The Fall of China Business

If you were more intelligent than you are you'd think through the implications of what you just wrote. Since I'm in a generous mood, I'll do that task for you.

China's low per capita GDP means that for all its present wealth and strength, it still has enormous room left to grow. You might bleat something about "middle income trap" - it's one of those magic incantations your ilk use to dispel your fear of China. Suffice to say, you misunderstand the middle income trap profoundly, and where the theory does have merit it doesn't apply to China for the simple reason that cities like Shanghai and Shenzhen (and many others) are already far past middle income and can generate the capital necessary to raise the other parts of China.

If China has the per capita GDP of Botswana today and it's strong enough to have you pissing yourselves, just how strong is it going to be tomorrow?

/r/China Thread Parent