"China has serious issues" all the time since 1950s. Yet, they made huge strides. A couple of visits and a few pictures published on CNN wont make an expert on China.
Pakistan can't even provide electricity or basic governmental services. They are an ideal country? That's hilarious. I'm not even going to get into the other issues that country has. Bangladesh is similar to Pakistan, except its government is much more stable, I'm sure you've heard about the atrocities within their garment industry. Regardless, you still don't get my point. China is NOT running out of cheap labor! That is their competitive advantage. Maybe you need to visit China again, some facts might sink in, somehow, somewhere.
Yes, most of the cities were built and no one occupied them, but not all of them. As far as a mortgage bubble, it is a real issue and not one the PRC is concerned with, at least outwardly. The PRC has overcapacity in the production of commodity goods for export. This doesn't even address structural weakness in the banking system and the existence of speculative bubbles. As far as what steps they have taken, I cannot tell you other than holding up their chin and saying there is no problem.
Alright..... lets try reading comprehension 101 for Canadians. First, who said that Pakistan is ideal? What I said is that China is losing manufacturing jobs to Pakistan and other places... which is 100% true. Indeed, China is losing both cheap labor production to places such as Vietnam, Bangladesh, Philippines and other places.... and losing high end labor jobs to places such as USA and Western Europe. Patent infringement, increasing labor costs (production costs) have hit China hard. Next time, I suggest you do your research before calling someone out.
I'm not sure where you get your info, but it's pretty well known that labor costs in China are rising and that manufacturing has been moving to even lower cost countries like Vietnam. Further, costs are rising near the tipping point where some US manufacturing is relocating back to the US because costs are no longer worth it when you add the shipping costs. There are plenty of articles talking about this slow but steady change - China's next growth phase is going to be based on domestic demand rather than cheap manufacturing for the world. http://www.cnbc.com/id/100651692 http://www.economist.com/node/21549956 http://www.imf.org/external/pubs/ft/fandd/2013/06/das.htm
Aww poor baby Chinese poster got his feelings hurt. China does have serious issues, they are very obvious if you visit and the research on the issue supports that contention. No one said that China is going to collapse, but to act as if there are not serious economic issues is absurd.
He didn't get his information from anywhere..... He made an assumption, and made an ass out of himself.
I would argue that there is even a real concern about domestic demand in China long term. It is a very difficult situation and balancing act. Also the problems that China has cannot all be addressed with domestic demand. Time will tell....
Yes. I've read that many wealthy Chinese are parking their money in property developments / real estate rather than stocks or banks.
china has issues? Like what?? staggering growth economically The chinese are not going to have a housing bust bc when your population is growing like theirs you need 20 cities the size of manhattan empty ready to handle the growth + you have to realize the chinese pay cash, the reason we had a bust here was bc everybody had crappy mortgages that they defaulted on, you don't default on cash. Sure they could sell for a loss, but the rich chinese won't do that. Chinese like real things, real estate,gold,silver,etc over stocks and bonds. It's funny america can say china has problems, the only problem china has is tons of us treasuries on the books and a surplus of cash
You can measure it however you want. There is one global pie no matter the terms that you price the pie. The point of the article is that the American economy is gaining significantly more value relative to the global economy.
They are entitled to their opinion, but it should at least be an educated opinion. Lots of inaccuracies and potshotting over a "shutdown" that really amounts to nothing. Yes, China go ahead and try to become less dependent on the US. Let's see how that works out for you. What's disappointing is that America really doesn't need to make major changes to fix long term deficits, but some people think America is going broke or something ridiculous.
China's population is not growing any greater than the US's. In fact, China's population will begin to decrease quite greatly starting in 50 years and will face changing demographics that affect the labor force (increase in elderly as % of population). The Chinese government does not pay cash, they use debt, and particularly it is the state and local governments who take on the most debt. And we Americans can criticize the Chinese because our government does not lock us in prison, beat us, torture us and have us publicly admit our grievances against the state when we voice concern, unlike China.
They are actually doing more than just holding up their chin and saying "there is no problem." From what I have heard, and this is admittedly limited, is that the PRC government is quietly putting money into the property market to keep prices up while also reforming rules regarding mortgages and speculation. At the moment I think the PRC is keeping quiet about this as to not set off a panic themselves through the steps they are taking. One thing that many China experts have pointed out is that the mortgage bubble should've hit the PRC already yet that hasn't happened. Anyway I fully acknowledge there are huge problems with the PRC but at the same time I wouldn't predict the collapse of it anytime soon. While the tight central control and lack of political freedom is a weakness when it comes to making pragmatic policy changes it is a strength.
I have no idea what the PRC is secretly doing, I only know that outwardly they like to paint a picture vastly different than reality. The mortgage bubble is only one of many bubbles they face. I do not think the PRC is going to collapse but I can see severe bumps in the road over the next 20-30 years.
When ROW is in the toilet. Awesome. Look, nobody apart from the crazies is saying the U.S. is going to fall apart by 2015 or 2020 (though candidly I'm not so sure about 2040, the maturity date of my "Freedom Fund" or whatever it's called now). At the same time, the report itself acknowledges that exchange rate plays a big part in short term change in relative wealth in the league table. There is no question that the U.S. continues to pump out the most desirable assets, including our currency. But let's not pretend that everything is peachy and none of the winning is attributable to something other than fundamentals.
True they are but they wouldn't be the first government to paint a picture different than reality. I am not sure this is as much denial as it is they don't want to set off a panic. Yes there are very likely several bumps in the road they will face and issues like the environment, official corruption are already catching up with them.
I went to China last year too.. Biggest issue I saw was I couldn't see more than 50 yards in front of me due to the heavy smog.. Sure sucked when I couldn't really see what was so Great about the Great Wall
