China New Export New Orders Decline At Fastest Pace in 42 Months

China could grow so spectaculary because it could invite foreign investors to make things for existing markets, using existing technologies. Japan followed the same approach for many years. It works as long as the rest of the world grows and is very large relative to the new export oriented economy and enjoys relatively free trade. But once the new export economy reaches a certain size relative to the rest of the world it must manufacture increasingly for itself and this requires freedom for entrepreneurs and consumers. This is risky. China will sort it out so we better start getting our own house in order. When China adjusts to a more balanced economy we need to be in a position to increase our exports to them.