This means the export-led model of the last 30 years is changing. Growth in the next 30 years will probably be IP and brand-driven.
The export model is no longer viable: labor and fuel costs are prohibitive and the land is polluted. Labor cost increased some 30% to 100% in 2010 on top of currency exchange increase. Harvesting and canning mandarin orange in Hunan, trucking the cans to Shanghai, crossing the Pacific Ocean to Long Beach and then on to a freight train to Walmart depots across the country no longer make sense.
China has >$3 trillion in foreign currency reserve, and counting. The money has to come back to the U.S. sometime. Unlike the Japanese in 1980s, they will not be buying trophies: Pebble Beach, Rockefeller Center, Hawaiian Hotels… Instead the Chinese will be looking to extend their manufacturing and supply chain base to reach consumers directly. This means buying Western brands.