4 ms·
Yes, but what will China do with the goods it manufactures? If they have the internal demand to consume them, that's good. If their plan is to sell exports to W
by matthewdgreen 5y ago
Yes, but what will China do with the goods it manufactures? If they have the internal demand to consume them, that's good. If their plan is to sell exports to Western nations then they need to be strategic. TFA is about sanctions being extended to Chinese firms that invest in Russian energy firms, but one could imagine a spiral where the sanctions expand to other Chinese firms that produce manufactured goods ("embodied energy") as well. We're not there yet, but it is a possibility.
- deutschew 5y agoIt will raise the cost of goods to the point which will be forced upon the consumer which will not be able to afford it. Already unemployment is rising rapidly in China as is inflation, when Chinese people find they can no longer afford a roof or basic foods, they will have nothing to lose. This is what Xi fears, death of domestic demand.