Chinese Car Boom Continues
Passenger vehicle sales in China increases 48%, confirming how China is surpassing the United States as the world's largest car market. This also confirms that the Chinese economy continues to expand, even as most other economies contracts.
posted by stefankarlsson at 1:00 PM
2 Comments:
I follow a bit of Chinese news, and I have to say that while I substantially agree it is important to point out that, by many measures, the Chinese economy is far behind much of the west in terms of marginal productivity and standards of living. Likewise the measures of economic 'growth' (a concept I am a bit wary of in itself) should be supplemented by remembering that it is a much smaller 'pie' that is growing and, consequentially, a much smaller absolute gain per increment of growth.
On top of that, it's a horrible, protectionist State Capitalist government that is going to essentially grow more and more obstructive the more economic integration continues - that is to say, heavy regulation causes fewer problems in an already nationalized economy, but as more and more market aspects evolve they will eventually run up against these still monolithic regulatory agencies.
And most of these cars have been bought with credits (of Chinese state banks)?
Isn't it a new bubble?
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