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Thanks, good post.

I am concerned with what is happening with China, I am concerned with “American” companies sending so much of what was once our manufacturing might, to China, and I am concerned with North Korea right now.

What we have done by shipping China so much of our industrial base, is we have emboldened China. We have made it stronger, but ignored it seems, what that means. China is not becoming more like America.

China is becoming more independent, and more willing to go head to head, with us.

It is NOT good for America, to be so dependent upon China. It is not good for America, to buy so much from China, but not to insist China also buy from America.

That is VERY irresponsible, and nobody for the last three of four administrations, has been looking out for American production.

Nobody.

Trump was very clear, he wanted to change that. Now we have North Korea nuclear, developing better missile technology by the day, and China is standing behind Korea.

China. The country which makes most of what we buy, in America. A country WE have made quite wealthy.

A country, incidentally, which non-Chinese cannot immigrate to.

This is a big problem, for the future. China does not seem to want to be responsible, and buy American goods. They do not seem to want to allow immigration. They just want to make everything in China, and sell it to us, and to every other country in the entire globe.

America needs to make things. In America.

I think the process of correcting this mess, might get a bit messy.

Might be I am over-reacting.

But I see a huge, amount of potential problems with our global trade situation right now.

Huge.

I’ll make four observations over China:

1. About three years ago, I watched a business interview. American entrepreneur who’d gone to using China for production in his products back around 2000. Around 2013, he found that the groups he’d been using for a decade were now inflating their prices....expecting a higher rate of return...and this terrific profit scheme that he’d developed was now in trouble. He was going move production out of the major urban area of eastern China to some central region. More rural....a chance to stay at the pricing levels he wanted. I got the impression that he had maybe five to eight years before they were going to price him out. This China-on-fire economic system has probably a decade left before people reach a stage that the cheap manufacturing angle wont work.

2. There is a huge amount of income going into China....tons of money. So, hiding money is now a full-time occupation for Chinese business operations. If you glean the papers daily....hundreds of Chinese are quietly walking away from China each month with millions and attempting to resettle elsewhere. I see it in the US...I see it where I live in Germany. A small but growing population of Chinese now reside in Germany. This group fears the government getting into their business, or their newly acquired wealth.

3. Inability to handle the wealth. I sat and observed a story last week on a new subway station that was finished off. Big huge exit point....in the middle of a cow field. Nothing there...not even a paved road. Probably four miles outside of any urbanized area. China news people said it was built because of a long-term requirement written up by one city government, and large funding pot held by a second government organization. The truth is...they didn’t need this built for another decade. Use? Probably every hour....four subway cars will pull in and stop....with no one getting on or off, for at least three or four years. Maybe in a decade, it’ll prove it’s worth.

4. I travel a good bit around Europe, and in the past three years....noted more and more Chinese. On an average day in Heidelberg...around the tourist zone...there’s probably 300 Chinese people arriving by bus. They walk around...seem amazed by the landscape, the structures, the food, and the drink. They leave and return to China with a vision of introducing those things there. As much as people think that China is always going to be China....I would suggest that these travels to places like Europe, the US, and such....are going to waterdown Chinese society and introduce new issues in the decades to come.