China sold more cars last year than the US. It just surpassed Japan as the second largest economy. After dozens of trips out to China starting nearly 15 years ago, I’m still amazed by China’s growth and very rapid change. 15 years ago vast streams of bicycles on the roads ….now huge traffic jams on jiangoumin avenue (wide 15 or so lane road in front of Tiannamen square, same road where man stood in front of tank). More Audis, BMWs, Shanghai GM Buicks you can shake a stick at. Btw, GM sold more cars in China last year than they did in the States. China still has 600 million dirt poor peasants, all want to be like western consumers.
These are some reasons I’m betting on longer term inflation, especially in energy oil and other commodities. It will be interesting ride for China, they are currently going thru ttheir own property bubble. Shanghai now more expensive than NYC. Wonder what impact of property crash will be, if it occurs.
