Dealing With Problems of Chinese Economy

Firstly, I am not convinced that China’s economic growth is a problem for the UK. I would argue China’s economic development has many benefits. (see: how Chinese economy has affected UK Economy)

Rising Oil Prices. We can’t blame just China for rising oil prices. But, it is a factor. There is not much UK government can do about that.

Decline In Manufacturing Sector. The government can always try to implement better supply side policies to improve productivity of industry, but, there is a limit to how much they can do. Governments may need to just accept the changing structure of the economy.

Environmental Problems. A problem of Chinese growth is the increase in carbon emissions. Growth from China can easily dwarf any savings the UK make. Not much government can do about that.

Current Account deficit. I would say that blaming China for current account deficit misses the point. Most of the deficit is caused by a decade of high consumption and low savings.