...The Chinese government faces numerous economic challenges, including:
(a) reducing its high domestic savings rate and correspondingly low domestic demand;
(b) sustaining adequate job growth for tens of millions of migrants and new entrants to the work force;
(c) reducing corruption and other economic crimes; and
(d) containing environmental damage and social strife related to the economy's rapid transformation....
China has a TWO CLASS system (Starting to sound familiar to the NEW DEMOGRAPHICS of the USA.) Their Middle Class is non-existent because the companies producing goods DEMAND dirt poor wages in order to support their corporate profits and greed. If the Chinese Worker or the Indian Worker was paid a Middle Class wage no different than the USA, their goods would have to compete with USA and European goods because there would be no difference in price.
China is in a self-defeating loop because they have no labor unions, no Middle Class, no way of digging itself out of its communist indebtedness to supporting the Poor and they export their dynamics because Capitalists have exported their BONUSES to other labor markets.
China is never going to stop having problems and the global market is never going to be able to compete because Wall Street is playing a global game and they don't care who lives and dies to provide their profits and bonuses.
