China Is No Longer A Locomotive

Dr. Michael LaitnanOpinion (Michael Khazin, an economist, from “In November 2011, the industrial production in China declined for the first time in three years. This is explained by the debt crisis in Europe, which has reduced demand for Chinese goods, as well as by reduction in domestic consumption.

“China now cannot quickly replace the falling external demand for the simple reason that it no longer produces any truly cheap goods. Energy costs have increased, labor costs and production costs have increased… In general, only wealthy Chinese can afford Chinese products.

“Excess production and infrastructure built for growth will put much pressure on the economy, requiring permanent and ineffective expenditures for their maintenance. Serious social problems will also burden the economy and the state. Like everyone else, China too faces very serious problems.”

My Comment: The crisis will spare nobody, and all countries and nations of the world will be plunged into it in order to feel the need to change the whole trend of human development from the material goals to the spiritual ones.

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