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I seriously doubt China will go into economic collapse like Venezuela, but I think in the next 5-10 years once growth is down below 3-4%, the economy will start
by yladiz 9y ago
I seriously doubt China will go into economic collapse like Venezuela, but I think in the next 5-10 years once growth is down below 3-4%, the economy will start to suffer and people will become uneasy because the economy is affecting how much they can buy. Probably the biggest domestic economic issue you pointed out is the debt to GDP ratio, which is very high, but may not be an issue depending on how China deals with the impending developing to developed country situation. I think that the two largest issues that will face China in the next decade or two are 1) that manufacturing and electronics jobs like at Foxconn will move to countries where labor doesn't cost as much, unless China is really smart and opens up powerful trade deals with certain countries (which it wants to spearhead with the downfall of TPP); and 2) South China Sea will likely become a major point of contention between its neighbors and could lead to a major cooling of relations with bigger economies like USA and Japan. NK possibly could be an issue but only if it becomes war, which all parties including NK want to avoid.