China the new services economy?
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Looking at the latest numbers reported by Reuters. I find it interesting as manufacturing cools in China we see large growth in the services sector. Many may see this as a threat to western counterparts. But, the reality is that China can run manufacturing surpluses for so long before it must find a way to spend those surpluses. No-one knows if this shift is happening now but the Reuters article does hint to that.
How does that affect us? It’s hard to tell but we might start to see higher prices from China for goods. Goods will cost more as more of China’s services economy expands. This can be an opportunity for other countries. Countries like the USA.
