Quote:
Originally Posted by siokan
If it is only conventional forces and an army, it is likely to be able to antagonize it. The ability difference of the air force & Navy is great.
There is a possibility of catching up in about 50 years if the Military budget of China is made "(Military budget + 公安 budget) *2".
The troubled-loan cleanup concerning the real estate is necessary ahead of that.
Government report: 10.7 trillion yuan at 2010 year-end
Bank report(中国人民銀行): 14 trillion yuan
Houses that remain unsold are 110,000 households. @increasing
Déjà Vu........
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These are short term problems that does not change the macro picture. South Korea and Taiwan made many mistakes during their rise, today both have achieved developed status, I believe China will do the same by 2050 at the latest, if not much sooner. The house prices can be reduced and easier loan terms given by the govt. to sell them very quickly, if and when they want to. There is plenty of people that need the houses, it is just that they do not have the buying power, upfront cash down payment and income level to pay them off timely at this point. Unlike Japan where there was not enough buyers, and Thailand where there was capitalistic economy, China still have plenty of buyers who want the houses and a central planning economy that can make quick decisions without consideration for market forces.