View Full Version : China is growing at breakneck speed.
Swamp Fox
10-20-2005, 12:09 PM
At 9.4% per year, it's growth rate is almost as high as Singapore and South Korea at the relevant stage of development. (http://www.iht.com/articles/2005/10/20/business/yuan.php)
And its current economy is untenable - if it wants to continue growing, it MUST focus more on domestic consumption, because, when growth slows in the US, China will be in trouble. IOW, as China seeks to balance its economy with consumer spending, it will suck in imports, including those from the US.
Steve
10-20-2005, 12:38 PM
I read that a mitigating factor against domestic Chinese consumption is the lack of social services, health care plans, and retirement plans. Chinese save money at an astronomical rate because they know they'll need it for medical expenses and to live on when they retire. There are no alternatives.
Swamp Fox
10-21-2005, 01:54 PM
To calm the growing unrests, the government will have to open the purse strings and provide more social benefits - I have no problem with that.
But there's one good thing - consumers are starting to open their purse strings. (http://www.iht.com/articles/2005/10/21/business/spend.php) If all goes well, this will lower their reserves, as they suck in imports. And that will be good not only for them but for the world.
BTW, if you read the article carefully, you'll see that South Korea and Japan are also benefitting from consumer spending, which only adds to the good news.
ethics
10-21-2005, 01:57 PM
My friend just came back from China, he was in 5 cities in all and was visiting his parents (his mom was turned 60).
He was very impressed, says that the feeling in the air is like there's a major revolution in the making and he loved being part of the whole ambiance. Some of the pictures he brought back are STUNNING.
I can only share the funny ones.
Swamp Fox
10-21-2005, 02:08 PM
:lol: That's good, Leon.
When your friend said revolution in the making, was he talking about economic revolution, or political transformation?
ethics
10-21-2005, 02:32 PM
Just one feeling about the entire country and its people. He jusst loved the feel, 'like I am on a cusp of something big...'
Sierra Mike
10-21-2005, 03:19 PM
Bah. He should go there more often, then he'll at least be inured to it, like I am!
I love the funny English. I always take pictures of the signs whenever I come across them. Which cities did he go to?
SM
ethics
10-21-2005, 03:27 PM
Beijing, Shanghai, Suzhoi, Zhouzhaung, and Huangshan.
China's booming economy is a parasite to the US. Perhaps it's time for the US to do what's in its own interests, stop feeding the tumor and get the trade imbalance into balance.
John R. Beanham
10-21-2005, 04:07 PM
"breakneck speed."
Yep, and I keep thinking of Japan, and the 'Asian Tigers'.
John
Sierra Mike
10-21-2005, 04:18 PM
You mean Suzhou, right?
SM
ethics
10-21-2005, 04:22 PM
His spelling, and he is Chinese so my guess is as good as yours.
Sierra Mike
10-21-2005, 04:34 PM
Must be a typo. Suzhou is the likely destination. And the scenery at Huangshan is terrific.
SM
ethics
10-21-2005, 04:37 PM
The pictures of the water canals at Zhouzhaung are friggin incredible. Tells me what Venice SHOULD have been.
Sierra Mike
10-21-2005, 04:38 PM
The stench was terrible when I passed through there. Of course, it was right after some rains, so maybe that was it. (Sewage is a problem in China.)
SM
ethics
10-21-2005, 04:59 PM
He said no, it was fine. Here's a shot of Suzhou or inside btw...