Theory - Electronics manufacturing and Collapse of China

Discussion in 'Off-Topic' started by maxpower097, Jan 9, 2010.

  1. maxpower097

    Thread Starter Well-Known Member

    Feb 20, 2009
    I'm reading all over the place that the big dawgs in the economy are now predicting China's economic collapse as the next big thing. Since so many electronics and goods are manufactured there do you think this would open the market for more manufacturing in the US if this happens? Or what do you think the effects would be in the US or Europe if China collapses?
  2. VoodooMojo

    Active Member

    Nov 28, 2009
    if China's economy begins to make a downturn they will be forced to make the US and Europe make good on debt owed.
    I would have more concern for the US than China.
    Last edited: Jan 9, 2010
  3. Duane P Wetick

    Senior Member

    Apr 23, 2009
    They will probably follow the US and shift their manufacturing operations to Vietnam, Thailand, India and Sri-Lanka and other places where skilled labor is plentiful and cheap. Shipping things in bulk globally to the US from poor countries is the model for everyone on earth and makes the best economic sense no matter what the dollar is worth.

    Cheers, DPW [ Always remember that you are not going to live forever.]
  4. Wendy


    Mar 24, 2008
    I suspect if China goes the rest of the world goes with her. They have a new middle class, but it is relatively small and fragile. They don't really need to outsource labor like the USA, there are still plenty of people in China making less than $3 / day.

    Problem with China is they are so big that they are like the 500 pound gorilla. They have also been putting a lot of their spare cash in our economies, so that would not be good news for us in any case.
  5. GetDeviceInfo

    AAC Fanatic!

    Jun 7, 2009
    China's financial sector, or it's 'Americanized' economy may well go through upheavels. However, it's continental economy is not that much removed from yesteryear, where it has great depth. Add to that it's huge global investment in prime resources, and I think you'll find a very resiliant structure.
  6. Papabravo


    Feb 24, 2006
    Actually the basis of the analysis is that China has made heavy capital investments in the means of production to meet demands in the western ecomomies that have collapsed. As demand sinks and inventories rise of products nobody wants to buy there will be tremendous waste. In electronics where stuff has a half-life of 18 months the amount of stuff that will be thrown away will be massive.
  7. jpanhalt


    Jan 18, 2008
    China's 2009 exports were 13.9% below its 2008 exports. The good news was that it had a good December, which was 17.7% above December 2008. It is now the world's greatest exporter at $1.2 trillion vs. Germany at $1.17 trillion (Source: Associated Press).

  8. Papabravo


    Feb 24, 2006
    The real question is sustainability, and weather the Chinese consumer will have the wherewithal to replace the western consumer whose 401K went pfffft, as his house continues to be even more underwater than before.