Chillin' out till it needs to be funded
As western journalists discover everyday, it is now okay to publish to their readers the weight of the empty malls and cities on the Chinese Economy even as the new leadership’s work biographies appear in the mdeia. Also interesting is the use of Chinese state media even as it goes public by Wen Jiabao and perhaps others to publish the outgoing generation’s continuing stamp of approval and oversight of reforms that the new 4th generation of leaders will bring to the table. What is dull to the hearts that while only Apple, McDonalds, Starbucks, Caterpillar and GM make Western successes in the mainland, the problems of island tourism in Macau and Hongkong and Cheap Chinese goods are still the only imports its Yuan trading partners get in exchange for a relationship with China.
This article however focusses on the facts that China has right, it has moved to prioritise consumption and been able to showcase the advantages of absolute control with good traction in a real exstate and bank finance economy ruled by the law of the monkey and the government often the schmoo in lending and /or local government growth practices where it ended up with unused real estate that has brought the economy to the precipice.Statistics are sometimes questionable and healthcare is sparse, the interiors having just got attention even as urban migration has succceeded for China a s a strategy, new towns will likely soon appear in Central Asia ont he rejuvenated Silk route, Guangdong and even North near the Mongolian border for transport of goods to Russia.
Thus more than a shift from investment to consumption, redirecting precious investment resources would be key and would be easily led by the economic case for them as is already happening in manufacturing.
Also Chinese responses to WTO challenges are much more sophisticated, its own counter investigation of US import/export practices in to discussions on pricing favors for Californian solar panel / silicon cell suppliers ( PVC)
Its consumers also much more sophisticated in the use of spurious substitute for luxury goods, events which track goo consumption statistics despite stubborn inflation though still int hat rich substrate of bureauicrats and shadow lenders who made money on the growth or have the power to get a new luxury car in their designated parking on busy Shanghai and Beijing streets.