CHINA: Balance of Terror.

The trade war with the Americans has prompted China to accelerate its plan to eliminate dependence on American technology. This includes abandoning the U.S. dominated SWIFT bank transfer system, computer operating systems and the Internet. China is also hustling to replace all the American computer hardware (mainly key components) and software. This won’t happen quickly and may cost the economy more than expected.

More:

Ignoring the official optimism of the Chinese government, a growing number of Chinese government and business leaders believe China is headed for the same fate as Japan in the 1990s, when a real estate bubble triggered a violent and continuing halt in economic growth. The Japanese had allowed a huge real estate bubble to develop and, when economic growth stalled for a bit, a lot of the real estate loans became bad debt and that created an economic crisis Japan is still dealing with. Japanese were angry and being a democracy they elected new politicians. China is not a democracy and a banking crisis like the Japanese went through in the 1990s will create a lot of angry Chinese who cannot, as the saying goes, “vote the rascals out (of office)”.

Inquiring minds will read the entire post.