Thank you for the article and your raising our awareness of the double standards of the West. A GNI of 95.9 percent or even the "politically correct" 59 percent for the United States is nothing good to write about. How are the mighty falling? The sad part is the deep hole the US is because of an unncessary war in IRAQ and over stretched military that is policing the world at the expense of the citizens.
Chinas future is scary to contemplate. The unpredictability of the Chinese leadership is always a concern, but we should be really concerned when China gets absolute power as the # 1 economic power.
China's socio-economic condition will continue like this: the rich gets alot more richer and the poor gets extremely poor. The standard of living cannot be worse for those poor folks who barely make $5 a month in the village. Then there will be so many societal problem with this bigger and bigger status gap. More crime will occur as a result.
This is exactly the opposite of what the country has set out to achieve in the earlier communism centuries. During those times the government arrests the capitalist and all their family members (such as landlords or business owners) for claiming that they exploit the lower class. And today that is what's happening. It's rather sad.
There is no doubt that China's finest hour lies ahead but China still needs to improve in its relations with various countries.
I note particularly China's is adopting a very stubborn or arrogant approach in its response to critics who feel that China in its pursuit of being the no1 global economic superpower is undermining its international obligations.
What is of most concern is China refusing to take heed to any advice concerning their policies, a point raised by Anandvy. China is already demonstrating that once in power, it would do whatever it likes and there is nothing anyone can do about it. I have my concerns for the future.
Dave, Thanks. You just dug up the evidence of what's ailing many Western countries: debts. Politicians and economists in the West will tell you they prefer to use GDP rather than GNI but the comparisons are always unfavorable when you are saddled down with too much debt. In the case of the United States, national debt is expected to reach $14 trillion this year! That's not something you want to trumpet.
The numbers can be calculated, though. US gross national income in 201 was estimated at $14.1 trillion, according to the World Bank and GDP at $14.7 trillion, according to the CIA World Fact Book. If total debt rise as expected to $14 trillion, that would put it at 95.9 percent of GDP! The CIA World Fact Book put US public debt as percentage of GDP at 59 percent (estimated) in 2010.
Bolaji, I had to check out your statement that the World Bank does not offer data on external debt as of percentage of GNI for developed nations and sure enough you are correct, which I also found interesting.Anyway, since I already dug up the info, I figured I would share what the World Bank does offer on the other nations (years 2005-2009, but you can get data for 20 years).Sorry for the long post.
The Chinese are tightening because they have no choice.China today is saddled with Double Digit Inflation and Asset Bubbles(especially in real estate);all because of Cheap Credit and Easy Money.If the Authorities don't rein in either of these two monsters today,the crash down the line will be extremely,extremely terrible[There is a strong possibility that it will make the Great Recession in the US feel like a walk in the park).
"While politicians and small business owners in the US and Europe are begging banks to start lending again, China is instead tightening lending requirements and repeatedly raising borrowing rates and bank capital reserves."
I do agree that the effective economic policies by the Chinese government is one of the major reasons behind the rapid growth in the economy. However, is the policy by Chinese government to tighten the lending to businesses a good one? Is it because of this policy that the economy has maintained a consistent growth, or is the policy coming in the way of a much higher growth? Would love to read experts' comments on this.
I agree with you that chinas finest hour is ahead but I am not sure if things will change drastically in future. China will continue to be communist country with still shrouded in mystery. It did little to stop the IP infringment in china, it did little to stop the human right violation (remained absent for Nobel peace ceremony and forced its alliest to remain absent), artificially kept the Yuan valuation low, so many cyber attatcks on other nations, list goes on. I dont know what will be the fallout on world politics if china becomes No 1 economy and I dont think any country has any say in chinas policy matters because they simply wont listen to anyone.
Great analysis on how companies can look at China as an opportunity rather than a competitor or a black hole for jobs. It's true there will have to be changes, and there are areas that China can be more open in, such as less control of the media and information coming out of China. But there have been announcements this week--a big one from GE--in which partnership with China netted US jobs. Your are right--China's leaders have the chance to inspire not just their own citizens but the world's as well.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.