14556View
52m 42sLenght
51Rating

China has a lot of things going for it(high population, incredible manufacturing capabilities, fairly cheap labor, and lots of natural resources), but even with those things China will have a hard time succeeding. For one the government interferes WAY too much with the economy. As someone who has a lot of friends working in finance, I know the last place businesses are looking to invest now is China. They are scared with all of the Chinese currency manipulation, stock market freezes, and other interference from the government which falsifies information and misleads them. China is not ready to go autonomous from foreign investors, if it wasnt for foreign countries investing in the country for so long China would probably still be a third world country that has a poor economy, but because of all the foreign trade and business going on China has really developed economically. Now that foreign investment is pulling out and going to other places(such as Vietnam and India), China will have a shortage of capital until the government stops manipulating the economy. With this shortage of capital business in China will suffer and when business suffers, the economy suffers. If China has a recession, it is likely that they will quickly lose status on the world stage. The other issue related to economy is that China just doesnt really have that much innovation going on. For a country almost 5 times the size of the US you would think they would have tons of great ideas and companies emerging. You would think that China would have companies like Apple, Google, Microsoft, etc, and to some extent China does have these companies, but the companies just aren't innovative at all. I mean in the case of Baidu, they pretty much just copied a couple western websites(namely google) and used already existing technology to do it. Same thing with Xiaomi, China isn't actively developing the next big thing(such as the iPhone), they in the past have just waited for the Americans to develop an idea and then they just reproduce it for China. Without this innovation China just doesnt have the same influence because they dont really have all this great technology to leverage economically. On the political end of the spectrum China is indeed very powerful, as a country with 1/5th of the world’s population should be, but they have few allies which will certainly hurt them. With their shenanigans in the South China sea they have pretty much alienated all of their neighboring countries. Japan, Korea, Taiwan, Vietnam, the Philippines, Malaysia, India, and Indonesia have problems with China and so being influential politically will be extremely difficult for the Chinese because they have made so many enemies. On the demographic end China is experiencing population aging problems right now. Not as severe as Japan is experiencing but if you look at the linked population graph you will see something that looks pretty sickly. This is what a good population chart looks like. Narrow at the top, and gets larger as it nears the bottom. This was China 63 years ago. Now look at the chart for 2010: What you see is something that, again, is rather sick looking. The bottom is narrower than the majority of the chart, this means that China’s days of growth are numbered. As we have already seen with Japan, it is extremely difficult to post positive economic growth statistics with a population that is old. Look at this chart, the fattest parts are people between the ages of 25(this chart is from 5 years ago, so thats how old they are now) and 55. In 20 years this chart will probably be even more sickly with that big middle bulge moving up 20 years and being supported by a very thin base. Japan and China are very similar places so comparison between the two is often done to predict the future of China. During the mid 20th century Japan received A TON of foreign investment and business exploded, much like what happened in China, Japanese products dominated global trade and many were of the impression that Japan could surpass the US in terms of economy, but they didnt. For demographic comparison here is what happened to Japan in 1975: Thanks for watching * Subscribe for more Videos * Like & Share * go to our website http://vmpublishing.com/ * Share your ideas and comment