….Put simply, China needs to ensure that its factory assembly lines are always provided with raw materials so that there will be no — or very limited — layoffs, ever…even if this means that excess inventory keeps piling up. China’s focus in this case is not on domination of any industry, but rather, on ensuring that the upside from its economic miracle continues to be spread around sufficiently to keep potential discontent from its citizens at a minimum.
Examined in this light, China has more Egypt-style anxieties than Saudi Arabia-like aspirations, and American investors and consumers alike have fairly limited cause for worry when it comes to future prices or availability of technology products…..
By Jeffrey Kleintop
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