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1% -- -- the new World Bank report which is actually been obtained by our colleagues at the Wall Street Journal shows that China's economy could collapse by the -- 2030 if it doesn't move to commercialize its state owned businesses.
Latest data shows 45%.
Of China's non agricultural GDP comes from state owned.
Businesses this is a recipe for disaster they say this report says World Bank report.
It's officially gonna be out on Monday but the question today is what does this leave the rest of us what's the significance of this.
Chris -- and -- Kirby have just written a book just out about how capitalists and -- adapt to this new world order.
Were emerging markets are becoming much bigger players the book is called standing on the sun and obstacles here because I guess -- -- that gives you the view right that -- standing on the -- looking down and exactly getting the big view of everything exactly state capitalism has been a big topic anyway and this and you know what happens in China to -- started with this on purpose.
To talk about your book matters for the rest of us for a number of years going forward how their economy develops is it any.
Portion of -- capitalism or not what's your view on all of us.
Yeah -- capitalism is a pretty broad term -- our minds anything that has markets.
And private property in some form of capitalism so in what they're doing in China China is on one end of the spectrum where state capital of the state component is stronger.
But it's also on one end of the spectrum in terms of the rate at which income is rising there and they're doing that in part by investing in big infrastructure project.
-- with the World Bank have looked at the Apollo program and said you better get your space program together and actually space program is now private so Chinese could be the same.
It's funny because there's a lot of everything in China there's a ton of poverty obviously but there's also a lot of wealth because there's just so many people there as their economy are -- develops.
How will all of this impact us because you guys talk -- -- your book about how capitalism adapts and it's not always what we think it this.
Right and that is.
Exactly our point is that -- the rise of the emerging economies is going to have this global impact on on capitalists everywhere.
And we make an analogy to.
The thing that happened in the last huge.
Revolution of an economy which is -- The industrial economy was right.
So the technologies.
Then I'm kind of new new -- apparatus of the industrial economy was all.
Devised in that the old world.
But it was in the kind of Green -- new world of the United States that you're really flourished into a new system and so the the analogy is inescapable.
That was great for us and the United States has flourished for for years is partly as a result of that and other developments in the technology revolution.
And everything else we have a lot of advantage is still as Americans but I think people look at a book like yours and you could both win on this and say.
When a little scared about the future because as these changes happen.
Is it going to hurt us here.
Now well here isn't what it used to be it's not gonna hurt the companies that are based in the US that understand that the emerging markets are not just.
Rapidly growing markets -- markets that are changing the rules.
And so that means you win by playing the new game -- Company like GE gets that totally -- like IBM chairman of that total and a lot of the jobs go over there but the jobs that are here more idea we talk about is all the time ideas and innovation and everything else but the tough question is.
What do you say to someone who's been hurt by it.
When they end in May be honest answer is there is no answer I don't now but there's people to be somebody in their fifties and we did stories I remember being out in near Detroit -- you know and other cities across the country.
The people don't have much hope because they've lost their jobs overseas in this new economy is hurting them what do you say to people like that is there an answer well the great.
Engine of job growth in the United States and I think it increasingly around the world is the entrepreneurial sector and I think as -- you know.
A lot of energy.
Starting new businesses in this new environment the new capitalism.
-- -- can thrive -- -- I think many many will -- And I say one more thing is -- this is not up to anyone this is happening its happening because of capitalism.
Yeah entrepreneurs are finding the new ways to add value so so -- about resisting it -- so this debate about your.
Both of your view it's asked me would be this debate we're having politically about all the jobs we're gonna bring the jobs back is a false debate.
Absolutely false that Steve Jobs was right the jobs are not coming under -- not coming back.
That's a that is a tough reality for a lot of people losing a lot of people caught in the middle -- real people real jobs you'll sentiments so.
Absolutely right and what from a policy perspective that means is.
Embrace a global capitalist world I don't figure out how to win and that don't start a trade war with China forget alright.
We could talk a lot more about this but the easy thing would be just read the book rights -- very thank you very much for coming on and good luck with everything Chris -- and -- -- -- at stake in -- --
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