Why China Isnt Happening Yet

CW,
Being outside of the US, the concern shared by many economists is over ever increasing US household debt rather than:
- pension schemes (as defined contribution has effectively moved the risk from employer to employee), and
- medical aid (as innovative products are providing some solutions).
This debt is not gravity defying and at some point in time, could trigger some economic nasties...

Both China and India will have larger economies than the US and probably sooner than 2035! Being the 3rd largest world economy is not a bad thing its just basic maths that Chindia will be bigger. The good news is that this growth alleviates poverty and lifts living standards the world over.

The US challenge is to benefit from these events and so far, it seems to be going in the wrong direction (especially post 911). Consider the fact that a weaker dollar has not feuled US exports and instead, it continues to be a net importer. US politicians are demanding revaluations of the Chinese currency to achieve some sort of trade balance. These are temporary solutions. Permanent solutions are needed.

As Chindias domestic economies gain momentum its reliance on US exports becomes less important. Where does this leave the US?

The world needs a strong healthy US economy. I'm worried.

Jea48, you really should get your facts straight. It's so easy to put a large umbrella over everything. Do you know why virtually every country wants to do business with China right now? Do you know why many are saying China is going to be the world's biggest market for consumer goods very soon? Do you know why they are already the largest cell phone market? Besides indicating the sheer size of their population, it also suggests that Chinese consumers have money to spend. In Hong Kong, Chinese tourists are touted as the reason for their recent economic revival.

Of course there are poor people. Maybe where you live, you don't see any when you look outside. But it exists everywhere. And the poorest people and the worst conditions tend to be found in the most developed and "rich" cities. And you do know that one of the reasons China became Communist in the first place is due to the US government.

As far as chinese audio equipment goes, I have to agree with those that have observed that it is a mixed bag. Some components, such a the Antique Sound Labs pieces I've handled have been very cheaply manufactured and poor values in my opinion. On the other hand, the Cayin stuff that I've played with is very well made and an excellent value.

As far as "worrying" about China's future in world commerce, etc., I have to agree with Danlib1. China has shown a greater historical propensity for self immolation than any other nation in human history. The Chinese developed technology and social structure that predated similar western developments by hundreds, to over a thousand years, and yet turned inward and regressed. The nation has done this more than once, and could easily do it again. The fomula is in place for just such an occurrence as it is run by a small authoritarian group that will tolerate the newly "liberalized" economy as long as it doesn't substantially threaten its hegemony. As money buys power everywhere, I don't think it will take long before some neuvoriche industrialist oversteps the tolerance of the regime. Recent events in the Russian energy industry may be particularly instructive. We'll see, I guess.