Accounting Case

A research conducted at CRU International ltd shows that the exports of agricultural products are declining which means that there will be lesser buyer of agricultural products. High inventory of agricultural products is expected by the end of 2012, which is expected to weigh 4.5 million tons. The imports of potash in china are expected to fall to 6 million tons as compared to 6.5 million for 2011. (Holz, 2008) The prices of vegetables are falling since September 2011. Major potash is used to produce these but due to the falling prices of vegetables and fruits, farmers are reluctant to invest on potash to raise productivity. The exports demands for potash are also lower in Brazil and India due to expectations of slow economies. The Buyers are delaying purchases due to local and global economic conditions.

According to China's Premier Wen Jiabao, the setting of lower growth rate will raise the likelihood of achieving targets in Twelfth Five year plan. He focuses to train people in all sectors and accelerate the conversion process of economic development. This will achieve the high quality development over longer time. He also insisted that china needs to amend its growth model in order to maintain the nation's economic miracle. (Michael, 2012)

Wen views that to make the success certain over the work carried out this year, china must sustain the idea of scientific development, changing the pattern of economic development and accept a holistic approach while coordinating all the tasks.

The government has set targets for social and economic development while maintaining stability. In future china will continue following prudent monetary policy and proactive fiscal policy. The policies will be made more flexible and targeted.

The other factors for lowering growth were to expand the domestic demand and maintain the foreign demand stable, work hard to face the impact of uncertainty and instability at home and abroad and develop the real economy.

Any movements in china impact the overall world. China's declining growth nearly free all the East Asia from Recession and boost up the national economies of countries from Australia and Brazil. China is one of the major commodities importers and slow growth of china will result in lower prices for iron ore, oil, copper and other raw materials. China is the major source of exports for US, so decline in the economy of china will hit the American companies. China is also the major trading partner for countries in Asia, slower china will sniffle