jonriv wrote:As China's economy matures it too will lose its cost advantage-but will be a large consumer market to sell to.
Sell them what? We don't make anything anymore. And making things is the real creation of wealth. A service economy is almost purely derivative. Cheaper Chinese products won't seem so cheap when the money runs out.
Economists like to live in their "comparative advantage" fantasy land. In the real world there is nationalism, currency manipulation (which effectively operates as a tariff), intellectual property theft, state-facilitated industrial espionage, differing standards of quality, safety, and human rights...and the list goes on. Their is no free trade Shangri-La. Never has been, and never will be.
Trump says that what China has done is like a magic act, and he's right. They got our manufacturing base and we owe them trillions in the bargain. And now they are militarizing at a breakneck pace. The politicians complicit in this should be hung.