For better or worse, the Chinese are diversifying: Their monetary holdings, their customers, and their labor markets. One day, and it might take ten or twenty years, they will not be so dependent on our economy. It may seem like a ways off, but I suspect we will begin to feel the effects much sooner. They are working on this very hard, and they have much more patience than does the US.
They are becoming rabid capitalists and have enormous growth potential just from their own citizens. Their economy is small, but is growing far faster than the US. If you are a growth investor it is very attractive, thought there is risk of the economy overheating or the gov’t doing something stupid-but hey, that happens here too!
I wouldn’t short them with my lunch money.
