Chinese economy Since the 1978 Chinese economic reform, China has set economic growth as its main, if not the only, target. Until today, the authoritarian government seems to have proved to be successful: GDP soared, exports surged, and foreign exchange reserves roared. In 2008, while most of the European countries suffered from the financial crisis, the Chinese economy looked impregnable. It is little wonder that Western countries crave to build a friendly and solid relationship with China, as its 1.3 billion consumers are beyond alluring. However, recently many economists questioned the stability of China's economy, as the economic growth in 2016 was the slowest since the 90s. Moreover, the yuan depreciated as capital outflow increases, corruption unsolved and people lost faith in RMB. China is propping the exchange rate up by selling dollars, leading to a sharp decline in Chinese foreign exchange reverses. The smog in Beijing has become too severe that some newspapers described the city as 'uninhabitable'. It is the result of a rapid yet environmental-destroying economic growth strategy. But is it also a sign of Chinese grim future?