Opinion in respect to the rise of China
In the past twenty five years, China has enjoyed a healthy economic growth every year. Massive wealth has been created and millions of Chinese have risen above the global poverty line. Throughout China, one can witness the rapid modernization of infrastructure. You will see superhighways, tall buildings, airports and telecommunication facilities. The impact of China’s economic development has affected the world wide economies in a substantial manner. Due to the rapid economic growth, the demand for energy has increased rapidly. The country has become one of the largest consumers of oil and electricity in the world. This demand will drive the price of energy up and it may add the pressure of inflation creating pressure on other developed countries.
China’s growing impact in global manufacturing is going to put enormous pressure on global economies, in order to protect their local manufacturers. Developed countries will definitely put pressure on China. Countries most likely to benefit from the expansion of China’s trade include exporters of capital and resource intensive products, while countries that specialize in labor intensive export that are similar to those of China, may face a new challenge. Expanding trade could increase regional income imbalances, while foreign competition could face the increased pressure of rising unemployment. Since 1979, China has been moving away from its communist state-controlled economy and it has adopted some of the concepts of free trade. It has been privatizing many businesses but the growth of China has created social and environmental problems. There is a huge gap between the rich and the poor. Wealth and income are highly concentrated and the rural population still suffers from low incomes. The growth of industry also created problems of pollution and shortages of energy. Other challenges include quality of products, billions of non-performance loans and exchange rates of Chinese currency (RBM).
Things that go up must come down. Do you think the rise of China will continue?
Wednesday, March 5, 2008
Tuesday, March 4, 2008
Video
Topic of the video: Will the rise of China’s economy leads to world wide inflation?
Source:http://www.tudou.com/programs/view/2GZX3EWRv9k/
Summary:
This video is a discussion by an economist in China regarding his thinking on the world wide inflation that is affected by the rise of China’s economy. He indicates that China’s Consumer Price Index (CPI), a main measurement of inflation, rose to 7.1 percent in January, 2008 and he expects the figure in February, 2008 will not be slowed down due to the increase in product demand during the Chinese New Year. Prices of foodstuffs and energy rose substantially due to the strong demand and the record poor weather in China, with snow storms that covered a good portion of the country. On the other hand, raw materials, labor costs and land costs continue to rise together with the stronger currency. China’s growing economy has serious implications. It will push up price of exported goods. According to a major newspaper in England, the imported goods from China have already put pressure of inflation on England. Since China is also a major importer for the United States, price increases will be difficult to prevent in the USA. He expects the rise of China’s economy will impact world wide inflation.
My comments:
Before the post-1970s, when China’s economic reforms had not even started, a U.S. slowdown was usually enough to change the supply and demand balance in the natural resources markets and ease inflationary pressures. Commodity prices would be self-correcting. They would rise to the point that they slowed other major economies. They would then fall and the inflation pressures would evaporate. With the rise of China, this situation may change. China has stabilized the prices for energy, food and currency. It is creating economic pressure for the developed economies, such as the United States and England. With the rise of China, the demand for energy, foodstuffs and other commodities continue to rise. China has to satisfy the local demand before she can consider the export of goods. In order to balance the economy of China, the salary of workers has to increase to maintain the same living standard and price increase of export goods. This cannot be prevented. The rise of China will have an important impact on world wide inflation.
Source:http://www.tudou.com/programs/view/2GZX3EWRv9k/
Summary:
This video is a discussion by an economist in China regarding his thinking on the world wide inflation that is affected by the rise of China’s economy. He indicates that China’s Consumer Price Index (CPI), a main measurement of inflation, rose to 7.1 percent in January, 2008 and he expects the figure in February, 2008 will not be slowed down due to the increase in product demand during the Chinese New Year. Prices of foodstuffs and energy rose substantially due to the strong demand and the record poor weather in China, with snow storms that covered a good portion of the country. On the other hand, raw materials, labor costs and land costs continue to rise together with the stronger currency. China’s growing economy has serious implications. It will push up price of exported goods. According to a major newspaper in England, the imported goods from China have already put pressure of inflation on England. Since China is also a major importer for the United States, price increases will be difficult to prevent in the USA. He expects the rise of China’s economy will impact world wide inflation.
My comments:
Before the post-1970s, when China’s economic reforms had not even started, a U.S. slowdown was usually enough to change the supply and demand balance in the natural resources markets and ease inflationary pressures. Commodity prices would be self-correcting. They would rise to the point that they slowed other major economies. They would then fall and the inflation pressures would evaporate. With the rise of China, this situation may change. China has stabilized the prices for energy, food and currency. It is creating economic pressure for the developed economies, such as the United States and England. With the rise of China, the demand for energy, foodstuffs and other commodities continue to rise. China has to satisfy the local demand before she can consider the export of goods. In order to balance the economy of China, the salary of workers has to increase to maintain the same living standard and price increase of export goods. This cannot be prevented. The rise of China will have an important impact on world wide inflation.
Thursday, February 14, 2008
Free Post
The Rise of China
Twenty years ago, when China opened its door for economic reforms, no one could have image the effect it would have on China or the world. Today, she has the largest population, second largest defense budget, and is the world’s second largest economy. This allows China to challenge some of the most powerful countries, including the United States, for control of the international stage.
The leaders of China have spent time visiting other countries and leaders from other countries have frequently visited China; these include the United States, Japan and Canada. Her relationship with other countries has never been better. China has made it clear that she wants to build a peaceful and harmonious world. It is against her wish to use military force. Her focus now is to assist the poor developing countries and to develop a peaceful world.
China will continue to have an important impact on the world economy. The growth of China’s trade provides more affordable consumer goods. If China can adhere the rules of the World Trade Organization, it will offer numerous opportunities to foreign investors and traders. The country has $1.5 trillium worth of foreign currency, with a good portion in U.S. dollars. If China were to dump its U.S. dollars, it would definitely hurt the United States, and this is one of the important reasons that the world’s perception of China as a major power is growing. Cheap Chinese exports have kept inflation low and the purchase of American treasury bonds has helped the U.S. to finance her debts. This also allows China to invest heavily in the financial and energy sectors around the world. The Olympics this year will put China on the international stage and everyone is longing to see the performance of China as the host of the Games.
As China continues to grow in her economic and military power, do you think she will become a threat to the world or will China get along with other countries? What are the positive and negative implications of the rise of China?
Twenty years ago, when China opened its door for economic reforms, no one could have image the effect it would have on China or the world. Today, she has the largest population, second largest defense budget, and is the world’s second largest economy. This allows China to challenge some of the most powerful countries, including the United States, for control of the international stage.
The leaders of China have spent time visiting other countries and leaders from other countries have frequently visited China; these include the United States, Japan and Canada. Her relationship with other countries has never been better. China has made it clear that she wants to build a peaceful and harmonious world. It is against her wish to use military force. Her focus now is to assist the poor developing countries and to develop a peaceful world.
China will continue to have an important impact on the world economy. The growth of China’s trade provides more affordable consumer goods. If China can adhere the rules of the World Trade Organization, it will offer numerous opportunities to foreign investors and traders. The country has $1.5 trillium worth of foreign currency, with a good portion in U.S. dollars. If China were to dump its U.S. dollars, it would definitely hurt the United States, and this is one of the important reasons that the world’s perception of China as a major power is growing. Cheap Chinese exports have kept inflation low and the purchase of American treasury bonds has helped the U.S. to finance her debts. This also allows China to invest heavily in the financial and energy sectors around the world. The Olympics this year will put China on the international stage and everyone is longing to see the performance of China as the host of the Games.
As China continues to grow in her economic and military power, do you think she will become a threat to the world or will China get along with other countries? What are the positive and negative implications of the rise of China?
Tuesday, February 5, 2008
The Response Piece: The Rise of China
“Welcome to the Peaceful Rise of
This statement indicates that the
The two countries will firmly implement the agreements that were reached, and constantly expand common interests, in the basis of equality, mutual respect and mutual trust to ensure long-term, healthy and stable development. Both sides believe that they must properly handle the issue of
The relationship between
Monday, January 21, 2008
Introduction
Since market-oriented reforms were introduced in 1979, China's economy has been highly successful. It permitted a wide variety of private enterprise in services and light manufacturing as well as the development of the stock market and a banking system, together with the growth of the non-state sector and the opening of the economy to increase in the world. As the largest country in terms of population and a leading designation for foreign investment, it has also modernized its military and adopted a more asserted diplomatic posture. As a Chinese student, I have a serious interest to explore the international implication of the rise of China. Will it pose a threat to peace and security in East Asia? Will there be a cold war between China and United States? What do you think of the impact that China will have on security in the Asia-Pacific regions? What do you think are the proper policies for the united States to adopt in its relationship with China? These topics are widely debated, discussed and presented by scholars, historians and popular publications. It is not difficult to find information. In North America, you have all the freedom to express your point of view on these topics, but in China, the door is only half-open. Certain points of view are still monitored or controlled by the government, in particular, topics in politics and democracy. Some of the information or ideas that were discussed will wait to be reformed.
Wednesday, January 9, 2008
The World Emerging Power - China
The figures in the following chart give a statiscal glimpse of
| Country | | |
| Population | 1.3 billion | 33.4 million |
| Population Growth | 0.6% | 0.87% |
| Percentage of Population Under Age 14 | 20.4% | 17.3 |
| Life Expectancy | 72.9 years | 80.3 years |
| Infant Mortality for Children Under 5 per 1,000 | 22.1 | 4.6 |
| Percentage of Population Living in Poverty | 10% | 15.9% |
| United Nations ranking Out of 177 Countries | 81 | 6 |
| Gross Domestic Product | $2.7 trillion | $1.18 trillion |
| GDP per capital | $2,069 | $35,700 |
| GDP Growth | 11.1% | 2.8% |
| GDP by Sector | Agriculture: 11.7% Industry: 48.9% Services: 39.3% | Agriculture: 2.1% Industry: 29% Services: 68.9% |
| Exports | $969.7 billion | $401.7 billion |
| Imports | $751.9 billion | $356.5 billion |
| Military spending as percentage of GDP | 4.3% | 1.1% |
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