Originally Posted by
leonell
With the current pace of industrialization China is experiencing, it will not take long for it to have a solid 1 Billion people domestic economy. These people are the one's buying and spending the salaries and thus altogether the stimulate the domestic economy.
Ok, I'll be specific, Britain is the oldest and the closest among all but mainly in Asia or SEA, it will be us that's the oldest and the closest to the U.S. We did not become a proxy nation to Asia for nothing.
it is not as easy as it looks. there is the
widening gap of incomes among the population (characteristic of capitalist development). and the
inequitable development between its coastal and interior regions. Chinese
wages are also artificially low (to make it more conducive for manufacturing). couple this with
high inflation and you have a volatile situation in your hands. since they are heavily dependent on foreign markets, any hiccup in the world economic scene makes them particularly vulnerable. all of these are prime ingredients on why China might not be able to produce significant domestic demand any time soon.
********r is right, Japan is the US' main ally. ours is just for show.