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I have a hunch that the cluster and agglomeration effects that has fueled China's growth will slow as their economy becomes more advanced, and I can envision a
by 40acres 8y ago
I have a hunch that the cluster and agglomeration effects that has fueled China's growth will slow as their economy becomes more advanced, and I can envision a fracturing of the global economy where the U.S and China stand as the two main axises based on what type of industry you're in.
What advanced economy will want to purchase Chinese aerospace or semiconductor products knowing all that we know regarding backdoors and their reputation for spying? Now of course, the US traffics in the same sorts of tactics but once China and the US are on level playing fields there will be other factors that determine whether or not you invest in China or the US: an alignment of political systems seems to me as an important factor.
As an analogy, as a renter I've furnished my apartment with Ikea almost exclusively: it's cheap, good enough, and I have no problem throwing it all away when I have to move. But once I settle down into a home, I'll want a product that is more stable, and has more built in quality to it. China is great for low to mid level manufacturing, but are you really going to trust the current regime for investment in mission critical systems?