well, Japanese industry base is not bad,but frankly speaking ,I don't think its Industry capacity can be bigger than China today.
if you really compare the prodcution of industry , you will find easily that almost every industry section in china has bigger production than that in Japan,including cars, steel, food,electricity.coal,household appliance,concrete....etc......some of them are evern 3-4 times more than that of Japan
For exmple, CHina's steel production =USa+jAPAN+EU+Russia
China's concrete production>USA+JAPN+EU+Russia+INdia+canada+Autrali a
China''s ecelctricity production is 2 time more than that of Japan.
the undervalued RMB usually makes people underestimate the real economy power of CHina.
OK, let's talk. The US has 1/4th of your population, and yet has almost 4 times the nominal GDP. That means that an average Chinese is 16 times poorer than his US counterpart. Japan has less than 1/10th your population, and yet has a higher GDP. Forget the US, just to reach Japan's level of prosperity will take you decades.
Your production is more exactly because you're a low cost, poor country. Countries like the US, Japan, and most European countries outsource manufacturing to poor countries like China because they have cheap labour and a government who is in cahoots with corporations and which tries to suppress human rights/workers' rights unlike most democracies. Nothing to be proud of. If anything, it just shows you how far you have to go before you can compare China to western countries.
I have been to Hongkong,which nominal GDP is also 10-15 time more that in mainland CHina.
Frankly speaking, as a whole, the real life quality in urban area of mainland CHina can catch up with the real life quality of Hongkongese in 10-15 years at most.
Furthermore, even now, Chinese undustrialized urban area like Pearl Delta and Yangtsi DElta in fact already has life quality almost as high as HOngkong ,Taiwan and S.korea.
RMB is unvervalued tooooo much.
after all , the real life quality is no decided by quantity of USD you have ,but the quantity of cars, house,service and other comodities you can afford.
Nominal GDP proves everything. PPP measurement of GDP maybe good for comparing the price of potatoes, or in your case, noodles, but as soon as you start moving up the value chain, PPP is bust. A laptop costs the same in China as it does in the States (excluding price distorting factors such as taxes, subsidies etc). Same applies for any engineering goods, high value chemicals etc. If you want your people to prosper, you cannot continue to pay them peanuts. As they prosper, they will demand higher wages, and once they do, the cost of manufacturing or designing things goes up. Simple logic.
Anecdotes regarding your feelings about HK don't prove anything. And in any case, HK is nowhere close to Japan or the US.
If you are talking about bulk industrial good maybe quantity is important. Then again, maybe not. What is the quality of your steel and concrete production w.r.t to the industrialized nations? So you produce twice as much electricity as Japan? How do you compare with Japan on the basis of megawatt avaialble per person?
Most of these nations (maybe except Russia) has one thing that you would probably give your right arm to achieve, brand value of companies. Even South Korea, with her LG, Samsung and Hyundai has come far.
While an American computer company who uses China based factories to manufacture, say a RAM, would easily shift over to an Indonesian or Taiwanese company if the costs looks correct and quality comparable, just the name of Sony would influence a buying decision in a consumer's mind. go ahead and value the RMB correctly, and watch your exports fall apart
what you said indeed doesn't apply to CHina ,although it may apply to other developing countries. indeed..
:blum3:
most developing countries imported industry products while exporting non-industry products,so their industry product is very expensive while their service and non-industry products is cheap.
So the people in most developing country can not afford too much industry products,which directly make their life-style quite different from that in industrailized country----less cars, less household electric applaince.less modern communication.less chance of enjoy moder infrastructure..
But such case doesn't happen in China----the most strange developing country in the world.
one Hand ,China is the biggest industry-product manufacturer and its industry products is crazely cheap ;
on the other hand, the service in CHina also very cheap due to the cheap labour cost.
Chinese urban people can afford much more industry products than that in other developing countries---------the penentrating rate of household appliance can match industrialized country..
Furthermore, CHinese now owns one of best infrastructure system in the world. its HSR. expressway all may be even better than that of USA.
Generaly speaking, the life-style of people in CHinese industrialized belt( costal China) is quite like those moderate industrialized economies like S.korea, Taiwan, East Europe but quite different from those in most other developing countries.
brand is just a accumulation of reputation and experience.
Brand itself can not make product more useful.
quality of product is the king.
the one non-brand product has the same quality of brand products but has much lower price, then the brand product will disapper soon... just look at GM and CHinese cherry....what a big brand GM is ,but it live much harder than Cherry.
that is why Shanzai（山寨） products are so popular in China....same quality but lower price,then nobody will care "brand" so called.
Even Indian companies are far far head of their Chinese counterparts. Most large Chinese companies are government owned, so their fate is linked to the fate of the government. Private companies are the drivers of growth and efficiency in any large growing economy, and are as necessary as literacy for a developing country to grow fast and efficiently. The US is where it is today because of its businesses. India is following in the same path.
Those countries are further down the development ladder. What does "developing" mean to you? A country like Somalia and a country like China are both developing countries, but they're at different levels of development. In Somalia, they probably import everything, while in China, they only import high tech goods (I'm not talking about laptops here, but things like aircraft, high speed electronics, proprietary high value chemicals, pharmaceuticals etc). Well, China either imports them, or imports, then reverse engineers and copies them. That's not called R&D, but that's another issue.
You might think we're ignorant about life in China, but we've thankfully not been subjected to censorship by the CCP. Outside a few big cities, most of rural and semi-rural Chinese don't have washing machines, LCD TVs or home theatre systems. In the west, by comparison, such things are commonplace.
Some statistics please. Do you think I'm gonna believe that just because you say it? I can say quite the opposite without providing any proof either. Na na na nana....
you really don't know much about modern CHina today.
1. if you have been to both CHina and india yourselve, you would find it very funny to compare India and CHina.
2.the operation of CHina's State-owned enterprises is not as poor as the traditional State-oweed enterprises you think.
they are the upgraded dinosaurs----huge but smart and efficient and perform muich better than most private dinosaurs like GM.
For example ,ICBC is world most profitble and biggest bank .
3. private enterprises is the main body of Chinese economy.
I have no obligation to provide you link. you should google it by yourself.
of course, if you can not read CHinese, you will in fact block yourself from sinic world can have to read the information digested by your "independent medias" like BBC and CNN-----which always tell you how glory western world is and how crappy non-western world is !
BTW. the penentrating rate of household electric appliance,except cars, indeed can match industrlialized economy....of course, such is limited in urban area. rural area is a different story.but 50% of 1.3 trillion CHinese in fact live in urban area,
If you still feel that the life-syle in Chinese urban area is like that in India, then it just prove how successful you are blocked from the real world!
if you really want to break the "block" and learn more non-western world by yourself,you should study other's language.
Biggest and most profitable doesn't mean well-run. For corporations, things like P/E ratios, debt as a % of capitalisation, per employee productivity etc are used to judge how well run a large business is run. In comparison to any western private bank, ICBC or whatever will fall short on these benchmarks. So I suggest we stop these teenage arguments.
Correction. Foreign private enterprise is the backbone of the chinese economy. Most of the exporting done by China is not by chinese manufacturers, but by foreign manufacturers in china. You should read up on the "economic miracle" of your country....don't let a foreigner teach you. :wink:
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