Richard Duncan, chief economist at Blackhorse Asset Management argues that due to slow wage growth and consumption capability, China's era of rapid growth will soon end. The US Fed inspired credit bubble allowed the west to buy China's goods and allowed China to amass huge capital reserves.
The average factory worker gets paid less than $10 USD a day (which is 80% of the working population). There is NO middle class wealth. Chinese workers can not afford to buy the items they make in the factory. China's inflation is 5% pa, you can imagine what this level of inflation does to the average factory worker food bill. The Chinese government will raise interest rates to kill inflation, China has fought wars over less. China growth will be slowed, you can bet on that!
China has no kung fu!
