Its all very well to say they are exporting cheaper goods. This is going to entry level primary and mineral industries losing value added profits. The steel industry alone last time I looked was in $300 billion USD debt and losing money.
China debt in 2014 was 300% GDP and its probably more.
Chinas debt from 2000 has gone from $2 trillion to $28 trillion.
They have everything against them.
1 They have falling resource prices which effects their profits for value added goods because they purchased input product too high and have to make a loss on resources and primary product to be competitive.
2. They rely on cheap labor for efficiency which has lead to bad economic practice.
3. They have the goal of economic domination of markets which has resulted in high inflation and created a high debt.
They will either fail though debt and or fail though being uncompetitive.
The only way to keep competitive is though debt which as we have seen lead to the fall of the US.
I can think of one company GMH. Maybe that's a good way to put it. China is like a giant GMH.
