mead berger shevtsova garfinkle michta grygiel blankenhorn bayles
The Global China Bubble
China Up or China Down?
Features Icon
show comments
  • Pete

    Chinese prosperity & growth is dependent on the sufferance of the U.S. to its destructive trade policies. That all will be ending soon as will China’s rise.

  • JR

    I think China should go back to the days of Mao and just confiscate wealth above a certain arbitrary point. That will solve whatever ails them. FG guarantees it….

  • Jacksonian_Libertarian

    In the 40 years since the fall of the Iron Curtain, China hasn’t created a single world class brand name like Sony, Toyota, Samsung, Kia, Intel, Microsoft, Apple, etc. This means that China as presently politically structured lacks the creativity to be world class power. While the Chinese leadership likes to claim that they are responsible for the so called “Chinese Economic Miracle”, it’s a lie. It was the foreign investors that built state of the art factories in China to take advantage of the cheap Chinese labor and potential 1 billion new consumers. Any new technology that China has gained came from these investors, or is stolen.

    It is illustrative to examine why the “Enlightenment” resulted in an explosion of economic and technological growth in western culturally dominated nations. It was the “Rule of Law” element of the “Enlightenment” that protected Life, Liberty, and Property equally across all classes, which made efficient free markets possible. This engaged the powerful strategy I call the “Feedback of Competition”. It is the “Feedback of Competition” that provides both the Information and Motivation which forces continuous improvements in Quality, Service, and Price in free markets.

    In China’s case, China doesn’t have free markets, political power is how people get rich there. Because of this failure to embrace the “Feedback of Competition”. The only creativity in China is that brought by the foreign investors who are exposed to the “Feedback of Competition” in world markets.

    In conclusion, China as presently structured will NOT become a global hegemon. And while because of its size it’s a regional power, that power will swiftly decline now that China is hitting the economic wall, and the foreign investors which built China flee with the Capital Flight. The factories they built will become stagnate, dated, and decaying. Quality will decline, especially in comparison with the rising quality levels in world markets. China has never been known for its service. And prices have been rising with the increase in labor costs, and the difficulty in continued manipulation of foreign currencies. Where China is already holding $4 Trillion in foreign treasuries (purchasing foreign treasuries is how currencies are manipulated).

    This method of currency manipulation is very much a double edged sword. As any country can payoff their treasuries (fiat currencies) in an instant, and reverse the unjust currency manipulations of decades. While this would help with China’s raw materials imports, its exports would be priced out of the market, and it wouldn’t have any need for raw materials. 40% of China’s economy is dependent on foreign trade.

  • ImperiumVita

    Oh, but it will.

© The American Interest LLC 2005-2017 About Us Masthead Submissions Advertise Customer Service