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To: Texasforever
China is in direct competition with other 2nd tier economies and they are developing far faster that yours. India is a prime example. More advanced politically and more entrepreneurial that China

Ha, you are seriously out of tune with reality. China gets the vast bulk of foreign investment of any developing country. China gets 20 times what India gets. In addition, democratic Latin America is experiencing a political and economic crisis as we speak requiring multiple IMF bailouts. In addition, China's growth over the past 20 years has been the fastest in all of human history, even faster than the Asian "tigers" during their heydey. There's a new article today in Japan's leading business newspaper about how China today is reponsible for 54% of all electronics manufacturing.

216 posted on 08/15/2002 10:10:39 PM PDT by AIG
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To: AIG
China gets the vast bulk of foreign investment of any developing country.

You are making the same mistake Japan did. They were just like you after the war. Their domestic economy grew at a fast rate because of offshore investment and cheap labor. Japan was seen as the next super power economically. They were rolling in dough and they provided workers to the world. Then those workers started demanding a share of the pie. Gradually labor costs rose to, at one point, higher than the United States, foreign investment dropped and now Japan teeters on the brink of bankruptcy on a consistent basis. You are making your predictions based on the number of warm bodies you can put to work. That is a double-edged sword because at some point they will demand their share of the pie and given China's history, that will end in one of two ways. Another revolution or rising labor costs that will result in having to compete on an equal footing with regard to the labor costs. China has one real asset available on which to base its economy for the foreseeable future and that a tremendous supply of un-skilled labor. Once that labor is too expensive, that advantage becomes a liability.

221 posted on 08/15/2002 10:21:02 PM PDT by Texasforever
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