I guess that if each step in global free trade leads to consistantly to this certain end, those leaders who work at it are either hopful or stupid. 
Posted on 09/29/2004 10:12:39 AM PDT by Willie Green
China Is Becoming a Global Manufacturing Center Despite the world economic downturn this year, China's economy maintained a robust development momentum that has attracted an inflow of large amounts of overseas funds and demonstrated China's appeal as a rising "global factory."
Statistics show that in the first eight months this year, direct overseas investment in the country totaled US$27.44 billion, an increase of 20.4 percent over the corresponding period last year.
China registered an average economic growth rate of 8 percent on a yearly basis over the last 20-plus years since it launched the reform and opening-up policy. And the country has been the largest recipient of foreign direct investment (FDI) among developing countries for eight straight years, with the annual FDI in the country standing at over US$40 billion.
Many international business tycoons hold that China is turning into a global manufacturing center.
The consensus was echoed by magnates of 30 multinational corporations and well-known figures from political and economic circles who attended the just-concluded Tianjin Mayor International Counselors Forum.
"I have never doubted that China will become the one of the leaders of the world economy," said Alexander M. Haig, Jr., former US Secretary of State who now is chairman of a US company.
A report on the global investment situation in 2001, initiated by the United Nations Conference on Trade and Development, shows that at present nearly 400 of the Fortune 500 enterprises have invested in more than 2,000 projects in China.
The world's major manufacturers of computers, electronic products, telecommunications equipment and petrochemicals have expanded their production networks into China, according to the report.
In the past several years, world-renowned multinationals, including Microsoft, Motorola, GE, JVC, Samsung, AT&T and Siemens have set up more than 100 research and development centers in China which constitute a new investment area of foreign businesses.
"The era of China is arriving," said Harald Lux, president of the OBI Group of Germany, citing the fact that China is the world's largest market for digital converters and the second-largest market for personal computers in Asia.
Many multinationals are optimistic about the development of China's economy and China's market following its imminent accession to the World Trade Organization.
In recent years, many developed countries have started to move their funds and technology-intensive manufacturing industries into developing countries to achieve more profits. And China can handle such industrial transfer, said Zhang Yansheng, a famous Chinese economist.
China's capability to carry out this sort of transfer is based on the expansion of economic development zones (EDZs), known as the "test fields" of China's reform and opening-up and which have become the most active area of the Chinese economy, said an official in charge of the country's EDZ development.
Statistics show that state-level EDZs used US$2.865 billion in the first half of the year, up 56.22 percent from last year's same period and two times the growth rate of the total FDI in China in the first six months this year.
Many multinational corporations have worked out plans to make China the base for marketing their products, purchasing raw materials, developing new products, product pricing and human resources development.
Jenny Wang, vice-president of Motorola, said that China boasts many advantages in developing manufacturing industries. Citing the telecommunications sector as an example, Wang said China will not only become the manufacturing center of telecommunications equipment in Asia, but also is expected to grow into a global hub.
Motorola has poured a total of US$3.7 billion into China, and by the end of September, Motorola's business volume in China accounted for 15 percent of the company's total for the nine-month period.
She said China's very stable policies, fast-growing economy and huge market are the major attractions to foreign investors.
Gan Chee Eng, vice-president of the US company Amway, said that China's WTO entry is definitely favorable for his company's business development, and that his company is evaluating the possibility to make China Amway's only production base in the world.
The global environmental protection giant Vivendi Group of France, which boasts an annual turnover of US$70 billion, invested 100 million yuan (US$12.04 million) in constructing China's first large-scale dangerous waste treatment center in Tianjin, a north China port city.
Sources with the group said that Vivendi is speeding up its pace to enter China's market and has listed China as one of the major regions for Vivendi's business.
Local economists said that in the course of a new-round of global economic transfer, the trend of manufacturing industries moving to China has become more obvious with each passing day.
They said that to accept large-scale foreign-funded manufacturing industries, China has many advantages in terms of market scale, social safety and stability, talented people and infrastructure.
At the same time, China's global-oriented labor-intensive industries have taken shape, they added.
The PRC are like the NEP on steroids! Selling them the rope.... DOH!
Good analysis on Red Chinese thinking. I sort of seen the Chi-Com's economy as sort of the idea Lenin had with his NEP or maybe what Gorby wanted and tried with the USSR but failed at it. BUMP
When did they overthrow their Communist government? If they were a free people, they wouldn't be such a great source of dirt-cheap labor. They're even cheaper than Mexicans -- and Mexicans work for less than $0.50 an hour.
Asian Co-Prosperity Sphere Redux.
Programming, systems analysis, very high speed / high density IC design, and certain medical work like radiology *are.* Do a search on +Bangalore +engineering and see what you come up with.
Perhaps that won't seem like such a sanguine outcome when the US breaks apart into several regions, and the Chinese Communists start building military bases in California or Oregon. Just how long do you think a second-rate, second-world US can hold out against invasion?
Hardly. The ratio at birth is about 1.09 males per 1 female. Other estimates put it as high as 1.18 males per every female.
What *is* the modus operandi with President Bush? For the life of me I can't figure it out.
Yes, do tell. Last I looked, the government was still in charge of economic planning; the country was still governed by a one-party "cadre," and any dissent from the ruling hegemony was met by imprisonment (as laogai contract slave labor) or death. What did I miss?
Well this fellow missed the fact that, first the Chinese have to be on par with us; another words we going to be standing still for the next 30-40 Years for the Chinese to catch up with us and be on even level, and than we can talk about rate of growth.
Big difference...apples and oranges if you ask me and I ain't no economist of any kind!.
BTW on a different thread sometime ago, some wise guy in Europe concluded that we have to stay put for an average of 15 Years, so the Europeans can catch up with us on most levels!
You draw the conclusions!
There is a difference between the Chinese and American business people. The Chinese executives are persuing profits for a purpose, that of making their country stronger. The American executives are persuing profits for the sole purpose of increasing their own yearly bonuses, without regard for anyone or anything else.
In 2000, Bush had promised Prosperity With A Purpose. But the business community has undermined it.
The last I read ---- there were some students standing up to some tanks --- but I never hear they managed to overthrow the Communist government they were up against --- that was many years ago though --- maybe there was some revolution or coup that we didn't hear about? I'm pretty sure it's that same regime Mao put into place --- unless he's been redefined so that he's now called a Capitalist, freedom fighter.
I never said they were free. You'll note I mentioned the words totalitarian and dictatorship.
It's simply that I believe that from Deng Xiao'Ping onwards they've been more pragmatic. They've kept the absolute power and the unifying icons, propaganda, etc of communism and started trying to make money hand over fist by deregulating.
No one is allowed to rock the boat politically, but people are allowed to go for private property, to make money and to invest in projects they choose and design themselves.
You won't get arrested for being rich now although you will for political activity.
This was all helped when Deng helped their military realise that Communist economics would keep them huge and thirdworld in nature whereas by supporting his scheme they could modernise faster and the army could run their own moneymaking capitalist schemes to fund expanmsion. At which they're doing quite well.
China is communist now to the same extent that Iraq was democratic when Saddam won his election the year before last with 99.6% or whatever it was.
Dictatorship yes, communist no.
Its a state with rapidly expanding economic freedoms and rigiddly controlled political activity.
I think some people have a death wish for America.
Their PPP already passed 50% of American PPP. Ten years might be enough. They will still be much poorer per capita, but because their population is four times larger their economy will be of equal (PPP measured) size. After ten years they will be stronger.
I guess that if each step in global free trade leads to consistantly to this certain end, those leaders who work at it are either hopful or stupid.
Well this fellow missed the fact that, first the Chinese have to be on par with us; another words we going to be standing still for the next 30-40 Years for the Chinese to catch up with us and be on even level, and than we can talk about rate of growth.
Thank you! But don't tell the doom and gloomers about how far China is behind us....it might interfere with Willie's mission of spreading misery and discontent throughout America.
Personally I thank God everyday for the blessings we have as Americans.
Any "mouse that roars" could defeat us. Let us surrender now Give up. Disarm. Let it be our generation that disgraces the Founders and more than two hundred years of brave Americans? Is that the issue?
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