Inner Mongolia: Chinaâ€™s turbulent secret. Worth reading as a counter to the generally benign progress visible in China’s Tier 1 cities. Not all roses, by any stretch.
End of cheap labour. It’s all very well hoping that we can move the world’s manufacturing to another country than China, but apart from India, there’s nowhere big enough. Possibly the most important question of our time is whether the growth in Chinese domestic consumption can cope with the wage (and other) inflation. If not, the world will be in a considerable mess. If it can, we might struggle through.
Roll on the next unexpected technological innovation.
Our analysis is broadly similar to this article – China hopes that economic success will bring greater integration and assuage political tensions, but in fact because of inequalities in distribution and corruption in major capital projects intended to alleviate unrest, economic growth tends to exacerbate tensions. Our outlook is that China will not change policy and tensions will continue to increase.