I don't really have time to educate Chinicites because you don't want to understand or maybe you don't have the capacity to understand.
China is doing a lot of investment yes but that is not connected to consumption. Investment will increase consumption and create jobs but China's population is still dirt poor compared to Europe. Per capita purchasing power in China is similar to purchasing power of a stray dog in Europe. In addition your whole economy is dependent on US and Europe, your enemies.
China HAS to keep up growth rate, without that, their economy will fail and the growth rate for China is already falling like a rock. Most economist say that China, how hard they try will face economic crises because demand for cheap chinese shyte is declining and US is already moving production to third countries.
There is overwhelming poverty of China, where 900 million people have an annual per capita income around the same level as Guatemala, Georgia, Indonesia or Mongolia ($3,000-$3,500 a year), while around 500 million of those have an annual per capita income around the same level as India, Nicaragua, Ghana, Uzbekistan or Nigeria ($1,500-$1,700). China's overall per capita GDP is around the same level as the Dominican Republic, Serbia, Thailand or Jamaica. Stimulating an economy where more than a billion people live in deep poverty is impossible. Economic stimulus makes sense when products can be sold to the public. But the vast majority of Chinese cannot afford the products produced in China, and therefore, stimulus will not increase consumption of those products.
At the end China will face major financial crises. The prediction is that central government will loose control. Southern and eastern China will undermine Beijing to attract investment from Japan. You will loose other regions as well. You can believe in the Chinese miracle but a paper tiger will always be a paper tiger.
Clearly you have an extremely limited knowledge of basic economics.
So let me take some time to teach you some basic economics.
Right, let's get started shall we..
First you need to learn the difference between per capita vs consumption power.
It's not the per capita that matters, it's the total number of people that have a middle class by international standards that matter.
For example, China has just as many people that earn a salary of $50,000 as that of the US.
This means the total number of people considered middle class is just as big in China as it is in America.
Just like comparing how many millionaires and billionaires a country has. It's the total number of people earning a salary of $50,000 that matter, not per capita.
The reason why per capita is an inaccurate measure of the total
consumption power of a country is because a country with a large population like China has millions of rich people and millions of poor people. So when you add the poor people and the rich people together, you get a lower per capita number because the poor people drag down the per capita figure. But it's those rich people that does the consuming.
For example, America could have 200 million people that earn a salary of $50,000 and China could have 200 million people that earn a salary of $50,000.
This means each country has a population with the same purchasing power. 200 million Chinese vs 200 million Americans.
This is why you never apply per capita when discussing TOTAL consumption power.
A country like Australia which has a population of 20 million will never have a higher total consumption power than China which has 1.3 billion people.
Even if every Australian has a salary of $50,000 (which means very high per capita), they still cannot out consume a country like China which might have 40 million people with a salary of $50,000.
In this scenario, Australia will have a much higher per capita than China since every Australian is rich. But since China has many poor people in addition to the 40 million rich Chinese, China's per capita is very low.
Which country can consume more in this scenario? 20 million rich Australians or 40 million rich Chinese?
Of course it's China. Why? Because China has TWICE as many rich people as there are in Australia. In fact, China has more rich people alone than there are people in Australia.
That's the difference between consumption power, purchasing power and its relation to population size.
Always remember:
A large population with a few rich people will always be a bigger consumer market than a small population with many rich people. Big is better!
The high per capita in a small populated country doesn't mean it will be a bigger consumption power than a larger populated country with low per capita.
You have to factor in the poor people into the per capita figures which distorts the true consumption power of the large populated country.
Now....
Next thing you fail to realise is that investment is the major growth engine for every economy. The struggling economies around the world have a lack of investment not a lack of consumption. Investment drives the growth of an economy. For investment you need capital. China has the largest gross savings in the world. This allows China to rapidly invest in the economy which translates to consumption and job creation.
This is why when investment declines, economies collapse even though consumption is very high.
China is not an export economy, China is an investment economy. Investment contributes 50% of the economic GROWTH to the Chinese economy. Investment in infrastructure, private investment to make goods & services, property investment all form part of investment. Because China has ample savings to continue the investment, the Chinese growth rates will not come down for a very long time.
As I said before, your economic knowledge is ridiculously limited. It's quite incredible you don't even realise basics such as the difference between per capita and total consumption power.
When you learn the difference, come back to me kid
