As the economy downturn, many industry and factory closing down, people been fired, consumer spending power become less, property left unsold, car production and demand become less, investor afraid to do investment, bank saving interest rate become less…What else?
No country is safe now. Those industrialized countries have all officially declared they are in recession for e.g. USA, UK, Germany, Japan, Hong Kong, China…Thus, developing countries aren’t doing too great either.
Why I Say China Great Future?
Basically any countries that didn’t trade with US, Europe are not affected by the recession. If global situation doesn’t improve, we would see lot of problem will be arise like substantial banking loan issue, massive unemployment etc. This is the reason why China government is fast to react by pumping lot of money into the economy, as they knew the potential problem and severity of it.
China is not entirely export oriented. Its huge population alone is one big market itself.
Manpower is never an issue for them and they are not too relying to Western countries unlike India, Middle East and Japan
Still Big Gaps Between China Vs US
No doubt, China has huge population, which in turn is a huge potential market.
In economy term, we are more concern about the spending power of population, not the population.
There is no question that China could be the main economy in the future, but it still has some distance to catch up. One thing prevent China to reach US state economy is RMB (Renminbi). RMB is not freely trade outside until now, so as long as RMB cannot be freely traded, it can’t replace USD and eventually they still need USD.