Thread: New chinese MBT
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Old July 5th, 2005, 12:44 PM

narwan narwan is offline
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Default Re: New chinese MBT

China is no way near superpower status and won't achieve it in the foreseeable future, if ever. It simply hasn't got the economic basis for it.

Statistics can look impressive but don't mean anything out of context. China's economic growth is build on quicksand. Remember the fear of a japanese (economic) takeover of the US in the 80's? The threat of the booming asian tigers in the 90's? Those didn't quite live up to the expectation and neither will China now. For one thing (among many) it's economic progress is kept alive by a government vouching for loans by business (often run by relatives, cronies, etc). However a default percentage of up to 40% is already being expected on those loans. Ouch!
When the chinese economic bubble comes crashing down it'll make the earlier asian ones (japan and the tigers) look like nothing. Especially since china has managed (very cleverly!) to integrate parts of the US economy and US companies into it's bubble.

Narwan
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