There is a huge growth going on in China based on speculation. Whole cities are being built and are standing empty. When this bubble crashes, it will affect the entire worlds economy.
From Bloomberg:
China Builds Its Own Manhattan -- Except It's a Ghost Town
China’s project to build a replica Manhattan is taking shape against a backdrop of vacant office towers and unfinished hotels, underscoring the risks to a slowing economy from the nation’s unprecedented investment boom.
The skyscraper-filled skyline of the Conch Bay district in the northern port city of Tianjin has none of a metropolis’s bustle up close, with dirt-covered glass doors and construction on some edifices halted. The area’s failure to attract tenants since the first building was finished in 2010 bodes ill across the Hai River for the separate Yujiapu development, which is modeled on New York’s Manhattan and remains in progress.
When this bubble crashes, it will affect the entire worlds economy. Cheap manufacturing will be a thing of the past.
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