The view in most of the world is that China is indestructible. Shrugging off the crises multiplying elsewhere, China seems to surge from strength to strength, its spectacular growth marching on no matter what headwinds may come. It appears inevitable that China will overtake a U.S. mired in debt and division to become the world’s indispensable economy. Those businessmen and policymakers looking to the future believe China’s “state capitalism” may be a superior form of economic organization in dealing with the challenges of the modern global economy.
My answer to all of this is: think again.
I don’t doubt for a second that China will be a major economic superpower with an increasingly influential role in the global economy. In many respects, it already is a superpower. But that doesn’t mean the economy is free from problems, a good number of them created by the very statist system lauded by pundits in the U.S. and Europe. And in my opinion, if China doesn’t change course, and in a big way, the country will experience an economic crisis…
- China ‘risks economic crisis’: World Bank | Bangkok Post: news (jobmarketmonitor.com)
- China | Hu Jintao stresses employment – Xinhua | English.news.cn « Global Job Gap, Local Skills Gap.
- Shanghai Raises Minimum Wage 13% as China Seeks to Boost Consumer Demand – Bloomberg « Global Job Gap, Local Skills Gap.
- China Hits Turning Point; Jobs Coming Back to the U.S. « Global Job Gap, Local Skills Gap.
- Migrants elbow for Foxconn jobs despite labor probe – Business LIVE « Global Job Gap, Local Skills Gap.
- It’s Time to Bring Manufacturing Back to the U.S. – David Simchi-Levi – Harvard Business Review « Global Job Gap, Local Skills Gap.