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| quote: | Originally posted by Lebezniatnikov
Hmm, in what sense though? I'm assuming you don't mean that they are morally or politically better off than the US, so I imagine you're talking about economic position. |
Absolutely. But i think that position is argueable (like i've said before, i don't believe the government growth numbers, and China has too many social problems, which may affect its economy, that need to be dealt with before claiming China to be the new America). My point was the chinese economy has enough positive factors and the US enough negative factors, that I really wouldn't argue if someone said that the chinese economy was in better shape.
I don't believe china is a real driver in the global economy. China produces for export cheap low-tech good that have many substitute products. Exports comprise a huge percentage of its economy: 40%. Moreover, most of that 40% are those cheap low-tech goods (I'm actually advising a medical device manufacturer on locating its manufacturing operations in asia, and the company is super-reluctant to locate it's high-tech manufacturing in China, opting instead for Singapore). Unless you believe that supply of low-tech goods creates demand for such goods, then china can't possibly be a real driver in the global economy. I don't subscribe to that view. Most of the shit china produces has adequate substitute products (e.g., if you don't buy Walmart Wrangler jeans made in china, you could buy cheap jeans made in bangladesh). That can't drive global demand to any significant extent. If China produced more novel products or if imports were a larger percentage of its GDP, then perhaps it could be a significant global economic driver.
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