A Chinese official once told Blackstone’s Stephen Schwarzman that he should “create a change of government in the U.S. because your system doesn’t work very well any more.” [via Forbes]
“The Chinese think we have a society that is not working,” Schwarzman said at the FT Future of America conference.
“Why isn’t the US looking for a more effective solution or a new structure? They are still in the waiting and seeing – they are basically rooting for us to clean up our act – for the US to fix the problems and be back and functioning – because now it leaves the world in an unprotected place,” he said.
The thing is China needs Europe and the U.S. to do well so its economy can benefit.
What’s more is China has its own issues too.
When Schwarzman visits China he always hears that the Chinese will create 10 million jobs a year.
“Social stability in China is a key issue and if they don’t produce a promised 10 million jobs, there will be concern about future,” Schwarzman said at the FT conference.
He said their current ex-port model is not sustainable.
“The five-year plan calls for development of interior and a shift to a consumer-based economy, way of saying that the current export-model cannot stay forever and will create major imbalances.”
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