China’s market is directly tied to the markets of her two largest exportees: the U.S. and Japan. At the same time, China has a huge domestic consumer market which is rapidly growing in terms of wealth and income. The decline of western civilization will serve as a catalyst for a shifted focus to domestic markets, a switch to a gold-backed RMB, and a decoupling from the dollar and yen. I wouldn’t want to hold Chinese securities at the moment but I’m keeping my eyes on them for future long-term growth.
