Rising oil prices will clobber China economy
Bob Morris @ Jul 7th 2008 19:23 - Category: Unfiled Tags: China, globalization
China recently lifted their subsidies on fuel prices because it can no longer afford them and because it will force their businesses to become more fuel efficient. Globalization - and this includes out-sourcing manufacturing to China - is highly dependent on cheap oil. But those days are gone.
One immediate reversal is already happening. Furniture manufacturing is returning to the US.
The economy of China is now at risk.
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