China's growth has become tremendous over the years while US economy is slowing down. Does China's growth create such a huge impact towards America and on the world at large? then what is it?
2007-02-13 13:36:37 · 5 answers · asked by ? 2 in News & Events ➔ Other - News & Events
While China's growth has seemed tremendous it has also come at a cost that the country can not sustain. Living here I have had the opportunity to discuss this subject at great length, as well as see it with my own eyes. China's economy is a giant bubble that will rock the world when it breaks.
To start, the people still live in squallor next to western standards, and this is in Beijing, Shanghai, Guangzhou, Nanjing (the largest cities and the capital). The division between wealth is incredibly dramatic, those who have are very obvious, and those who don't are everywhere. The cities are so dirty they are only waiting for a disease to sweep through (anyone remember SARS and the damage it caused, especially when the government refused to recognize it? World AIDS officials have said that China could be the next Africa as far as an AIDS epidemic.)
China's infrastructure can not support it's growth. Look at this year's travellers for Chinese New Years. Planes, busses, trains, and the highways can not support the number of people moving. Everything is subsidized, look at the news stories about the US and Japan complaining about the government subsidies of major industries to the WTO. The average lifespan of the average business in China is less than 2 years, those that last longer and are Chinese are subsidized. Western companies such as (I hate to say it) Walmart and KFC last because they have a business model that works and the people want western things.
Perhaps the most telling is the fact that the state-run banks provide loans for government projects, basically the government loans itself money that it never repays because the projects themselves are not fiscally sound and will never see a profit. Three of the four national banks are considered insolvent and will probably be disolved or their debts bought by the government (again loaning itself the money).
Top that off with little to no workplace security, people's unrest, lack of consistent pay, misplaced financial investments, governmental corruption levels that are estimated at three times the black market adn the whole is a recipe waiting for disaster.
The Chinese economy is booming now, according to government reports, but I will not invest money here. I would go to India or bet on the US as safer since the growth, though slower, is much more stable and less likely to implode. China will be a scary place when all the cards fall down.
2007-02-15 17:23:45 · answer #1 · answered by Chris A 3 · 0⤊ 0⤋
The largest impact on America's ecomony is with its imports; especially when almost everything made in the US is imported from China.
My theory is that United States will begin to loose its economy status that it currently has in the upcoming years. Mainly because you have Japan and India especially advancing in the electronics area, such as videogames and computers. Since that is America's main strength; you also have China making a variety of goods.
As a result, China's power will increase economically while the United States economy will decrease.
2007-02-13 13:49:06 · answer #2 · answered by lets_group_hug 2 · 1⤊ 0⤋
China is already a superpower. They are exporting products all over the world. They are exporting triple to us if not much more.than we export to them. They have already had tremendous growth as you say. Another big problem we have is that the U. S. borrows millions of dollars. I don' t if it is true ,since I recently read but their money is helping to fund our military efforts in foreign countries .
2007-02-13 18:25:54 · answer #3 · answered by shawn 1 · 1⤊ 0⤋
relies upon on the path the international is going. China controls interior the generating; while India controls the technical international and customer amenities. each thing that we buys, seems made in China. each thing technical product seems to have customer amenities in India in trouble-free terms. If we are going the path of workstation technologies, India will take over. If we are going the path of the previous producer international from Operation administration that the belief got here from u . s . a . yet Japan incredibly made movements the belief, China will take over.
2016-10-02 02:42:00 · answer #4 · answered by riedel 4 · 0⤊ 0⤋
It's funnier than heck that all these conservative Wal-Mart lovers are buying products made in a Communist country. LMAO
2007-02-13 15:19:22 · answer #5 · answered by Philip G 1 · 0⤊ 1⤋