Quote Originally Posted by Win2Win View Post
Due to the fast growth in China, wages have increased around 300% in the last few, and along with the recession, a lot of Western companies are now moving to cheaper locations like India, Vietnam & Cambodia. This move will continue to increase as wages still rise. The Chinese economy will peak and crash at some point, economies never grow continuosly.
China did a great global marketing job when it tempted our captains of industry.
It opened the eyes and the pockets of the west to a source of cheap and dependable labour that allowed an instant boost to profitability.
Those who took us there were so blinded by short-term gratification, that they have now pretty much doomed much of the European and American manufacturing.

Almost like to waking up one morning and finding that not only did all those manufacturing jobs disappear, but realising they ain't ever coming back.

An economic future irrepairably damaged by Chinese economic principles.

C'mon guys, the world has changed and continues to change right before our very eyes.
The kinds of economics we all studied so well no longer work. Chinese is the new economic model. Nationalistic protectionism
Most of the world learned from us for over 100 years. I just hope we can adapt to now learn from others all we can about nationalistic protectionism and a new buy British campaign.

It's too simplistic to simply suggest economic collapse and doom for China.

I agree that there will come a time, as has happened before, when China will need to re-balance it's economy.
Yes, China will eventually shift it's strategy from cheap labour, exports and it's huge foreign investments, to an new strategy of increasing domestic consumption. And what an absolutley huge domestic market can be cultivated.

Yes, increasing wages, increasing energy costs and increasing commodity prices are giving rise to escalating inflation.
All these factors are undoubtedly impacting the millions and millions of poor families hard. China knows very well what the future challenges are and just how intense they will be, and just how to turn those to domestic advantage.

This current global recession has taught China a valuable lesson, that it needs to move the economy up the value-curve and focus more on domestic demand. Even if it means outsourcing to cheaper production like Cambodia etc.

China understands it's weaknesses of low interest rates and self manufactured weaker currency and uses both to it's advantage despite global protests.
China will continue to avoid cheap money, but we can all expect them to further increase their debt purchases, their loan quotas, rising bank reserve ratios, and their gradual increases in their interest rates to the western debts.

Do some research, it's easy to see that China’s nationalistic protectionism and perfidious economic strategy is for real.

Look at the investment and buying strategy of China globally, especially in Africa where Europe once dominated and benefited.
Look at what China is doing in Eastern Europe, Asia and India also. Look what already happened in Hungary, and what will happen in Poland.

Just look how I've gotten all wound up again and jumped back up on my soap box.