Please explain where China is failing their citizens? We cannot even afford houses in the West anymore, while they have 95 % homeownership rate in China. And there are many more examples like that.
China’s domestic consumption is very low, their exports are much greater than their imports, i.e. they provide the world with goods without sufficient compensation. Their population should be doing better and being wealthier. Their consumers are using real estate as an investment vehicle creating an enormous housing bubble. Home ownership is ridiculously expensive and there are mostly very small apartments at high rates. They are famous for constructing highly speculative ghost towns.
As soon as the promise of wealth in age starts to falter china may change fundamentally. And it seems like that may be coming soon rather than later.
I’m sorry, I have to say that some of your points sound like decade-old red scare topics:
The housing market got already deflated years ago. The Chinese government famously declared back then that “Houses are for living, not for speculation.” Prices still fall, with developers taking most of the pain, not families.
China has now a homeownership rate of ~96%. A number unheard of in the West.
Many mocked ghost towns are now economic hubs. Some stalled, but the trend is repurposing.
Per capita disposable income grew 5.4% annually during the 14th Five-Year Plan.
You’re right when it comes to exports: Dependency is a real challenge and also diplomatically not helpful. But at least the government says to address it. I cannot remember a time that Germany ever acknowledged that their export surplus is harmful?
Instead of predicting its downfall, we should start questioning our own political and economic system in the West. There seems to be much to learn from a socialist market economy like China.
Please explain where China is failing their citizens? We cannot even afford houses in the West anymore, while they have 95 % homeownership rate in China. And there are many more examples like that.
China’s domestic consumption is very low, their exports are much greater than their imports, i.e. they provide the world with goods without sufficient compensation. Their population should be doing better and being wealthier. Their consumers are using real estate as an investment vehicle creating an enormous housing bubble. Home ownership is ridiculously expensive and there are mostly very small apartments at high rates. They are famous for constructing highly speculative ghost towns.
As soon as the promise of wealth in age starts to falter china may change fundamentally. And it seems like that may be coming soon rather than later.
I’m sorry, I have to say that some of your points sound like decade-old red scare topics:
You’re right when it comes to exports: Dependency is a real challenge and also diplomatically not helpful. But at least the government says to address it. I cannot remember a time that Germany ever acknowledged that their export surplus is harmful?
Instead of predicting its downfall, we should start questioning our own political and economic system in the West. There seems to be much to learn from a socialist market economy like China.