RazorMC
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When Japanese economy started rolling every one thought Japan will eclipse USA economy. Contrary thing happened Japanese economy become stagnant for almost 20 years now.
The same thing is going to happen China and the signs are there.
1) Rising wages
2) Aging populations
3) Housing bubble
4) Deceasing GDP growth.
The predictions may project China to be an economic giant within 20 to 30 years eclipsing USA but the reality may be completely different.
Chinese followed the same model of Japanese, the results will be the same.
Yes, an export-driven economy will stagnate at some point. Eventually there will be a limit to what the US and EU markets can import.
But China also has a rapidly growing consumer market for its own products. Will it be able to provide the same support it did during the recesion? We will have to see.