".....the banking sector is dominated by state-owned banks that can lend at will at low cost certainly has its advantages, and is a prime reason why China's economy may be expected to continue to grow in the 9-10 percent range for the coming decade and beyond." "Another reason is that China's population is becoming wealthier -- and not just in the country's coastal cities. A 2010 report by the Brookings Institution says that China's middle class is poised to rise significantly not only because of the country's economic growth rate, but because more Chinese are continuing to break out of the ranks of poor. It is estimated that consumer driven domestic consumption will account for up to 50 percent of GDP by 2015, up from 33 percent last year. That is a guarantee of high growth going forward."- Hufffington Post, 12-15-10
RE: "consumption will account for up to 50 percent of GDP by 2015, up from 33 percent last year"
Great for the 400 million or so.. but what about the per capita consumption of the 800 million rural citizens? Things are going swimmingly and no more civil unrest?
.. and what happens to the rural poor when they go to work in the cities? I think they've about had it up to here.. and who are the wealthy in Red China? "factory owners are mostly privileged children of party officials -- 90 per cent of China's billionaires are the children of senior cadres"
The day China's sweatshop workers rose up in mutiny and looted the plant
BTW, "consumption will account for up to 50 percent of GDP by 2015," if it had been say 1990 that Deng's "Socialism with Chinese Characteristics" had that kind of domestic consumption and Red China proved that it had some advantages way beyond mere cheap labor then things would be a lot better vis-a-vis Red China and the rest of the world. IMO. For one thing they would not have had to steal and extort western intellectual property.