We get criticized because China is not lying there in smoke and ruins. We've done just fine in China. I think what we're seeing is the model, the economic model everybody trumpeted three years ago, when I first started talking about it here, is under a lot of scrutiny...
We've cautioned people that China's net exports is a very small part of their economy, but gross exports is very large, it's almost 40% of the economy. sort of 40% exports, 37% imports for net three, but if the 40 drops to 35, you can have problems. The other interesting thing that's new in China is that we are beginning to see not the trade export balance decrease, which has been happening, but now capital is going out of China. so they're actually seeing a deficit in terms of investment. well, hot money is leaving... It's a huge, huge change and it's going to make the policy much harder to implement from Beijing,
We've cautioned people that China's net exports is a very small part of their economy, but gross exports is very large, it's almost 40% of the economy. sort of 40% exports, 37% imports for net three, but if the 40 drops to 35, you can have problems. The other interesting thing that's new in China is that we are beginning to see not the trade export balance decrease, which has been happening, but now capital is going out of China. so they're actually seeing a deficit in terms of investment. well, hot money is leaving... It's a huge, huge change and it's going to make the policy much harder to implement from Beijing,
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