Shane Smith states that China will one day take over the US as the largest economy is 20 years or less, since they have been experiencing double digit economic growth in the past 3 decades. The question is if the economy is as solid as it seems.
The problem at hand is that China is creating these massive towns that are vacant, and real-estate has been 13% of their GDP. China uses numbers from property construction to calculate GDP, not values from property sold. This is an issue because it may indicate that the economy is not as solid as it appears, and may lead to a burst in the real-estate bubble.
Smith says the economic slogan "supply and demand" is being replaced by "build now, sell later," which is seen as a dangerous form of voodoo economics.
It is currently having a ripple effect inside China's economy. When the Chinese economy takes a turn for the worst, it will also be felt in the US and around the world. These stories have not come much to light, for the government will try to suppress your word and come after you.
http://www.vice.com/vice-on-hbo/vice-on-hbo-episode-6
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