Precisely. It will be a tight rope to walk on for the US. But it's still dangerous to China and can't be dismissed out of hand. Especially in a hypothetical situation where a world event involving China and Taiwan is used by US to try to turn China into a political pariah. In a way, it might be a taiwan doomsday clock device. China being unlikely to try anything with Taiwan before USD ceases to be world's reserve currency. Even if it's decades. (Lots of stretchy definitions there, i know)
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Chinese Economics Thread
- Thread starter Norfolk
- Start date
Most people don't understand the role finance plays in the economy.Yes.
The other point to make here is - financialization of an economy could be a good or a bad thing, depending on the initial starting point of an economy.
For some reason 'financialization' has been deemed as a dirty word on this forum when it comes to describing an economy.
Just because the US economy is over financialized, does not mean that financializing the Chinese economy is a bad thing.
I also think that, and I've been guilty of this, calling US "over-financialized" gives readers the wrong impression of what's wrong with the US economy. The problem isn't that United States has a very developed finance sector. The issue is that United States has not developed other parts of its economy well.
Just to give an example (not addressing this to abe, but to people generally), the root cause of high housing prices in United States isn't the low interest rates. The root cause is lack of housing supply and lack of alternative investment opportunities. If both conditions were satisfied, housing prices in United States would never be that high.
So, I hope people don't view further development of China's finance infrastructure as a bad thing, but as a very positive development instead.
China’s demographics are heading in the same direction as South Korea’s as its robots density is doing the same. Coincidence? Certainly not. As I’ve always said: South Korea is a preview of the future in a more exaggerated form because of its smaller size & insulated culture. What they experience now, China will experience in the near future.
Not necessarilyChina’s demographics are heading in the same direction as South Korea’s as its robots density is doing the same. Coincidence? Certainly not. As I’ve always said: South Korea is a preview of the future in a more exaggerated form because of its smaller size & insulated culture. What they experience now, China will experience in the near future.
China’s population is much larger, more buffered against lower demographics. I’m pretty confident if the central govt wanted to, they would be more successful in reversing the fertility rate than South Korea. heck they already started with the controlled deflating of real estate.
Personally I think China will still prioritize high intensity work at the expense of the fertility rate at least for the next few years as they need Chinese companies to catch up and become dominant in high tech core technologies before Chinese companies are as dominant as US companies with higher revenue and higher margin products to give their workers more work life balance, higher salary, and more work life balance. then they may spend more resources on tackling the fertility rate.