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I agree with you - its irrelevant to the discussion at hand. What I am merrily pointing out is that as china moves from a export oriented country into a servic
by wrong_variable 11y ago
I agree with you - its irrelevant to the discussion at hand.
What I am merrily pointing out is that as china moves from a export oriented country into a service based economy, Reducing its import/export is a target . Since their own leadership wants china to transition to a "new normal".
China has a huge cannon ( in terms of controlling a vast amount of humanity's capable hands ). It seems now instead of using it to awash the world with manufactured good they are refocusing it on services.
Measuring output from services is extremely hard - since its investment in human capital, rather than physical goods.
The point I am trying to make is that this is a good thing. It means their is going to be investment in law,education,fiance,software,intellectual property,health-care ...
This will give breathing room for other developing countries to take up china's slack and allow china to innovate in the place where it really helps humanity move forward. We all want cheaper healthcare and cheaper education.
TL:DR good news !
- partiallypro 11y agoIt's good news in the longer run (more than 2 years,) in the short run it can cause serious problems for global markets are they adjust to the new environment. The big time bomb from this is the debt market taken on by commodity based companies which could infect investment grade bonds.
- TheLogothete 11y ago>It seems now instead of using it to awash the world with manufactured good they are refocusing it on services. Yeah, that's easier said than done.