9Lun
Most of China's rise was due to the incredibly fast-growing population. When there are more and more people, companies logically generate more and more sales on average because the market is growing. However, this is currently reversing and the population is expected to drop massively from now on. In addition, China is anything but liberal and the less liberal and the less free the market, the slower the growth. All the way to communism, where there is virtually no growth at all and everyone is slowly becoming impoverished... I still have a 10% allocation to China through my EM ETF, but you never know what the future will bring, but it doesn't look too good at the moment.
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@Seiky Let's hope for me and the Chinese that you're wrong 😘
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9Lun
@PowerWordChill There is some upside potential anyway as the shares are accordingly valued quite low. But if nothing changes in terms of the birth rate or, above all, the Chinese economic model, the situation will not change - the freer the market, the more growth, which has always been the case and will remain so.
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@Seiky China is now an export nation, so doesn't it also depend on foreign demand? Does he see a problem for Germany if domestic demand in China weakens?
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9Lun
@user510d558131e14d71 Of course, there are a number of points that are important. There are a number of things that could exacerbate the situation and others that could be great. But a liberal country can have national success in pretty much any situation, whether it's the USA, little Switzerland or Argentina. China is struggling with many things, but the basic problem is that there is no real free market. In Germany, the basic problem of all the problems that have been occurring more and more recently is that the market can no longer breathe. Everything is regulated to death, far too much is nationalized. Taxes on everything that can then compensate for the incompetence of more and more state institutions... It will end badly in the long term if something is not done soon.
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