Their stated priority is employment & infrastructure development. With the unheralded debut of Chinese utes & 4x4's into Australia recently,I would say quite a bit will go into increasing production capacity for their domestic & export motor vehicle industries.The Chinese have had a taste of materialism, so of course there will be a demand to be met in "un-needed stuff". just flicked over to Bloomberg for a squizz, and they told me that: " Industrial production increased 10.7 percent in June from a year earlier, the largest gain in nine months excluding seasonal distortions. Retail sales climbed 15 percent." and: "Urban fixed-asset investment surged 35.3 percent in June from a year earlier, the statistics bureau said. The 33.6 percent gain for the first half was the biggest in five years." Growth is now tipped to hit 10% in the 4th quarter. The figures speak for themselves, YC.
Full article:http://www.bloomberg.com/apps/news?pid=20601087&sid=a4Ko6hXpm7dM
So all those rosy figures are due to domestic investment. And they will grow.......for a while....as there is just so much they can sell themselves. And no doubt they are seeking export markets in the Middle East & Eastern Bloc to boost exports. I would say we have several years' grace, but if the West has not recovered by then to take their previous export level, their "domestic-based" economy will implode.
