With the financial crisis spreading around the world in the United States, China seems to be safe. Because the government owns land, has higher quality mortgage loans, a closed financial system and huge foreign exchange reserves, the country is unlikely to face a similar economic crisis.

First of all, the depressed real estate value directly triggered the current credit crisis in the United States, which is unlikely to happen in China. In China, the land is owned by the government, not by China homeowners. The owner only needs to buy the right to use the land for a certain period of time.

Another reason is that China will not suffer the same fate as the United States: buyers usually buy the first house with a down payment of 3%, and the government requires that the down payment rate for the second house should not be less than 4%. The high down payment ratio and low loan default rate have enabled China banks to keep their troubled mortgage assets under control.

Finally, a similar crisis will not happen in China, because the country has a closed financial system and 1.8 trillion foreign exchange reserves.

Therefore, although China may not suffer from a similar financial crisis, it has accepted a series of challenges from different financial crises-how to control inflation, RMB appreciation and how to maintain a strong export policy. And now in other parts of the world is being hit by the decline in export rates!