i think in the next 20-50 years it will eventually move in that direction, since its rising economy, its society ful of youth with globalized knowledge and the internet helps then see ouside red tape...and with all foreign investment from US etc
All nations are capitalistic or moving in that direction today, even Cuba is warming to relations with the USA, Russia and China are already there! China is financing the US Treasury already, that sounds like capitalism to me!
Surely not from you! You are in the investment business and are not aware of China's massive purchases of US Treasury bonds?
Has china started arming and then destroying dictators yet? That will be its graduation point wouldnt it?
You have got to be kidding me. China has been propping North Korea up for more than 50 years. They have also squashed Tibet, murdered her own people in Tineman Square, persecuted thousands upon thousands of Christians, Buddhists, etc, forced abortions on her women, repeatedly has threatened to invade Taiwan, and China abuses prisoners. Amensty International has been tracking China's progress with many accounts of the country failing to make real changes: http://web.amnesty.org/report2005/chn-summary-eng
You forget to mention that we let them steal our high technology then sell products made with it back to us. Unfortunately all of our Hi-Tech companies, including Microsoft are investing billions in China and providing technology also. China requires technology secrets to be revealed to joint venture partners controlled by the government for market entry! Until Americans realize that we must return manufacturing to the USA and our laws require this, we are on a downward slide as a world power, all while our own business people sell us down the tubes and politicians sit on their asses and take bribes.
I doubt this will happen. No one has the political fortitude to reverse the course. Good grief, they readily complain when factory workers make more than $7 per hour in the U.S. while I heard that some Chinese laborers are making as little as 7 cents per hour.
Remember what Henry Ford said, if you don't pay workers enough they can't buy your products, well this is what union busting Republicans have done to America, starting with Reagan firing the air traffic controllers! New laws must be enacted to reverse this trend of manufacturing flight offshore or America is doomed, China already is our banker and we are in deep debt to them!
Well, I figure that China well modernize and become fully capitalist within my lifetime. Communication has advanced to the point where China can't censor the media fully. They are eventually going to have to completely switch to a democratic system due to the influx of ideas and information that is being spread to the people. That said, I'm not sure what the U.S. economy can do. In truth, I figure that manufacturing will be handled by A.I. and robots in less than 20 years, so I'm not sure what can be done to truly reverse the trend.
What can be done is something called duty (Commerce. a specific or ad valorem tax imposed by law on the import or export of goods) and tariffs (A list or system of duties imposed by a government on imported or exported goods), in addition to income tax incentives for companies to manufacture in the USA, new laws must be enacted and corporations must pay a penalty for exporting jobs. If Honda and Toyota can manufacture in the USA so should American corporations be able to do it profitably.
When China's GDP per capita rises above 15k, you'll start to see a much higher level of 'individual rights', which tends to be a system of 'real' capitalism. It will take much longer for it to resemble America, though. I'm sure there will always be a higher level of authority among their ranks....well, till the people are wealthy enough to organize huge political movements. Hopefully it's all smooth. America was once perceived as the 'cheap labor', then it was japan...now it's China. I don't have an overt fear. They must free their currency over time, and work on their over eager banking system.
Actually, tariffs aren't that effective. I know that the last steel tariff wasn't that hard to get around. My father works at a cap manufacturing plant (lids and caps for jars). During the tariffs, he needed to buy steel. The US manufactors aren't that good (Bad quality and late shipments), so he was looking to a couple of foreign places. A plant in Brazil produces high quality steel at the standard foreign prices, and U.S policy made all exports from Brazil immune to tariffs. So, there are usually ways to work around it. Second, In the past tariffs have only managed to anger the world community and cause tons of tariffs and duties on our own exports and imports. Third, Tax incentives probably won't be enough. The cost of labor in the US is very high and it just keeps getting higher. Most companies also have plenty of other tax shelters to use. Fourth, Well, it would need to be one large penalty to make exporting jobs not profitable. The truth being that in a free market economy, we can't do that. Fifth, Yes, American corporations should be able to manufacture profitably. They just don't. The car companies are a perfect example. They continue to try and sell high-priced, low-quality, inefficient cars that have to be constantly taken in for recalls. Some foreign companies simply win the market by doing a better job cheaply. Just my 2 cents.
It's terrible policy to wage tariff wars. Hopefully we don't go down that route. Regulation in America probably has a bigger role. Some of them need to be streamlined. Management definitely has a role. Just because we've been the big boys for sometime, it seems these guys forget they can be standing on a rug (just waiting to be pulled from under them). I think it's mostly regulations, and banking processes. China's domestic banks need to slow down or find another rug-burn like before. Obviously they'll continue to have rising productivity, but lack of prudence in investment leads to very unstable banking systems....the most dangerous thing in the world, imo. It's imperative we work along with China to bring a level of economic sanity in their banking process. It's something that necessary in every new economic power. We're all connected when one falls, so it's in our interest.