Cheap Money Boom

China’s economy is now the second largest in the world but fears that it will soon eclipse the USA are misplaced. Importers know they should never rely on a single supplier are looking to diversify into Vietnam, Indonesia and other countries with lower wage costs. Chinese workers starting to enjoy Western lifestyles in Shanghai, Beijing and Hong Kong are unlikely to accept low wages and long, monotonous hours. So China is making huge investments in higher education to help them produce higher end products to migrate up the value chain and drive higher margins. However, economic projections are little more than guesswork and as was seen in Japan an export economy supported by an undervalued currency does not boom forever.


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