China: The next economic superpower

China: The next economic superpower

China and India are the world's largest and second largest consumer markets. In 2003, both grew "more than twice as fast as the world average," according to the United Nations, which also said that continued "strong growth ... will benefit the world economy as a whole, reduce global poverty, and serve as an incentive to other developing countries." 

Data

 * Dean Calbreath, in the March 20, 2005, San Diego Union-Tribune, wrote: "In the past decade, foreign investments and worldwide demand for cheap goods have turned China's economy into the fastest-growing across the globe. It is expanding three times as fast as the U.S. economy, four times as fast as Europe's and nearly nine times as fast as Japan's.


 * "Some economists predict that by 2015, China will have enough spending power to become the world's primary engine of economic growth, unseating the United States, which has held that role since the end of World War II. By 2040 – and perhaps much sooner – China may have a greater gross domestic product than the United States, giving it the world's No. 1 economy. It now ranks at No. 3."


 * However, Calbreath writes, this growth is not without repercussions:


 * 1. The construction boom "has led to tight supplies and higher prices for concrete, lumber, copper and steel throughout the world."


 * 2. The skyrocketing increase in automobiles purchased in China has also helped to "push global oil prices to near record levels last year."


 * 3. The impact of China's cheap labor costs has managed to lower consumer prices worldwide, particularly for "such diverse items as televisions, toys, T-shirts, kitchen appliances, athletic shoes and power tools."


 * 4. The good news for China manufacturing has led to "massive layoffs throughout the world, as factories either were shut down or moved to China to be competitive. The Economic Policy Institute, a liberal-leaning think tank in Washington, D.C., said the United States is losing more than 2,000 factory jobs a month because of the shift of work to China."


 * "Although there is a strong likelihood that Asia will continue to enjoy strong economic growth through 2004 and 2005, there are some clouds on the horizon. Asia's strong pattern of economic expansion cannot happen without access to vast amounts of natural resources. In particular, China's spurt of industrial expansion over the past three years has fueled heavy demand for natural resources." November 2004.


 * "China is the world's second-largest buyer of US government debt as it recycles a US$124 billion trade surplus with the US. Not less significant, a series of recent multibillion-dollar acquisitions announced by Chinese companies around the world show that Beijing is aiming for a even bigger role on the global stage. China has long been the world's strongest magnet for foreign investment and is now sitting on a nearly $540 billion pile of hard currency, which it seems anxious to spend as the dollar plunges." December 2004.


 * "China has become the world's third-largest trading nation, following the United States and Germany, as its foreign trade value hit a record high of US$1 trillion in the first 11 months of 2004, and the whole year's figure was expected to reach US$1.1 trillion. Simultaneously, Shanghai reportedly has overtaken Rotterdam as the No 1 port in terms of cargo throughput, handling 382 million metric tons last year." January 2005.


 * "With its annual gross domestic product (GDP) growing by a breakneck 8% on average in the past 25 years, China has emerged as the picture of economic wonder. But its prosperity has come at a heavy cost to its ecology and natural resources." March 2005.


 * "In 2006, China's banking sector will be opened to foreign financial institutions and investment bankers under its World Trade Organization (WTO) obligations."

Shanghai Cooperation Organization (SCO) with its present membership of China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan in 2001, the origins of the S.C.O. date back to 1996 when Beijing initiated the Shanghai Five, which included all the current S.C.O. members except for Uzbekistan. The official purpose of the alliance, according to its founding declaration, is to form a comprehensive network of cooperation among the member states, including military security, economic development, trade and cultural exchange. 

SourceWatch Resources

 * China APPG
 * China International Public Relations Association
 * China-Iran-Russia axis
 * China's Corporate Friends in High (and Low) Places
 * China's oil industry
 * clash of civilizations
 * global security
 * Mandarins and Moguls Unite for China's Most-Favored Nation Status
 * National Committee on United States-China Relations
 * sustainable development
 * transnational organized crime

2003

 * Jonathan Fenby, "Enter the dragon," Guardian/UK, July 20, 2003: "China is growing with bewildering speed. When Tony Blair arrives for a historic visit, he will find a country undergoing social upheavals on the way to becoming an economic superpower."

2004

 * Editorial: "Cut the China trade gap," San Francisco Chronicle, January 4, 2004.
 * Peter S. Goodman, "Booming China Devouring Raw Materials. Producers and Suppliers Struggle to Feed a Voracious Appetite," Washington Post, May 21, 2004.
 * Ken Moritsugu and Tim Johnson, "China drains raw materials. Rapid growth fuels fears of bursting bubble," Detroit Free Press, May 29, 2004.
 * Richard H. Solomon, "Managing the Great Asian Transformation. Challenges and Opportunities in U.S.-China Relations," U.S.-China Business Council Gala Dinner, June 3, 2004.
 * Christine Heath, "Repercussions of China's economic boom," UPI, July 19, 2004.
 * Ross Gittins, "The dragon may have entered, but India is right there on its tail," The Age (Australia), August 14, 2004.
 * "Chinese steel mills still buying," CNN, September 28, 2004: "China's appetite for raw materials shows no sign of abating, with four steel mills agreeing to buy an extra $3.2 billion of Australian iron ore over the next 10 years, global miner BHP Billiton has said."

2005

 * "China Targets Kyrgyzstan Natural Resources," The Moscow Times, January 31, 2005.
 * Emad Mekay, "The Dawn of the Chinese Century?," Inter Press News Service, February 16, 2005.
 * "China emerges as global consumer," BBC, February 17, 2005.
 * "China envisions its rise as an economic superpower," busrep.co.za, February 21, 2005.
 * "What does China's future hold?," BBC, March 11, 2005.
 * Dean Calbreath, "Foreign investments, global demand for cheap goods and labor give China the fastest-growing economy in the world," San Diego Union-Tribune, March 20, 2005.
 * Dean Calbreath, "China's rise: The blueprint," San Diego Union-Tribune, March 20, 2005.
 * Dean Calbreath, "As U.S. trade gap balloons, China soars with more high-tech products and leaves behind its cheap-export reputation," San Diego Union-Tribune, March 20, 2005.
 * Dean Calbreath, "China's voracious appetite for materials drives up costs in West," San Diego Union-Tribune, March 21, 2005.
 * Dean Calbreath, "China gains diplomatic clout as opinion of U.S. in Pacific Rim weakens," San Diego Union-Tribune, March 22, 2005.
 * Daniel Smith, "Riding the Dragon, Soaring on Eagles," Foreign Policy In Focus, April 1, 2005.
 * Thomas L. Friedman, "It's a Flat World, After All," New York Times, April 3, 2005.

2002

 * Henry C.K. Liu, "The case for an Asian Monetary Fund," July 12, 2002.
 * Henry C.K. Liu, "China vs the almighty dollar," July 23, 2002.
 * Scott B. MacDonald, "China not immune to US woes," July 27, 2002.
 * Gary LeMoshi, "Enter the dragon ... at your own risk," September 26, 2002.

2003

 * "The Ruined Land: China's Water Crisis" in 4 parts, August 2003.
 * Hussain Khan, "Impact of declining US capital inflows," November 22, 2003.
 * John Berthelsen, "Asia's consumer revolution deepens," November 26, 2003.
 * Miao Ye, "China's Property Bubble" in 3 parts, December 2003.

2004

 * Macabe Keliher, "China's economy in 2004: Dimming or brilliant?," January 6, 2004.
 * Lynett Ong, "China's banking system a ticking time bomb," January 13, 2004.
 * Thalif Deen, "India and China fuel global recovery," January 16, 2004.
 * Ian Williams, "China-US: Double bubbles in danger of colliding," January 23, 2004.
 * Jayanthi Iyengar, "China, India confront the Wal-Marts," January 31, 2004.
 * Macabe Keliher, "The Rise of China": Part 1 "Dragon seizes market share"; Part 2 "Replacing US in Asian export market" and Part 3 "Economics overrides anti-Japan sentiment", February 10-12, 2004.
 * Peter Morris, "Powell fires opening salvo in trade war with China," February 16, 2004.
 * Li YongYan, "Applying brakes to China's red-hot economy," May 4, 2004.
 * Adam Wolfe, "Cooling China's economy and red-hot oil prices," May 29, 2004.
 * Jamie Miyazaki, "Beware the petrodragon's roar," June 10, 2004.
 * Travis Tanner, "The oil that troubles US-China waters," June 18, 2004.
 * Kosuke Takahashi, "Gas and oil rivalry in the East China Sea," July 27, 2004.
 * Kaveh Afrasiabi, "China rocks the geopolitical boat," November 6, 2004.
 * Scott B. MacDonald, "The Asian century is only delayed," November 24, 2004.
 * Henry C.K. Liu, "Currency at the Crossroads" in 4 parts, October-December 2004, with a "focus on the yuan."
 * Antoaneta Bezlova, "The Dragon stirs in a wary world," December 25, 2004.

2005

 * "China becomes No 3 trading nation," January 12, 2005.
 * "Chinese brands losing ground," January 22, 2005.
 * Robert E. Scott, "China trade costs US 1.5 million jobs,", February 9, 2005.
 * "China bucks global foreign investment trend," February 15, 2005.
 * Chalmers Johnson, "The real 'China threat'," March 19, 2005.
 * Conn Hallinan, "Cornering the Dragon," Foreign Policy In Focus, March 22, 2005.
 * Jim Loney, "China's Influence In Latin America Rising," Reuters, March 3, 2005.
 * "China's influence seen positive," BBC, March 5, 2005: "China's influence on the world is seen as positive by more people than is the case for the US or Russia, according to a new BBC World Service poll."
 * Yan Hua, "Wrangle over green GDP," March 16, 2005.
 * Chietig Bajpaee, "India, China locked in energy game," March 17, 2005.
 * "Over to Chinese MNCs," April 1, 2005.
 * "Trade war: US vs the rest of the world," Asia Times, April 2, 2005.
 * "West blocks China's cotton route," April 7, 2005.
 * Stephania Bianchi, "EU early warning for Chinese textile tsunami," April 8, 2005.
 * Billmon, "China Syndrome," Whiskey Bar, July 5, 2005.