Peacedog wrote:Except the part that is missing here is that the Hong Kong dollar is convertible and the RMB is not (and will most likely never be). While HK has shrunk form being 20% of the Chinese economy to 3% over the last 30 years, it is still the only gateway for moving RMB into hard currency.
And the US just pulled HK's financial status. Once the HK dollar is no longer convertible, this is going to hit the Chinese economy very hard. Now that isn't on the table yet, but given how many people the PRC just murdered off in the West with CV-19 it is coming.
https://www.aljazeera.com/news/2020/05/ ... 46550.html
Also ignore what doomsayers are spouting about the US economy and the West writ large. It's utter bullshit.
The fact is that without significant political, and cultural reform, mainland China will remain, and most likely always be, a free rider on Western technological and financial development. My personal suspicion is that the level of development you currently see in the PRC is essentially the limit of what can currently be done given their cultural operating system.
Hong Kong provided a critical bridge to the PRC with the West in this regard, but Xi being a socialist would rather have power, and control, over even the tiniest of his populations than development that could possibly change the power dynamic in his country.
One of the reasons why the PRC is going all in on AI is that as the society is currently structured they cannot operate next generation technology. The people running the country are hoping the machines can do this for them. And they are wrong on this.
Once the West stops using mainland China for its low and mid-level manufacturing needs, and the situation in HK and CV-19 is greatly accelerating this, they will no longer have access to hard currency. It will be devastating for the PRC.
Are you are right about much ?
Initially when the Covid-19 came around, you self assured pointed out how it would rage as a wildfire throughout Southeast Asia(because you got pneumonia while on a hippie retreat there) ....you where wrong.
Now your business having a hard time, then you are projecting your “law of attraction rays” toward China...”if my American Chinese herbal business going down you’re going down too”.......China is trembling
Spiritual elevated...right !