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<p>[QUOTE="fatima, post: 1491626, member: 22143"]China has two fundamental disadvantages. First, its production costs advantages are only possible with cheap fossil fuels. China has comparatively few natural resources so it's forced to import huge amounts of raw material and then of course its products also have to be shipped out. (Australia's economy is literally based on digging itself up and sending it to China) If the cost of fuel doubles for example, it immediately eliminates a portion of the Chinese production economy. There are also other significant environmental issues related to this which I won't get into. </p><p><br /></p><p>China's second fundamental problem is that it has an unsustainable population. It manages it by keeping 2/3rds living in dire circumstances through government controls that westerners consider unacceptable (though hypocritically the have no issue with materialism supported by this system). In my opinion, the prosperity brought by the manufacturing economy is going to wrench this society into unpredictable directions and thus their role of slave labor producer for the world might very well end.</p><p><br /></p><p>I also think that national security concerns in places such as the USA will end up trumping pure economics from determining where this might end up.[/QUOTE]</p><p><br /></p>
[QUOTE="fatima, post: 1491626, member: 22143"]China has two fundamental disadvantages. First, its production costs advantages are only possible with cheap fossil fuels. China has comparatively few natural resources so it's forced to import huge amounts of raw material and then of course its products also have to be shipped out. (Australia's economy is literally based on digging itself up and sending it to China) If the cost of fuel doubles for example, it immediately eliminates a portion of the Chinese production economy. There are also other significant environmental issues related to this which I won't get into. China's second fundamental problem is that it has an unsustainable population. It manages it by keeping 2/3rds living in dire circumstances through government controls that westerners consider unacceptable (though hypocritically the have no issue with materialism supported by this system). In my opinion, the prosperity brought by the manufacturing economy is going to wrench this society into unpredictable directions and thus their role of slave labor producer for the world might very well end. I also think that national security concerns in places such as the USA will end up trumping pure economics from determining where this might end up.[/QUOTE]
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