Will China Prove Me Wrong?

The economic downturn we're experiencing domestically is having worldwide ramifications and the lessening of consumer demand here in the States is leading to factory closures and job lose in China. Other factors are also contributing to this phenomenon as reported by MSNBC

You would think that the Chinese leadership should be well-prepared for this eventuality. Hell, if they are Marxists they should know that there would eventually be a severe economic crisis affecting the capitalist world in which they have been participating. The signs have been there for all to see.

This should be a time when the superiority of the socialist system shines through. Over the last two decades China has amassed vast monetary reserves and has leveraged foreign investment to become the manufacturing capital of the world. Over the last decade it has spent vast sums on improving and expanding its infrastructure. While still a developing country and with daunting problems it has accumulated enough physical and human capital to be in a position to make the necessary adjustments to avoid the economic crisis that the Western capitalist countries are encountering.

The Chinese economy should immediately begin to shift its focus away from exports to vigorously expanding its domestic market. This should be facilitated by the fact that so much needs to be done. Living standards for hundreds of millions of people need to be raised from a low to a middle level of consumption. Health care facilities and personnel need to be expanded. Environmental recovery needs to be accelerated. The burgeoning middle classes have large reserves of pent up demand. The credit system which fueled US consumption for decades is just beginning to establish itself. If properly implemented and regulated this can serve as an economic engine to fuel China's economic expansion for decades to come.

I'm no economist but I think I know something about China. The world can see for itself the discipline, resourcefulness and pride of the Chinese nation during this Olympiad. Coupled with what should be the superiority of the socialist system which I feel underlies to this day the Chinese economy, China should be able to confound the naysayers and doomsayers who see an impending collapse.