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Now that they have the Production capability, overseas markets can be less important in the future for them. It won't happen overnight, there will be pain in the transition for them, but this is a longer term trend.
During the last 20 years, as Wall Street and our so-called leaders extolled offshoring production (and got rich arbitraging the increasing difference between offshored production costs and U.S. consumer prices) , I always thought this would happen in the end. I never believed it was wise for any nation to shut down and offshore its factories.
As I've said to some of my incredulous friends over the years, China is not the 51st state. When push comes to shove, they will act in their own interests.
"BEIJING - China's ruling Communist Party on Sunday said it would seek to expand its massive internal market to counter the global economic slowdown that has reduced international demand for Chinese goods.
The party, led by President Hu Jintao, released a statement at the end of a four-day meeting of its Central Committee where it also approved a plan aimed at doubling rural incomes by 2020.
"We should step up efforts to boost domestic demand, particularly domestic consumption and keep the economy, the financial sector and the capital market stable," the party said in a statement released through the official Xinhua News Agency.
The party also recognized inherent "contradictions and problems" with China's economy and said all members should prepare for greater challenges as the global financial crisis unfolds."
http://news.yahoo.com/s/ap/20081012/...A.Ez.8mPCb.HQA
During the last 20 years, as Wall Street and our so-called leaders extolled offshoring production (and got rich arbitraging the increasing difference between offshored production costs and U.S. consumer prices) , I always thought this would happen in the end. I never believed it was wise for any nation to shut down and offshore its factories.
As I've said to some of my incredulous friends over the years, China is not the 51st state. When push comes to shove, they will act in their own interests.
"BEIJING - China's ruling Communist Party on Sunday said it would seek to expand its massive internal market to counter the global economic slowdown that has reduced international demand for Chinese goods.
The party, led by President Hu Jintao, released a statement at the end of a four-day meeting of its Central Committee where it also approved a plan aimed at doubling rural incomes by 2020.
"We should step up efforts to boost domestic demand, particularly domestic consumption and keep the economy, the financial sector and the capital market stable," the party said in a statement released through the official Xinhua News Agency.
The party also recognized inherent "contradictions and problems" with China's economy and said all members should prepare for greater challenges as the global financial crisis unfolds."
http://news.yahoo.com/s/ap/20081012/...A.Ez.8mPCb.HQA
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