The end of China

 

 

I am still thinking aloud..... You can call this a pre-humus piece on the death of the communist republic China’s economic bravado.

 

I don't have much statistics to brandish here and now but China is indubitably giving the USA, BRITAIN and the rest a good run for their money. Looks like China is cashing in and firing on all cylinders. Isn’t it interesting that everybody seems to be trading with communist China? Even the USA is strengthening ties with our darling China. Don't blame the USA. He who pays the piper surely dictated the tune. With a staggering debt profile, USA must remain loyal to the communist republic of China. The bigger view is also the seeming failure of American capitalism. Has American Democracy failed compared to China Communism? I perceive a war of Ideologies here.

 

China is not only flexing its muscles alone in the economic hallway. The military strength of China seems to be maturing with an unrepentant occupation of the earth by its citizens. Chinese must be saluted for their unwavering and undeterred exploration. They sure know how to find Gold. Of course, with a population of over one billion and a corresponding cheap labour, China has become manufacturers' destination. Most American companies have moved their production units to China for survival. While America is badly hemorrhaging, China can't be bothered. China is comfortably a contending world super power.

 

I wish China well but whatever goes up must surely come down. This is the law of gravity which seems to catch up with most phenomenon. If gravity then must catch up with China, in what form will that happen? How and when?

 

It is hard to say whether or not China will find it hard to sustain its competitive advantage but it goes without saying that time will definitely tell. I have an understanding however that the impending wave of technology in manufacturing may turn out to be a major Achilles heel for China. I am referring to 3D printing. This phenomenon is without gainsaying disruptive. This technology promises to reset the manufacturing industry in which case the current labour advantage that China enjoys may suddenly become its undoing. Don’t forget also that the Yen remains comparatively weak compared to the other global currencies.

 

So as not to appear as casting aspersions on China, the moral of this piece is to challenge China and its communist regime. I speak as an oracle and alarmist extraordinaire with my risk management lens. What can go wrong for China?



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