China challenges US global financial leadership
China speaks up, challenging US domination of global financial rules
SHANGHAI (AP) — The only major economy still growing at a fast clip, China is being unusually forthright in challenging the U.S.-led global order ahead of an April 2 summit on the financial crisis.
In his second rebuke of U.S. leadership this past week, the central bank governor, Zhou Xiaochuan, said China’s rapid response to the downturn — including a 4 trillion yuan ($586 billion) stimulus package — proved the superiority of its authoritarian, one-party political system.
“Facts speak volumes, and demonstrate that compared with other major economies, the Chinese government has taken prompt, decisive and effective policy measures, demonstrating its superior system advantage when it comes to making vital policy decisions,” Zhou said in remarks posted on the People’s Bank of China’s Web site.
Yeah, yeah … and the fact that your trade surplus fell off the edge of the planet, closing more than 20,000 companies in your Guangdon province, resulting in a loss of 2 million jobs is a front page success story? So much for state run economics! (via TradingEconomics.com, Bloomberg). It is estimated by China’s Tsinghua University that up to 50 million Chinese migrant works will lose their jobs in 2009.
China’s economy expanded only 6.8 percent in the fourth quarter of 2008, the slowest pace in seven years. Theirs has been primarily an export driven economy, and just like Walmart, they are always the low price leader. But they cannot (and neither can any other country) control market cycles. The world economy is now permanently interconnected … and infinitely more complex than most economists are willing to admit (including the brain trust inside the Obama White House).
But even with one of the fastest growing economies in the world (which includes India and some Asian countries), China remains one of the poorest in the world … if you’re Chinese. Just check out this Wikipedia entry for “per capita” personal income representing the major countries of the world … China comes in next to LAST! Right there between Mexico and Romania — that’s impressive.
So just WHO is benefiting from the expansion of this great economic powerhouse called China? In terms of quality of life issues, it’s not the Chinese people … they STILL live in a country where corruption is rife, freedom is limited and democracy is denied.
Tags: China, china economy
