American Businesses See Warning Signs in China
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  • Qian Xuantong

    This is great news. For years analysts had warned China was growing too quickly and it was creating a bubble. This is finally happening and these same analysts are now convinced China is done for. 名落孙山!

  • Jacksonian Libertarian

    I have been saying all along that China is headed for a crash because of their export model economy. China has been manipulating their currency to gain a price advantage for their businesses; this has had a deleterious effect on those businesses by reducing or eliminating the competitive pressures on them that drive improvements in Quality, Service, and Price. Now after decades of less competition, Chinese businesses are uncompetitive on the world’s markets without that currency manipulation. Since the only thing China had going for it was cheap labor, and since they wasted the opportunity to leverage that cheap labor into world class brand name businesses which can compete without a price advantage, China will crash the moment they can no longer manipulate their currency. China now holds $1.15 Trillion in US Treasuries the most of any nation, and their ability to manipulate their currency is coming to an end on that mountain of fiat currency sitting in their account at the Fed. Balance will be restored; the Law of Supply and Demand will force it to be.

  • Jim.

    “Almost 40 percent of businesses surveyed cited the difficulty of finding qualified labor at discount prices as another major impediment to their business in the country.”

    Is anyone else bothered by that attitude?

    How about doing business if you can find qualified labor at equitable prices? Would that really be so much to ask?

    My goodness, I sound like an OWSer. 😉

    On the plus side, most of this is likely to work itself out fairly — execs aren’t going to be able to stiff their workers as much as they were in the past, but America is still going to have to get used to sharing more equitably with the world the commodities we now enjoy.

    Hopefully the scope of both human endeavor (new types of jobs) and the scope of human resource extraction (to support the jobs that already exist) will continue to expand, to keep everyone active, productive, and able to enjoy the fruits of the world’s economy.

  • “The rising wages that are lifting tens of thousands of Chinese workers out of poverty are having a side effect”

    Tens of thousands! In China numbers swamp everything.

  • Robert Sendler

    You can only build so many empty malls and empty cities before it becomes obvious to even the most optimistic(or jaded)that you are just digging and filling holes to no purpose.

    No matter how much “capitalism” they adopt, the Chinese are still an authoritarian, top down Command Economy.

    And what you get with that is empty malls and empty cities…

  • Kris

    [email protected]: “you are just digging and filling holes to no purpose.”

    No purpose?! Each time you dig and fill a hole, Keynes gets another pair of wings!

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