Could somebody explain to me the China hype?

Question

from what I understand all this growth that is going on in China is mainly due to trade agreements being changed and western companies moving to China for their cheap labor and dictorship style government. And they make everything cheaper then US so they sell more they we sell. I guess you can kind of compare it to the immigrants from third world countries coming to first world countries and underbidding everybody for jobs and the people who were making twice what they have to settle for now. IS this the big switching of power that plans to make "China" the next superpower? I think it misrepresented in the news . IT is like they are "outsmarting" the US or something, but in reality it is money from US or other first world countries which is investing to take advantage of the cover for more dictorship capitalism so to speak.

Answer 1

The thing with China (and India) is that they are not your typical third world producer.

That's the key.

China is not just a cheap source of labour where the lower end say production-line type of jobs go to. That is the typical third world type of production facility.

China has engineers, and good indigenous technology. And that is what basically makes it into a potential superpower. It doesn't have to rely - and hasn't relied - on US/European technology. Look how China just down a sattelite in a test. This is clearly a warning as to Mr Bush's plans to militarise space.
http://space.newscientist.com/article/dn11009-china-comes-clean-over-shotdown-satellite.html
For India:
http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2007/01/11/MNGLMNGFEQ1.DTL&type=printable

Furthermore China has its own MNCs. The PC/Laptop division of IBM was bought by a Chinese Company (Lenovo) some time back. Think about it, part of IBM being bought by a Chinese company.
http://news.com.com/Lenovo+completes+buy+of+IBMs+PC+business/2100-1042_3-5691487.html

These companies (you can think of Mittal Steel and Arcelor too for that matter) are at the cutting edge of technology.
http://www.businessweek.com/bwdaily/dnflash/jan2006/nf20060127_9242_db039.htm

China is also getting more involved in International Relations, via aid and cheap loans to African countries, and investments in Africa.
http://www.foreignpolicy.com/story/cms.php?story_id=3419

No longer does the West have the upper hand all the time.

Power is changing hands.

The reason is that in China (and India) they can do or are very close to doing what the west can do, but cheaper and probably better too, at all levels of technology, not just the low-tech stuff typical of the third world.

Answer 2

Some thoughts from watching China. It's not getting press because there's no real blood to see but the concern with China centers around our trade deficit and buying US Bonds on the open market. China is a super-power and has been for at least 80 years. Not only are we buying every thing they make, they're buying our debt (bonds). Will the US allow our debt to get to the point where it's unreachable (un-payable)? No, but economics is really a legitimate war between countries in this day and era of globalization. The danger is what exists in the regions of China. If you recollect in the past, China has been searching and reprimanded for taking technologically sensitive secrets to enhance their country. In short, reading Dr. Kissinger's book on diplomacy China doesn't have the technology to pull those resources (such plutonium, uranium, oil,gold, silver etc) from their regions but they know they are sitting on a virtual gold mine of resources besides a huge labor pool. They don't see it as dictatorship per say. Keep in mind it's a country cultivated of Confusicsiam (sp) where socialism is ingrained into their life. There is issues coming from the recent blooming of a new middle class in china from their economic revolution, but they very much operate under a socialist government. If any undoing is to happen to their rapid rise to power, it wil be from within and more than likely brought on by the middle class. I know I was a little on in answering some of your question but China genuinely has the potential to rival the US.