Can China de-couple from US and survive on it’s own internal demand?

Just got back from Beijing 2 days ago, been all over China the last 2 years. Very conflicted on future of China. However, US and China seem to be moving in opposite directions. Key will be whether China can de-couple from US and survive on it’s own internal demand. They seem to be moving there.

China has to grapple with huge populations of poor rural population that they are trying to integrate into the cities. They must maintain this pipeline and thus large GDP growth to find jobs for the masses. China has beautiful lush farmland, but it is being worked manually and very inefficient.

Things are definitely slower in Shanghai and Beijing, and Tianjin. Shopping malls which put ours to shame all have 50% or more sales. Cranes which dominate the skyline are mostly not being worked. Took bullet train from Beijing to Tianjin, 200 MPH, new modern train stations, bullet trains, new freeways connecting major cities. However, more beggars in the street, less people working, horse-drawn carts in the middle of Beijing, this was not seen during the Olympics or the run-up to the Olympics.

Have not been to the manufacturing towns recently, but these are real hell-holes. The major cities, which are the financial centers are still bustling with shoppers and activity, but it has definitely slowed. There is real danger that China has grown too fast and they are due an adjustment. Very large potential for social unrest, are starting to see this. There is large gap still between haves and have nots. Much wealth being created, but not shared with the basically slave labor in the factories.

However, China is doing many things right to secure their future that the US isn’t.
-Trying to reign in corruption, is the US doing this?
-Significant infrastructure improvements already in place.
- China securing investments and commodity and mineral rights all over the world-What is US doing?
- China increasing and modernizing their military.
-Attracting investments, innovation, and professionals to China-The brain drain has now switched directions.
-Chinese nationals now moving back to China-to a better economy. Expats are now leaving China, no work for them.
-Because of US economy and Wall Street Debacle, they don’t want to do business with us, joint ventures are down and they don’t need us any more.

Solutions: Forget what China is doing, US has to de-couple from China. We either sold to them or they stole from us our trade-secrets and tech know-how, They used us and we let them. They go into business with us just to learn from us and then to discard us. They have a huge population that needs to be put to work, there is no room for permanent goods and services from the US. Many US manufactures have given up on China already. They placate us by letting us open McDonald’s and KFC’s all over, Sure these are doing great there, but given time, they will copy us, like they copy everything else and open up McWang’s.

The greedy US businessman who outsourced to China, now has no customers for his China produced goods- unless you count the people behind the counters at Wall-Mart and fast food joints

2sexy2fail

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• A nation borrowing its way toward financial insolvency is not staging an economic recovery even when GDP picks up and the stock market rises.
• Experts said again, “China’s economy has bottomed out.”
• Why the Great Depression lasted so long
• Any rise in interest rates will speed up the collapse.
• What could we, the people do to bring manufacturing jobs back? Open our own factories?

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