China's Economy Grows 7.3%, This is Bad News

[Captainn]

Ok, so no one knows for sure if it is good or bad?
Well, for me, I still think cheap Chinese stuff in store is good :P Save me a few to buy beer at least.

I think it'll be good in the long run. Investment will go to other nations. They'll still find cheap/mechanized labor...

[Spectral]

Why would we not expect a growth rate to regress to a normal growth rate after their economy gets closer to being fully industrialized?

[Deleted]

China was a late bloomer, their growth would decrease sooner or later

[Hyve]

Everyone with a slight interest in the Chinese economy and some basic knowledge of ... well, stuff, knew that it'd slow down.

China has however done one very smart thing, invested else-where. Once China itself starts to lose a lot of economic might, it's investments over-seas will continue to support it. They've earned a lot of land and rights in Africa for building simple highways and parts of the infrastructure, they've got immense investment in the U.S. economy and the E.U., so they'll never (not literally never, of course) succumb to the level of economic crisis that the rest of the world did.

They've played this whole thing smart. They've made themselves a vital part of the world economy and as such everyone is going to be doing their best to keep them going, but at the same time they've made sure their own are looked after, that China itself always has the capability to do what it needs and wants to do.

While other nations are all off running around, providing and helping others, China has been doing so as part of deals, to secure themselves a future in a lot of different industries and countries. We ought to take a lesson from them, but learn from some of their mistakes.

[Hiricine]

Heres what you need to know about China.

They've been producing more goods than the rest of the world for a while now. They've taken the massive profits they've made, and basically invested them in raw goods, infrastructure, and production to some extent.

Their goal is not to be a large producer, they are looking to become the new economic standard for the world. They have been the no.1 purchaser of gold and US bonds for a while now (while we are in debt, they are our lenders). In short, they have MUCH more money than the rest of the world, and their ultimate goal is to shape their economy just to rely on their economic investments.

If you want the simple math on this one, China has been able to afford to buy huge amounts of American bonds because of its growth. Soon, it will have to start selling those bonds (lowering demand for them, increasing the interest rate). The good news is that the immediate effect will increase the worth of paychecks and cash on hand for the rest of the world. The bad news is that goods will start to be more expensive as China begins consuming them rather than producing them, and that the US will not be able to afford the higher interest rates, and will buy its own debt to keep the rates low (the only alternative is to lower other spending to afford the debt). The effect will be a dramatic reduction in worth of the American dollar, while increasing the value of commodities and goods.

TLDR, as china stops producing and begins consuming, get all your money into durable goods.

[Xargoth6634]

OP is just using the forum to promote this comic.

Pretty much, yeah.

[Elegiac]

Myanmar only just opened back up to the world. Give it time, and the clothing factories will move from Bangladesh (where wages are rising) to Myanmar. Myanmar will go through its sweat shop phase, and will mature into a stronger economy.

I think you mean Burma.

[Reeve]

Everyone with a slight interest in the Chinese economy and some basic knowledge of ... well, stuff, knew that it'd slow down.

China has however done one very smart thing, invested else-where. Once China itself starts to lose a lot of economic might, it's investments over-seas will continue to support it. They've earned a lot of land and rights in Africa for building simple highways and parts of the infrastructure, they've got immense investment in the U.S. economy and the E.U., so they'll never (not literally never, of course) succumb to the level of economic crisis that the rest of the world did.

You make that sound much less predatory than it has actually been.

[Deleted]

China's economy thrives on creating illegal and fake products. Working at customs myself I'm shocked with how much money a day people buy Chinese...everything...there's not a single thing they don't replicate.

It's only one of the problems but it's very troubling that that so much income comes from this market.

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Why would we not expect a growth rate to regress to a normal growth rate after their economy gets closer to being fully industrialized?

They should have a more stabal economy in the long run I would expect, the advantage of being the late bloomer is that when you catch up you are actually more advanced in everything.

[Rukentuts]

Why would we not expect a growth rate to regress to a normal growth rate after their economy gets closer to being fully industrialized?

Because it's a government-run ponzi scheme.