I have lived in Shenzhen for many years, traveled to tons of cities in China, and recently am back to silicon valley. From what I can tell on the ground, China is going to be in decline for the next 10-20 years. (I have a good hunch most people that comment favorabily on China here, have never been)
- Myth: China is developed. Truth: Start in Shanghai Huangpu (very rich neighborhood, in a very rich city). Take a subway a few stops in any direction. When you come out, you are surrounded by dilapidated communist blocks and electric bikees. Take another ride a few more stops, you are surrounded in villages that are right out of middle ages (shoddy huts with shared toilets). This is the same for any of the rich city in China. 90% of people in China live in middle ages. 9.99999% of people live in 1950s. 0.00001% of people live very richly.
- Myth: Chinese citizens saves and are rich. Truth: most rich people have left China already. The remaining middle class ($1000/month, many of my Chinese friends) are able to buy into the massive inflated housing with savings from parents. The savings, borrowed money from relatives, credit card debts are now stuck in real estate. My friends all have (fake) gucci, LV, brand name products. They take out loans to afford conspicuous lifestyle. These things are all for show. Some of them are paying all of their salaries into the mortgage payment every month!
- Myth: Chinese economy is doing fine. Truth: Many of my banker friends (expats and locals) know that it's all propped up by debts that will collapse any day now. There's a massive inflation happening everywhere, from food to housing to foreign products. It's harder to harder to get money out of China (I'm helping some with bitcoins). Most of them aren't optimistic.
- Myth: China is leading in green-tech, research, innovation, etc. Truth: tons of copy, chabuduo (good enough), cheating in classes and in business, pollution in Shanghai and Shenzhen is still cancer causing, most smart people want to go abroad.
- Myth: China is developed. Truth: Start in Shanghai Huangpu (very rich neighborhood, in a very rich city). Take a subway a few stops in any direction. When you come out, you are surrounded by dilapidated communist blocks and electric bikees. Take another ride a few more stops, you are surrounded in villages that are right out of middle ages (shoddy huts with shared toilets). This is the same for any of the rich city in China. 90% of people in China live in middle ages. 9.99999% of people live in 1950s. 0.00001% of people live very richly.
- Myth: Chinese citizens saves and are rich. Truth: most rich people have left China already. The remaining middle class ($1000/month, many of my Chinese friends) are able to buy into the massive inflated housing with savings from parents. The savings, borrowed money from relatives, credit card debts are now stuck in real estate. My friends all have (fake) gucci, LV, brand name products. They take out loans to afford conspicuous lifestyle. These things are all for show. Some of them are paying all of their salaries into the mortgage payment every month!
- Myth: Chinese economy is doing fine. Truth: Many of my banker friends (expats and locals) know that it's all propped up by debts that will collapse any day now. There's a massive inflation happening everywhere, from food to housing to foreign products. It's harder to harder to get money out of China (I'm helping some with bitcoins). Most of them aren't optimistic.
- Myth: China is leading in green-tech, research, innovation, etc. Truth: tons of copy, chabuduo (good enough), cheating in classes and in business, pollution in Shanghai and Shenzhen is still cancer causing, most smart people want to go abroad.