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Look at the FSU, they had world class infrastructure and highly educated workforce and it is falling apart. If you don't have the money to keep it running, it turns to dust.
Beware, some CCP member on DFI would like us to believe that all of the above is fertile imagination of our mind and that nothing of the sorts is happening in CHina and therefore we don't have right to post such stuff on DFI.A workshop on the wane
The eastern Chinese city of Wenzhou produces more cigarette lighters and spectacles than anywhere on earth, and has long been seen as an economic trend-setter for the entire country. So reports that dozens of factory owners in the city have absconded in recent weeks, leaving workers unpaid and mountains of debt, are seen by some as an ominous sign for the national economy.
Slowing global demand for cheap Chinese exports, rising production costs and unsustainable levels of debt have combined to crush some of the country's most savvy entrepreneurs. In one tragic case, the owner of a Wenzhou shoe factory who owed more than Rmb400m ($63m) committed suicide three weeks ago. More than 90 other bosses have run away, according to state media.
But events in that city do represent a crucial turning point for the nation. "What's happening in Wenzhou is a reflection of the current Chinese model coming to an end," says Huang Yiping of Barclays Capital about the country's export-led, investment-driven growth paradigm. "China's economic success over the last 30 years has been built on cheap capital, cheap labour, cheap energy and cheap land but this has now produced huge imbalances and inefficiencies that are causing more and more problems."
"The drivers of China's meteoric rise are on the wane," says Robert Zoellick, World Bank president. "Resources have largely shifted from agriculture to industry; as the labour force shrinks and the population ages, there are fewer workers to support retirees; and productivity increases are on the decline."
Beijing's latest five-year plan, which runs from 2011 until 2015, is packed full of vows to increase domestic consumption and wean the economy off its reliance on exports and particularly investment. But leaders have been talking for more than a decade about achieving these goals, and in fact the reverse has occurred. Consumption fell from about 45 per cent of gross domestic product in the late 1990s to an unusually low 33 per cent last year. Investment has hit a global high of 50 per cent of GDP.
"When reforms began 30 years ago, the investment rate was around 25 per cent of GDP and the economy grew at around 10 per cent a year, but now we are investing half of GDP for the same rate of growth; that tells you something about capital efficiency," says Mr Huang of Barclays Capital.
For more..
A workshop on the wane - FT.com
Well, it seems you are the one misunderstanding all the picture.Here is another gloom scenario of China from Financial Times
Beware, some CCP member on DFI would like us to believe that all of the above is fertile imagination of our mind and that nothing of the sorts is happening in CHina and therefore we don't have right to post such stuff on DFI.
The reality is worse with 70% of GDP reliant on fixed investment including land salesit seems this so called chart of tendency is MADE by someone, not actually Happened yet... just a opinion of somebody or some party...
It isn't export lead now because it is reliant on construction and land sales. The export sector has been stagnant since the global downturn.according to this chart, china economy is not an Export Orientation model at all as many member thought here...
e.g.. in 2002 consumption and investment as %GDP was 42% and 43%
and in 2010 they were 36% and 46%
Actually China didn't become an investment lead economy until the global downturn and it wasn't an orientated part of the economy until the 1990s which a few years later lead to the banking crisis of 1997-99. Here we are a few years after the another global downturn and China is set for another crisis. It will be interesting to see if she can dig her way out of this hole that is 5X bigger than the last one.what a great chart! LOL....actually China economy was always an Investment Orientation Economy from 1950's to early 1990's... this author had no basic sense.
The reality is worse with 70% of GDP reliant on fixed investment including land sales
China's GDP Growth of 10 Percent: Should We Believe It?.
-------------------
another interesting thing is :
It isn't export lead now because it is reliant on construction and land sales. The export sector has been stagnant since the global downturn.
Actually China didn't become an investment lead economy until the global downturn and it wasn't an orientated part of the economy until the 1990s which a few years later lead to the banking crisis of 1997-99. Here we are a few years after the another global downturn and China is set for another crisis. It will be interesting to see if she can dig her way out of this hole that is 5X bigger than the last one.
May be that is what happens if you depend on Shanghai bean-counter statistics that come out of China
it seems this so called chart of tendency is MADE by someone, not actually Happened yet... just a opinion of somebody or some party...
Economy is still a major contributor of GDP. But the figure above shows net exports (or rather trade surplus) not absolute exports (net exports = total exports-total imports).-------------------
another interesting thing is :
according to this chart, china economy is not an Export Orientation model at all as many member thought here...
e.g.. in 2002 consumption and investment as %GDP was 42% and 43%
and in 2010 they were 36% and 46%
what a great chart! LOL....actually China economy was always an Investment Orientation Economy from 1950's to early 1990's... this author had no basic sense.
LOL indeed China's economy is not doom and gloom becauseIf China's economy is doom and gloom now, then no country is good now.LOL
LOL indeed China's economy is not doom and gloom because
80% of High-speed railways works not stopped
54 HSR trains not recalled
Railways workers are paid months together with bonuses
People are not suiciding in Wenzhou.
The company bosses in Wenzhou are not running away
The Chinese banks have no NPA assets
The Chinese banks are still on a lending spree
The apartments, cities and malls all over China are so much completely filled up that there is not even one empty apartment available in China
The Chinese RMB is not artificially pegged against US Dollar and
Chinese Railways or Road projects are not facing cash crunch.
Indeed China's economy is hale and heart that makes all CCP members to LOL at foreigners
PS: Before you reply please check in dictionary what sarcasm means
If it said by u, it must be true.LOLAll of them are better off than your bubble popping economy.
LOL... plz leave that poor kid alone :bounce:All of them are better off than your bubble popping economy.
Sure, i will.LOL... plz leave that poor kid alone :bounce:
I should, it must be difficult enough watching his Ponzi economy crumble.LOL... plz leave that poor kid alone :bounce:
then some country is back off when they facing a doom and gloom economy.LOLI should, it must be difficult enough watching his Ponzi economy crumble.
So says the "Frenchman" who hates China so much he left his country's "booming european economy" to come live off our "doomed economy".I should, it must be difficult enough watching his Ponzi economy crumble.
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