China, the up-and-coming superpower
From the Economist:
“China reported that its overall trade surplus stood at $102 billion in 2005, up from $32 billion in 2004. China's surplus with America was $114.7 billion, news that caused further political consternation in the United States.”
From Reuters:
“Last month, the U.S. government said the current account deficit totaled $195.82 billion in the third quarter of 2005, up from $166.98 billion in the third quarter of 2004.”
China will be the new superpower and the rest of the world has learn to live it. On the simplified basis that money equals power, the US has to get used to dealing with China which is a less of a pushover then the EU.
China is very similar to the US in the way that they have a huge domestic market. Once China’s domestic market gets more developed, China is going to be an even stronger counterpart to deal with. I think that there is a possible scenario that China will have a strong positive export due to cheap labour within the country and a growing domestic market. China’s biggest resource is the 1.3 billion people and the way Chinese government can use these people.
The EU countries rely much more on the export to other the EU countries and the rest of the world and are therefore less independent. None of the European countries could have gotten away with running a deficit as the US has been able to do.
“China reported that its overall trade surplus stood at $102 billion in 2005, up from $32 billion in 2004. China's surplus with America was $114.7 billion, news that caused further political consternation in the United States.”
From Reuters:
“Last month, the U.S. government said the current account deficit totaled $195.82 billion in the third quarter of 2005, up from $166.98 billion in the third quarter of 2004.”
China will be the new superpower and the rest of the world has learn to live it. On the simplified basis that money equals power, the US has to get used to dealing with China which is a less of a pushover then the EU.
China is very similar to the US in the way that they have a huge domestic market. Once China’s domestic market gets more developed, China is going to be an even stronger counterpart to deal with. I think that there is a possible scenario that China will have a strong positive export due to cheap labour within the country and a growing domestic market. China’s biggest resource is the 1.3 billion people and the way Chinese government can use these people.
The EU countries rely much more on the export to other the EU countries and the rest of the world and are therefore less independent. None of the European countries could have gotten away with running a deficit as the US has been able to do.
posted by lizze at 1/13/2006 10:34:00 am
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