Post by thread:[OT] China - economic development.

> > World's biggest consumer of cement and steel. > > > I don't recall ever hearing much about what China has or doesn't have > in the way of its OWN natural resources... It seems to me that they > have a big enough land mass that they ought to be net producers of a lot > of raw materials... > > BillW That's long bothered me, as well. Does it have something to do with the agrarian nature of the populace, or have they expanded their manufacturing base at the expense of their resource harvesting base? Perhaps they are trying to speed up their production to reach a level proportional to the US in population terms, without that pesky two hundred years of developing a resource harvesting infrastructure first. Mike H. ____________________________________________

They do. Japan invaded Manchuria during WWII for those resources. Right now, China is the world's largest producer of Coke (the stuff to make steel with, not the stuff you drink or snort) and they are limiting the export because they're keeping it for themselves, which helped (among other things) to drive up the price of steel. But the biggest issue IMO is the Yuan being pegged to the Dollar. No other industrialized economy does this, and the rest of the world will end up paying the cost. Think about it, as the dollar slides, American exports become more attractive, but guess what? the Yuan slides with it, and the Chinese exports to other countries (except America) become more attractive. You guys in Europe and Canada really need to think about this. The UN is totally out of whack, not just about the mid-east thing, but the economic gig. The WTO it total BS. The pegged Yuan should be everyone's concern, IMO. The Chinese are not going to lift it, they believe that it is in their best intrest to keep it pegged. So they keep buying dollars . . . --- William Chops Westfield <spam_OUTwestfwTakeThisOuTmac.com> wrote: {Quote hidden}> On Dec 6, 2004, at 7:50 PM, Russell McMahon wrote: > > > World's biggest consumer of cement and steel. > > > I don't recall ever hearing much about what China has or doesn't have > in the way of its OWN natural resources... It seems to me that they > have a big enough land mass that they ought to be net producers of a > lot > of raw materials... > > BillW > > ______________________________________________

It is what the politicians would want you to believe that Yuan's pegging the problem, and deflect the problem and so avoid the painful real-work that will have political cost. But most Western economists do not think that it is the problem and told China not to take it seriously. The problem is with having too big deficits for too long, it is already so when China was a closed economy but spread out to more countries and therefore less a single target. The other problem is US do not want to sell what they are the most competitive to China, namely the high tech and military products. Europe likely not to share the same problem as they are doing well on the infrastructure projects in China, and it looks like it is going to own the military deals. Incidentally if the Yuan will to rise, the effects to America are more expensive imports, its impact on America export is not much as China is not competing on the same products as America, unlike Japan or Europe. {Quote hidden}> They do. Japan invaded Manchuria during WWII for those resources. > Right now, China is the world's largest producer of Coke (the stuff to > make steel with, not the stuff you drink or snort) and they are > limiting the export because they're keeping it for themselves, which > helped (among other things) to drive up the price of steel. > > But the biggest issue IMO is the Yuan being pegged to the Dollar. No > other industrialized economy does this, and the rest of the world will > end up paying the cost. Think about it, as the dollar slides, American > exports become more attractive, but guess what? the Yuan slides with > it, and the Chinese exports to other countries (except America) become > more attractive. > > You guys in Europe and Canada really need to think about this. The UN > is totally out of whack, not just about the mid-east thing, but the > economic gig. The WTO it total BS. The pegged Yuan should be > everyone's concern, IMO. The Chinese are not going to lift it, they > believe that it is in their best intrest to keep it pegged. So they > keep buying dollars . . . > ____________________________________________

--- SM Ling <.....ipal11KILLspam@spam@singnet.com.sg> wrote: > It is what the politicians would want you to believe that Yuan's > pegging the > problem, and deflect the problem and so avoid the painful real-work > that > will have political cost. But most Western economists do not think > that it > is the problem and told China not to take it seriously. that's nuts and I don't believe it's accurate, if the currency floated there wouldn't be such deficits, and #2 if the currency floated then China wouldn't be forced to buy so many dollars on the open market, in effect financing the trade deficit. Yip, China is financing their trade deficit with the US. And WalMart makes all the money. > The problem > is with > having too big deficits for too long, it is already so when China was > a > closed economy but spread out to more countries and therefore less a > single > target. See my other statement, it's all about floating the currency. > The other problem is US do not want to sell what they are > the most > competitive to China, namely the high tech and military products. Yip. We keep the cool stuff like star warz and sharks with lazers attached to their forheads for ourselves. > Europe > likely not to share the same problem as they are doing well on the > infrastructure projects in China, and it looks like it is going to > own the > military deals. > > Incidentally if the Yuan will to rise, the effects to America are > more > expensive imports, so what? What do I care if the bike I buy my kid is $80 from China or $90 and made in Ohio? It is totally transparent, the marginal utility is nihl. Besides, it's just crazy when a DVD player is $25. How many do I need? I spend more than that on gas in a week. {Quote hidden}>its impact on America export is not much as China > is not > competing on the same products as America, unlike Japan or Europe. > > > > They do. Japan invaded Manchuria during WWII for those resources. > > Right now, China is the world's largest producer of Coke (the stuff > to > > make steel with, not the stuff you drink or snort) and they are > > limiting the export because they're keeping it for themselves, > which > > helped (among other things) to drive up the price of steel. > > > > But the biggest issue IMO is the Yuan being pegged to the Dollar. > No > > other industrialized economy does this, and the rest of the world > will > > end up paying the cost. Think about it, as the dollar slides, > American > > exports become more attractive, but guess what? the Yuan slides > with > > it, and the Chinese exports to other countries (except America) > become > > more attractive. > > > > You guys in Europe and Canada really need to think about this. The > UN > > is totally out of whack, not just about the mid-east thing, but the > > economic gig. The WTO it total BS. The pegged Yuan should be > > everyone's concern, IMO. The Chinese are not going to lift it, > they > > believe that it is in their best intrest to keep it pegged. So > they > > keep buying dollars . . . > > > > ______________________________________________

At 10:34 AM 12/7/2004 -0800, you wrote: >that's nuts and I don't believe it's accurate, if the currency floated >there wouldn't be such deficits, Umm.. China is actually running a deficit in their total foreign trade, so perhaps the yuan is *over* valued. Here's a good article from an influential journal on the whole situation: http://www.foreignaffairs.org/20040901faessay83510/peter-g-peterson/riding-for-a-fall.html Best regards, Spehro Pefhany --"it's the network..." "The Journey is the reward" speffKILLspaminterlog.com Info for manufacturers: http://www.trexon.com Embedded software/hardware/analog Info for designers: http://www.speff.com ____________________________________________