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To: Elroy who wrote (66639)	11/30/2004 11:37:19 AM
From: RetiredNow	Read Replies (2) \| Respond to of 77397

I think you underestimate the Chinese economy. It is much more market oriented than you give it credit for. The Chinese are loosening controls at a very fast pace to comply with WTO requirements. However, they are doing it in such a way that they are locking in alot of benefits for Chinese companies. Look at what they are doing with their currency. They will eventually let it float, but not until after they've squeezed all they can out of the U.S. in terms of competition. They will continue to hammer us in our manufacturing segments for several more years. The demise of the Chinese economy is greatly exagerated. Of course, they will experience up and down cycles. In fact, it's highly probably that they will experience a hangover from the most recent boom. However, I simply don't believe there will be a massive collapse. Rather, it will be more like a downcycle, like what we're experiencing right now since the 90's. Also, if you think China won't ever rival the U.S. economically, you need to go visit China and get steeped in their culture. I think you are underestimating them dramatically. But that's par for the course. Most Americans underestimate Chinese competition and Chinese quality. I read recently in an article that in a survey a higher percentage of Chinese companies are concerned with quality than in the U.S. Quality parity will come. Give it time.