Wednesday, April 29, 2015

China growth could be similar to US economic growth

In 1980, China consumed 2% of the world's industrial commodities. By 2000, it was 12%, and now it is 47%.

Now the growth in China is obviously slowing down. But if you look at the U.S., there were 19 recessions during the 19th century, then the Civil War, World War I, the Great Depression, World War II, the Korean War, the Vietnam War, and the country continued to grow.

So, I wouldn't be too worried about the problems in China for the near term. I think it's solvable. Hopefully, it is painful because the society needs some pain from time to time, then the economy takes off again.