Rise of the Sleeping Giant

Discussion in 'General Trading Discussion' started by gracer, Apr 16, 2015.

  1. gracer

    gracer Senior Investor

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    China is continuously rising economically posing a threat to the US in terms of business. Despite the strict authoritarian rule of its ruler Xi Jinping, China's rise to economic power is becoming more evident. Needless to say that it rises amidst limitations with the internet which is obviously an important factor when it comes to business and transactions. What would happen if limitations with the internet will be lifted? Do you think China has the potential to rise above the US?
     
  2. Rainman

    Rainman Senior Investor

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    China rose above the U.S last year.

    http://www.foxnews.com/world/2014/12/06/china-surpasses-us-to-become-largest-world-economy/
    In as far as average earnings per individual is concerned it will take a really long time for the gap to be bridged and lifting internet censorship won't fix that but should investors believe that would make their stay in China more comfortable then who knows, if more jobs are outsourced to China, the Chinese workers in time would end up earning more than Americans.
     
  3. JoshPosh

    JoshPosh Guest

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    We need to put restrictions on how much china can export to the united states and the United States needs to bring back factories and make "made in the usa", mean something again. Not a easy task I know. China can do things for much cheaper then we can, and places like Walmart love to buy cheap and sell for a profit to the American consumer.

    Nor can America bring down the minimum wage any further to stay competitive with china. Labor groups will scream for pay hikes, when the factory is already losing ground on cheap china labor. So in a way we did this to ourselves. We let china in the front door, and now they don't want to leave cause the own majority of the debt.
     
  4. Onionman

    Onionman Senior Investor

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    China's already at US's level in some ways. Not in terms of per capita GDP, but when you factor in a lot of random variables like the amount of PHDs they're generating and the amount of US Treasuries the country is holding. It will be interesting to see how things evolve over the next decade, as it will be difficult for China to sustain the 8%+ growth it was seeing per year. China's labor costs are also rising a fair bit, which is why Chinese companies are even outsourcing some of their production to places like Vietnam and Thailand.
     
  5. turt

    turt Guest

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    I think China's growth is going to slow in the future. As citizens demand more pay and American technology gets better, less manufacturing will require Chinese labor. It's not hard to get around China's firewall anyway.
     
  6. Hedonologist

    Hedonologist Well-Known Member

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    The China has the potential to rise above the US, even if GDP per capita only rises to half that of the US, it has the population behind it. The US is in decline and China is rising, eventually the two will cross.
     
  7. JR Ewing

    JR Ewing Super Moderator Staff Member

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    China has definitely slowed.

    Of course from a consumer standpoint they are always going to be consuming huge amounts of goods, products, and services because of the population.

    Some believe they are headed towards their own credit crisis.
     
  8. dianethare

    dianethare Senior Investor

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    Well in this life anything and everything is possible, if they embrace the internet, throw the limit out of the window, the sky is just the starting limit for China...my $0.02
     

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