Wednesday, April 4, 2012

China's outlook on demographics and trade partners

Demographics is one minor problem for China as there are still a lot of youths looking for jobs. However, China's one-child policy limits its population growth effectively though there are many bad stories that personally I know.

India has younger population but there are too many and consume everything India produces plus their small farm land/natural resources per capita is getting smaller.

The major problem is China's trading partners like US and EU have economical problems.

The world economies are connected at least the ones described as follows.

1. US trading with high tech and farm products.

2. EU and Japan with high tech.

3. China with low tech and some medium tech.

4. Countries with commodities like Brazil, Australia, Canada and many African countries.

When one is down, all are down. There is no exception. The global trades are good for consumers and hence better living standard. It is possible US can live without trade. However, most will not live in the same living standard even every one can have a job.

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