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Will U.S. Growth Beat China's in 2009?

I can make one criticism of your criticism of China's reflation model. China is a large and diverse country; there's tons of highly-populated places out in the boondocks with backwards infrastructure. Apparently the cant was going around Chinese business circles that relocating your factories towards lower-cost regions didn't make sense, simply because Chinese transportation infrastructure was not up to snuff. This was in 2007. If I recall correctly, the Chinese government is aiming to improve infrastructure in lower-cost regions, so that factories can be moved to areas with lower labor costs.