Since the launch of economic reforms in 1978, China has become the world’s second-largest economy, the largest merchandise trader, the largest manufacturer and the largest creditor of the U.S…BUT the nation is still a laggard in so many respects that it still can’t compete with the United States. Let’s take a look at why that is the case.
So says Tseng Fu-sheng (WantChinaTimes.com) in edited excerpts from the original article* entitled Big but not strong: China still can’t compete with the US.
[The following article is presented by Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), the FREE Market Intelligence Report newsletter (sample here; subscribe here) and www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and has been edited, abridged and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.]
Fu-sheng goes on to say in further edited excerpts:
China relies heavy reliance on imported energy and resources, lacks independently developed technology for national defense, relies on Microsoft and Google for computer operating systems in the information era. [Furthermore,] in view of its backwardness in several key respects in terms of economic growth, it’s hard to see how China can compete with the U.S. in the following aspects:
- China’s per capita clean water resources amount to only one fifth of those of the U.S., a gap which will widen further as water pollution is getting worse in China and there have been increasingly serious water shortages.
- China trails the U.S. by far in the supply and reserves of energy, especially in view of the latter’s advancement in the exploration of shale oil, nuclear power and wind power, on top of its abundant reserves of petroleum, coal and natural gas.
- China has to import massive amounts of grain from the U.S. and Canada, while the U.S. is self-sufficient.
- China will be a grey society by 2020, leading to a contracted labor force which will dampen economic growth.
- China’s medical care and health system still occupy a low position in the evaluation of the World Health Organization.
- China’s political and social system have been strained by the eruption of various new issues as the country’s economy has grown, notably a widening wealth gap which has resulted in numerous social problems.
- People at the bottom of the social ladder have become increasingly discontent and restless as they are denied the fruits of economic development, the bulk of which are in the firm grip of those in the higher echelons of society.
- The middle class is emerging in China in the wake of rapid economic development and will pose a strong challenge to the autocratic rule of the Communist Party, entailing transitional labor and social costs for the regime, in sharp contrast to the stability of the U.S. system.
*http://www.wantchinatimes.com/news-subclass-cnt.aspx Copyright 2014 WantChinaTimes.com (The author is adviser to the national security section of Taiwan’s National Policy Foundation. Translated by WCT.)
With the Western central bankers conducting a clearance sale, and depleting their physical holdings in the process, China and Russia are importing gold at cheaper and cheaper price levels. In the war for gold, the East and West are still winning, but for vastly different reasons. Let me explain. Read More »
When it comes to reckless money creation, China is the king. Over the past five years Chinese bank assets have been fueled by the greatest private debt binge that the world has ever seen. Unfortunately for China (and for the rest of us), there are lots of signs that the gigantic debt bubble in China is about to burst, and when that does happen the entire world is going to feel the pain. Let me explain. Read More »
China is buying up the world – big time! Take a look. It’s all shown here in one map. Read More »
Most Americans simply don’t understand that Russia and China have the power to collapse the U.S. economy by going to a gold for oil system. All they have to do is pull the trigger. Let me explain. Words: 1515 Read More »
China continues to buy gold with both hands, keeping up all the gold they produce and importing even more! Imports were up 50% in October vs. the previous month; up 68% in November and up 74% in December. What will January bring given the continued weakness in the price of gold? Probably even more buying! Read More »
America’s GDP is still roughly twice as big as China’s (using market exchange rates). To predict when the gap might be closed, The Economist has updated its interactive chart below with the latest GDP numbers. This allows you to plug in your own assumptions about real GDP growth in China and America, inflation rates and the yuan’s exchange rate against the dollar. [Plugging in our assumptive] numbers China will overtake America in 2018. [Share your prediction in the “Comments” section at the bottom of the page.] Read More »
China’s miracle is driven by one thing and one thing only: its trade surplus with the U.S., which went from zero in 1990 up to now more than $300 billion a year [but] since the darkest hours of the 2008 global economic meltdown, China has made little progress in shifting its reliance away from exports, and, as a result, the Chinese economy is dangerously exposed to a renewed downturn in global trade. Words: 500 Read More »
Many internet sites are censored (i.e. access is blocked) in mainland China and I have often wondered if munKNEE.com was one of them let alone all those other much more provocative sites out there. If you are curious as to whether or not any of the sites you visit are, in fact, censored in mainland China then check out the following site where you can find out immediately. Words: 1382 Read More »
Of the 1000s of financial sites on the internet many contain biased, shallow, unbalanced and uncomplimentary commentary on the state of the Chinese economy and economic system – so much so that the state government has blocked access to said sites. This site prides itself in posting objective, substantive and balanced articles containing insightful analysis of the world’s financial affairs including those of China. Check them out. Read More »
In order to argue that we will not see a sharp slowdown in Chinese growth, it is not enough to claim that a) some expert or institution has predicted that Chinese growth will not slowdown, b)that China has enough savings in its coffers to bail itself out of a crisis or c) that Beijing leaders cannot tolerate growth below 8%, so of course growth will not drop below 8%. As greater evidence for the bear camp surfaces, China bulls need stronger justifications for their positions or risk losing credibility. [In fact, they need precise answers to 3 questions put forth in this lengthy but extremely insightful (dare I say, absolute best, article on the China sydrome to have ever been written!) article. Words: 4130 Read More »