with China was a record 367 dollars in 2015. The issue of low cost imports from China has become a sensitive issue. But it's investment rather than exports that have driven Chinese growth for a decade.

China Factory

3. China Is The 'World's Factory' - Services are actually a bigger part of the Chinese economy than manufacturing. They've been growing faster than factory output exceeding 50% of GDP in 2014. Meanwhile, rapid Chinese wage growth has forced manufacturing companies to move upmarket.

China Investment Funds

4. China Is Sucking Up The World's Investment Funds - Since the 1970s, China has received huge quantities of foreign direct investment. But in 2015, China invested more overseas than it brought in for the first time. 

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