China warns Obama about Dalai Lama

[badguy2000]

Obama to skip Tibet while talking about human rights in Asia
Obama seeks to please China, skips Tibet in speech: Rediff.com India News

Obama knows what he should do in the front of his banker.

 

[Known_Unknown]

Banker? It seems like many Chinese are unable to grasp the reality of the US-China relationship. China holds ~$2 trillion of currency reserves, out of a GDP of ~$4 trillion. That's 50% of the value of their GDP.

The US GDP, on the other hand, is ~14 trillion. If China starts acting tough tomorrow, all the US has to do is start printing more money. That would make the value of the US$ fall, and guess who would be the hardest hit country? The US? Lol, no, it would be China.

The value of their economy and currency would tumble overnight, and guess what, $4 trillion is a lot closer to $0 than $14 trillion is.

The situation is more akin to a small bank in which Bill Gates has a chequing account. If the value of Bill Gates' personal worth falls, it may hurt him a little, but it would definitely sink the bank!

 

[badguy2000]

Banker? It seems like many Chinese are unable to grasp the reality of the US-China relationship. China holds ~$2 trillion of currency reserves, out of a GDP of ~$4 trillion. That's 50% of the value of their GDP.

The US GDP, on the other hand, is ~14 trillion. If China starts acting tough tomorrow, all the US has to do is start printing more money. That would make the value of the US$ fall, and guess who would be the hardest hit country? The US? Lol, no, it would be China.

The value of their economy and currency would tumble overnight, and guess what, $4 trillion is a lot closer to $0 than $14 trillion is.

The situation is more akin to a small bank in which Bill Gates has a chequing account. If the value of Bill Gates' personal worth falls, it may hurt him a little, but it would definitely sink the bank!

guy.

70+% of USA's GDP is service secton...that is bars..rents...wall street...Golfs...NBA...Hollywoods....and shares of Dow Jones.. need I say more?

USA's economy is full of bubles fished out by dollar hegemony. If USA have to live on what they produces ,their life quality would go down and down...they are gaining what other works out without any pay in fact.

measued by real economy like industry outputs, you can easily find that in fact any industry section of USA produces much less than China's.


guy, the final of wars depends on logistics and logistic depends of the supply of all kinds of materials and goods. all kinds of goods depends on the output of industry.


USA government sent a stimulus package of 800 billion USD and china's is 600 biliion USD. on surface , USA's is much bigger than China's .

But in fact, due to the devalue of RMB, USA's stimulus package has much less purchase power than China's.

for example. China's stimulus package can afford 12000 KM long high-speed railways easily....if USA want to buiild 12000 KMs-long highspeed railway ,the cost might be 8 times more than China's

 

[Known_Unknown]

70+% of USA's GDP is service secton...that is bars..rents...wall street...Golfs...NBA...Hollywoods....and shares of Dow Jones.. need I say more?

USA's economy is full of bubles fished out by dollar hegemony. If USA have to live on what they produces ,their life quality would go down and down...they are gaining what other works out without any pay in fact.

measued by real economy like industry outputs, you can easily find that in fact any industry section of USA produces much less than China's.

Yea, because theirs is a post-industrial economy. Ever heard of such a thing? They don't need to produce most low value goods because they pay the third world (including China) peanuts to produce it for them. And the rest of the world would rather work for peanuts than starve. Get my point?

Even so, all the strategic industries producing military equipment, R&D, and associated high tech goods are in the US. The dollar value of the goods produced by the US far outstrips that produced by China. China has no Microsoft, or Lockheed Martin, or GM. What China has are bloated, inefficient, state owned industries that copy foreign designs and are bankrolled by the CCP through numerous failures.

There's nothing special about China-indeed, China is expendable for the US. The US can make plastic water bottles or cotton clothes in any country it wants-there are enough third world countries in the world to do so. However, the US is irreplaceable for the time being, because unless they keep consuming as much as they do, China and other export based economies of the world would find themselves in dire straits.

guy, the final of wars depends on logistics and logistic depends of the supply of all kinds of materials and goods. all kinds of goods depends on the output of industry.

Yes, and can you prove that on a war footing, the US will be able to produce less tanks, aircraft and ships than China? Like I said before, the US is not stupid to outsource its strategic industries to other countries. China still imports a lot of military hardware from Russia, while US is not dependent on anyone. Also, the quality and quantity of US military hardware far exceeds anything China currently produces and will produce in the future.

USA government sent a stimulus package of 800 billion USD and china's is 600 biliion USD. on surface , USA's is much bigger than China's .

But in fact, due to the devalue of RMB, USA's stimulus package has much less purchase power than China's.

for example. China's stimulus package can afford 12000 KM long high-speed railways easily....if USA want to buiild 12000 KMs-long highspeed railway ,the cost might be 8 times more than China's

Of course. China is much poorer than the US. So its workers will work for peanuts compared to the average American worker. That doesn't mean that you will get anything done quicker or more efficiently. In any case, as long as the US$ is the primary world currency, China's future is tied to the future of the US. If the US sneezes, the rest of the world may catch a cold, but China may well have to be hospitalized with pneumonia.

 

[no smoking]

India is not going to buy worthless assets, China is the one trapped into buying worthless US paper not India, and India definetly is in no race with China to acquire worthless US IOU's I don't expect /hope India to buys anymore of this worthless junk either.

The problem is not what the US bond woth.

The problem is who will provide financial support to Obama's stimulus package. Since Obama is looking at china's pocket, he need to show some respect to china's words. Other countries, like Japan, have already fullfill their shares, China is the one of very few sources for this extra money unless india is gona buy 200bn US bond.

 

[mattster]

Yea, because theirs is a post-industrial economy. Ever heard of such a thing? They don't need to produce most low value goods because they pay the third world (including China) peanuts to produce it for them. And the rest of the world would rather work for peanuts than starve. Get my point?

If the US sneezes, the rest of the world may catch a cold, but China may well have to be hospitalized with pneumonia.

Bravo !! known_unknown - Its good to hear some common sense comments from someone who understands economics.

The disconnect with some Chinese guys like Badguy - is that they place a premium value on China's manufacturing capability.

China is indeed the manufacturing "king of the world" - but we are no longer living in the 1920 - 1970 era, where manufacturing prowess is the "defining attribute" for a strong economy.

I am not saying that manufacturing capability is nothing; it is still very valuable in terms of generating jobs and pumping the local economy. But manufacturing prowess no longer carries the weight that it did 50 years ago because of globalization.

Example: even though China manufactures all the Apple Iphones and Macs that are used all over the world, the real key differentiator is the intellectual property(IP) involved in the design/software of the Iphone and Macs which still done in the US. IP and design capability is today, what manufacturing was 50 years ago.

So while China's manufacturing infrastructure is indeed very impressive - it really is not an indicator of a super powerful economy because a vast majority of China's export output is still low tech, and the very few high tech items that China exports are primarily products that are fully designed in the US or Europe and with manufacturing done by China under the watchful eyes of the foreign MNCs.

As China's standard of living goes up, those huge factories will no longer be competitive in terms of cost and will shift to other places in Asia and Latin America.

In terms of original design in high tech, China still has yet to show any real potential. Take for instance the semiconductor industry in China - despite building record number of Fabs worth billions, and hundreds of Fabless Startups formed in China, they are still very few companies that have succeeded in creating any hit products. Many of the Fabs are running at a loss, which is covered up with Chinese government's infusion of funds.

There is very little that has come out of China in terms of original product thinking and design that has been a game changer in the worldwide arena. That is why some people still think that China's economic miracle is a bit of a paper tiger.

 

[badguy2000]

Bravo !! known_unknown - Its good to hear some common sense comments from someone who understands economics.

The disconnect with some Chinese guys like Badguy - is that they place a premium value on China's manufacturing capability.

China is indeed the manufacturing "king of the world" - but we are no longer living in the 1920 - 1970 era, where manufacturing prowess is the "defining attribute" for a strong economy.

I am not saying that manufacturing capability is nothing; it is still very valuable in terms of generating jobs and pumping the local economy. But manufacturing prowess no longer carries the weight that it did 50 years ago because of globalization.

Example: even though China manufactures all the Apple Iphones and Macs that are used all over the world, they real key differentiator is the intellectual property(IP) involved in the design/software of the Iphone and Macs which still done in the US. IP and design capability is today, what manufacturing was 50 years ago.

So while China's manufacturing infrastructure is indeed very impressive - it really is not an indicator of a super powerful economy because a vast majorityof China's export output is still low tech and the few high tech items that China exports are primarily products that are fully designed in the US or Europe and with manufacturing done by China under the watchful eyes of the foreign MNCs.

As China's standard of living goes up, those huge factories will no longer be competitive in terms of cost and will shift to other in Asia and Latin America.

In terms of original design in high tech, China still has yet to show any real potential. Take for instance the semiconductor industry in China - despite building record number of Fabs worth billions, and hundreds of Fabless Startups formed in China, they are still very few companies that have succeeded in creating and hit products. Many of the Fabs are running at a loss which is covered up with Chinese government's infusion of funds.

I am not saying that China's manufacturing success is not impressive - it is, but its just not as strong an indicator as it was in the past.

well, history just repeats itself. what you said is just a repeat of what UK's "experts" commented on USA one hundred years ago.

oh yeah.what USA did is just manufacturing low tech...all goods were all designed by Europeans. all high tech was manufactured in UK or German..UK's fleet still ruled the world.......UK could easily earned money with its hegemony of GBP and the bankers in London. if UK had wanted , UK could sent its manufacutre plants from USA to argetina anytime.... USA was just a manufactuing base for low-end cheaps......etc...

if we could earn money easily with our banking industry ,why not hand ove the low-tech industry to yankees?" that was just what UK thought...

BTW, just as people today like "CHina VS India,people at that time also like "USA VS Argetina" or "USA VS Brazil".....

but we all know what was to happpen later... when world wars broke out, UK found that the hegemony of GBP was just a illusion and what could win the war was not GBP,but the factory of USA.


it is always the knell of a superpower to have hand over its manufacturing capaicty. guy, manufactring ,agricultrue mining and construction are the real wealth-creating sections....service section is in fact just the lubricent of the wealth-creating sections....service section itself can not create real wealth. it just provide support to the wealth-creating sections and is the a way of wealth redistribution.

 

[mattster]

well, history just repeats itself. what you said is just a repeat of what UK's "experts" commented on USA one hundred years ago.

oh yeah.what USA did is just manufacturing low tech...all goods were all designed by Europeans. all high tech was manufactured in UK or German..UK's fleet still ruled the world.......UK could easily earned money with its hegemony of GBP and the bankers in London. if UK had wanted , UK could sent its manufacutre plants from USA to argetina anytime.... USA was just a manufactuing base for low-end cheaps......etc...

if we could earn money easily with our banking industry ,why not hand ove the low-tech industry to yankees?" that was just what UK thought...

BTW, just as people today like "CHina VS India,people at that time also like "USA VS Argetina" or "USA VS Brazil".....

but we all know what was to happpen later... when world wars broke out, UK found that the hegemony of GBP was just a illusion and what could win the war was not GBP,but the factory of USA.


it is always the knell of a superpower to have hand over its manufacturing capaicty.

Badyguy....I understand where you are coming from and with China holding $2 trillion dollars of US debt, I can understand why a lot of Chinese feel that its their century, but I disgree with your analogy.

The loss of Manufacturing is not the death knell of a major super-power.
The "UK analogy" does not really apply to the US.

Let me explain why, the UK is a very small country both in size and population less than 50 million. They were "punching seriously above the weight class" and still are to an extent. Regardless of what happened in WW2, the UK would eventually have been eclipsed by the US.

If you really want to compare the UK fall from power, then you should compare it to Japan's slow fall from economic superpower in the 70's and 80's.

The US is a country with a population that will be reaching about $400 million soon and still has a healthy birth rate. It is also far bigger than the UK and unlike China most of the US land is good livable climate agricultural land - it is not 1/2 desert like China. It does not have the gender demographic problem that China is facing, or the aging population problem of China and Japan. More importantly it does not have the huge environmental degradation issues that countries like China are facing in the near future.

The US still has some of the best universities in the world and one of the largest network of universities anywhere in the world. The next generation is all about intellectual power, not manufacturing power.

 

[LETHALFORCE]

The problem is not what the US bond woth.

The problem is who will provide financial support to Obama's stimulus package. Since Obama is looking at china's pocket, he need to show some respect to china's words. Other countries, like Japan, have already fullfill their shares, China is the one of very few sources for this extra money unless india is gona buy 200bn US bond.

the stimulus package will happen if it's needed at this point it dosen't look like it may or may not? if it does happen US will print money that China will have to buy, it is not an issue of China have a choice or much say in the matter they pegged themselves to the dollar and they will always be subservient to USA they are not a partner but more of a slave in the pegged relationship. Simple question why do China buy US treasury yielding .01% wwhen their stock market yields much more and giving annual returns beyond 10%? Because China has to buy US treasury/debt or USA will do buisness elsewhere, China has no leverage over USA no matter what they imagine they have.

 

[badguy2000]

Badyguy....I understand where you are coming from and with China holding $2 trillion dollars of US debt, I can understand why a lot of Chinese feel that its their century, but I disgree with your analog

in fact ,I don't want to stress on "2 trillion dollars" at all....
after all, 2 trillion is more like a digit than real wealth.

what I want to stress on is the capcity to create wealth....that is China's powerufl output of real wealth..that is food.steel.concrete..auto..ships.dresses..furnitures...daily comodities...

a wise great Chinese emperors once said:

"Gold/treasure is nothing ,because its can not keep your people from hunger as food does ,and can not keep your people away from cold as dresses do"

The loss of Manufacturing is not the death knell of a major super-power.
The "UK analogy" does not really apply to the US.

Let me explain why, the UK is a very small country both in size and population less than 50 million. They were "punching seriously above the weight class" and still are to an extent. Regardless of what happened in WW2, the UK would eventually have been eclipsed by the US.

If you really want to compare the UK fall from power, then you should compare it to Japan's slow fall from economic superpower in the 70's and 80's.

The US is a country with a population that will be reaching about $400 million soon and still has a healthy birth rate. It is also far bigger than the UK and unlike China most of the US land is good livable climate agricultural land - it is not 1/2 desert like China. It does not have the gender demographic problem that China is facing, or the aging population problem of China and Japan. More importantly it does not have the huge environmental degradation issues that countries like China are facing in the near future.

The US still has some of the best universities in the world and one of the largest network of universities anywhere in the world. The next generation is all about intellectual power, not manufacturing power.

USA is still something,just because it still has some high-end manufacturing like aircraft-manufacturing . they are the only G-string of USA.

If USA were to lose those G-string ,they would live on selling-resource ,just as Russia does now....


in fact, When China is climbing along the value chain ,USA now is lose its manufacturing one by one...

first texile and shoes..then ship-buildings..household appliance..then steel.. then eletronics..then auto...what is the next?

I am afraid that the next one would be aircraft-manufacturing...China will deprive USA of its only last G-string....

 

[mattster]

Badguy.......based on your logic - China will never lose its manufacturing base, it is only going to add to its manufacturing export power ??

OK, if that is what you believe, then "according to your theory" as the standard of living goes up in China, the cost of manufacturing will stay the same and hence China will not lose any of those factories that produce so much export wealth.

Also based on your logic - all the wealth creation generated by mega infrastructure like construction, high-speed rail, bridges, etc will continue forever.

Here is what you are missing - As soon as the cost of living in China goes up in the suburbs of the big cities where the factories are located, then the wages will have to go up also. This means that those factories will eventually move out for lower cost regions in Asia or latin america or simply stay in the US because there is no cost advantage towards offshoring.

Basically the same thing that happened to the US will start happening to China in 10 to 20 years. As a matter of fact it is already happening, many US companies are now choosing to build factories here in the US than offshore.

Also once you become a developed country, all your Mega construction projects will come to an end. There will be no more huge cities or railways or bridges or 8-lane highways to build, except for maintenace and repair.

China and India now have lots of mega projects to implement because their standard of living is really low compared the West. These projects create a lot of wealth and jobs, but the next stage is much much harder.

Both China and India have a huge problem with unemployment when they arrive at developed nation status, unless they can stimulate a huge local demand. The export market will not support their population.

This is a problem that the US does not have to deal with !!

 

[badguy2000]

Badguy.......based on your logic - China will never lose its manufacturing base, it is only going to add to its manufacturing export power ??

OK, if that is what you believe, then "according to your theory" as the standard of living goes up in China, the cost of manufacturing will stay the same and hence China will not lose any of those factories that produce so much export wealth.

Also based on your logic - all the wealth creation generated by mega infrastructure like construction, high-speed rail, bridges, etc will continue forever.

Here is what you are missing - As soon as the cost of living in China goes up in the suburbs of the big cities where the factories are located, then the wages will have to go up also. This means that those factories will eventually move out for lower cost regions in Asia or latin america or simply stay in the US because there is no cost advantage towards offshoring.

Basically the same thing that happened to the US will start happening to China in 10 to 20 years. As a matter of fact it is already happening, many US companies are now choosing to build factories here in the US than offshore.

Also once you become a developed country, all your Mega construction projects will come to an end. There will be no more huge cities or railways or bridges or 8-lane highways to build, except for maintenace and repair.

China and India now have lots of mega projects to implement because their standard of living is really low compared the West. These projects create a lot of wealth and jobs, but the next stage is much much harder.

Both China and India have a huge problem with unemployment when they arrive at developed nation status, unless they can stimulate a huge local demand. The export market will not support their population.

This is a problem that the US does not have to deal with !!

when the location of manufacturing-hub is concerned, cheap labour is not the only factor.
in fact, at least 4 factors should be taken into considerations:

1. the cost of labour. because cheap labour means the cheap labour cost .

2. the literacy of labour,because it decides the quality of labour. more illteratcy means less efficiency and more training cost.

3, the infrastructure,because it decides the logistics cost. the more developed the infrstructures is, the less the logistic cost is .
for example, tranporting cargos from Beijing to SHanghai must be cheaper than tranporting the same cargos from Delhi to Bangalor,because CHina has much better transport system.

4. industry-chains,because it decides the purchasecost. if manufacturing is in a country with broken industry chains, it means that you have to import most raw orunprocessed materials and components. it will increase the purchasecost much.


the following are the brief of main economyies.


China:
low/mid-income labour+high literacy+excellent infrastructure+full industry chains

South Asia(including India):
low-income labour+low literacy+poor infrastructure+ broken industry chains

industrialized countries (North America,west Europe and Japan.OZ,New Zealand and for asian tigers )
high-income labour+high litercay+excellent infrastructure+full industry chains;

East Europe and Ex Soviet area:
mid-income labour+high literacy+decent infrastructure+Full industry chain;

Latin America:
mid-income labour+decent literacy(maybe)+ordinary infastructure+broken industry chains.

most SouthEast Asian countries:
low/mid-income+ high literacy+ordinary infrastructure+broken industry chains

black-Africa:
low-income labour+low literacy+poor infrastructure+zero industry chains

most countries in MD:
mid-income labour+low literacy+ordinary infastructure+broken industry chains

OPEC oil-depending countries:
high-income+low literacy + good infrastructure+broken industry chains

so ,as you can see, CHina is the only country that has all 4 advantages:cheap labour,high literacy,excellent infrastructure and full industry chain at the same time.....that is why CHina is the paradise of manufacutring....

East Europe and Southeast Asia are in the second class coach. they both have one or two disadvantages to China : their infrastructures are not as good as CHina's . Besides, East Europe has more expensive labour and South East Asia has broken industry chains.

South Asia,Latin American and MD are in the third class Coach. They all have at least 3 disadvantages to CHina: low literacy,broken industry chains..worse infrastructures...

Black Africa is the place most unfit for manufacturing....I needn't say any more.

So, India has not prepared for manufacturing.. except low labour cost, India has no advantages to attract investment of manufacturing.....

If China can not hold its hegemnoy of manufacturing any more, the next manufacturing hub would be East Europe or Southeast Asia,instead of India.

To develope manufacturing, India has to change its disadvantages: poor infrastructure,low literacy and broken industry chains. it has to take decades to change any of the 3 ..

 

[no smoking]

the stimulus package will happen if it's needed at this point it dosen't look like it may or may not? if it does happen US will print money that China will have to buy, it is not an issue of China have a choice or much say in the matter they pegged themselves to the dollar and they will always be subservient to USA they are not a partner but more of a slave in the pegged relationship. Simple question why do China buy US treasury yielding .01% wwhen their stock market yields much more and giving annual returns beyond 10%? Because China has to buy US treasury/debt or USA will do buisness elsewhere, China has no leverage over USA no matter what they imagine they have.

Both china and usa are benefiting from this trading partnership. Neither side is doing this for charitable reason. Yes, China has no much leverage over USA and neither does USA.

Now we are talking about Obama's stimulus pack, which require the extra money from extra bill. If USA just print dollar to pay the bill, the dollar will be depreicated dramaticaly. That will damage USA's effort to recover from recession. And now, RMB is stuck to US dollar again, depreciate dollar wouldn't
turn the tide. So, Obama must look for money from foreign source. Obvously, china is the one with biggest spare amount.

 

[nitesh]

when the location of manufacturing-hub is concerned, cheap labour is not the only factor.
in fact, at least 4 factors should be taken into considerations:

1. the cost of labour. because cheap labour means the cheap labour cost .

2. the literacy of labour,because it decides the quality of labour. more illteratcy means less efficiency and more training cost.

3, the infrastructure,because it decides the logistics cost. the more developed the infrstructures is, the less the logistic cost is .
for example, tranporting cargos from Beijing to SHanghai must be cheaper than tranporting the same cargos from Delhi to Bangalor,because CHina has much better transport system.

4. industry-chains,because it decides the purchasecost. if manufacturing is in a country with broken industry chains, it means that you have to import most raw orunprocessed materials and components. it will increase the purchasecost much.


the following are the brief of main economyies.


China:
low/mid-income labour+high literacy+excellent infrastructure+full industry chains

South Asia(including India):
low-income labour+low literacy+poor infrastructure+ broken industry chains

industrialized countries (North America,west Europe and Japan.OZ,New Zealand and for asian tigers )
high-income labour+high litercay+excellent infrastructure+full industry chains;

East Europe and Ex Soviet area:
mid-income labour+high literacy+decent infrastructure+Full industry chain;

Latin America:
mid-income labour+decent literacy(maybe)+ordinary infastructure+broken industry chains.

most SouthEast Asian countries:
low/mid-income+ high literacy+ordinary infrastructure+broken industry chains

black-Africa:
low-income labour+low literacy+poor infrastructure+zero industry chains

most countries in MD:
mid-income labour+low literacy+ordinary infastructure+broken industry chains

OPEC oil-depending countries:
high-income+low literacy + good infrastructure+broken industry chains

so ,as you can see, CHina is the only country that has all 4 good factors :cheap labour,high literacy,excellent infrastructure and full industry chain at the same time.....that is why CHina is the paradise of manufacutring....

East Europe , Latin America and Southeast Asia l have only 2 or 3 of the 4 factors .

what India has only one: "low-income labour";

what black Africa has is zero.

To develope manufacturing, India has to change 3 negatives conditions : poor infrastructure,low literacy and broken industry chains. it has to take decades to change any of the 3 ..

I still don't know what to make out of all this nonsense blabbering how does it explains India's continuous growth in EVERY sphere.

 

[ZOOM]

Both china and usa are benefiting from this trading partnership. Neither side is doing this for charitable reason. Yes, China has no much leverage over USA and neither does USA.

Now we are talking about Obama's stimulus pack, which require the extra money from extra bill. If USA just print dollar to pay the bill, the dollar will be depreicated dramaticaly. That will damage USA's effort to recover from recession. And now, RMB is stuck to US dollar again, depreciate dollar wouldn't
turn the tide. So, Obama must look for money from foreign source. Obvously, china is the one with biggest spare amount.

May I ask you, How much spare amt does Chinese Federal Bank must be possessing to draw it over towards US just to fulfill their unfullfilled quench?

 

[ZOOM]

when the location of manufacturing-hub is concerned, cheap labour is not the only factor.
in fact, at least 4 factors should be taken into considerations:

1. the cost of labour. because cheap labour means the cheap labour cost .

2. the literacy of labour,because it decides the quality of labour. more illteratcy means less efficiency and more training cost.

3, the infrastructure,because it decides the logistics cost. the more developed the infrstructures is, the less the logistic cost is .
for example, tranporting cargos from Beijing to SHanghai must be cheaper than tranporting the same cargos from Delhi to Bangalor,because CHina has much better transport system.

4. industry-chains,because it decides the purchasecost. if manufacturing is in a country with broken industry chains, it means that you have to import most raw orunprocessed materials and components. it will increase the purchasecost much.


the following are the brief of main economyies.


China:
low/mid-income labour+high literacy+excellent infrastructure+full industry chains

South Asia(including India):
low-income labour+low literacy+poor infrastructure+ broken industry chains

industrialized countries (North America,west Europe and Japan.OZ,New Zealand and for asian tigers )
high-income labour+high litercay+excellent infrastructure+full industry chains;

East Europe and Ex Soviet area:
mid-income labour+high literacy+decent infrastructure+Full industry chain;

Latin America:
mid-income labour+decent literacy(maybe)+ordinary infastructure+broken industry chains.

most SouthEast Asian countries:
low/mid-income+ high literacy+ordinary infrastructure+broken industry chains

black-Africa:
low-income labour+low literacy+poor infrastructure+zero industry chains

most countries in MD:
mid-income labour+low literacy+ordinary infastructure+broken industry chains

OPEC oil-depending countries:
high-income+low literacy + good infrastructure+broken industry chains

so ,as you can see, CHina is the only country that has all 4 good factors :cheap labour,high literacy,excellent infrastructure and full industry chain at the same time.....that is why CHina is the paradise of manufacutring....

East Europe , Latin America and Southeast Asia l have only 2 or 3 of the 4 factors .

what India has only one: "low-income labour";

what black Africa has is zero.

To develope manufacturing, India has to change 3 negatives conditions : poor infrastructure,low literacy and broken industry chains. it has to take decades to change any of the 3 ..

Can some Chinese members themselves show some mercy and help me understand the above in plain and simple Chinese language? Since I would rather opt to read Chinese language as I cannot tolerate such a nasty masscare of English language.

 

[amitkriit]

Obama skips Tibet, pushes for more freedom


BEIJING: US President Barack Obama’s question-answer session with students in Shanghai preceded a good amount of back-door haggling with China on what questions will be put to him and how it will be shown on local television. Obama finally spoke his mind on internet freedom, which China restricts, but skipped the controversial Tibet issue.

Focusing on the growing political and trade relations between the two giants, he said, “More is to be gained when great powers cooperate than when they collide.”

The first black US president was expected to make use of his meeting with Shanghai students to directly address the Chinese public on issues considered sensitive by the local government. Obama did touch on the need to give citizens more freedom, but most of the meeting had the look and feel of a pre-scripted talk show.

"These freedoms of expression and worship, of access to information and political participation, we believe are universal rights, they should be available to all people including ethnic and religious minorities," he told the assembled students at the town hall in Shanghai.

"I'm a big supporter of not restricting internet use," he said. "The more open we are, the more we can communicate and it also draws the world together," he said.

The session was not aired nationally by China Central Television, which had shown live meetings with students in China by former US presidents like George Bush and Bill Clinton. Chinese authorities allowed its telecast in Shanghai city while making no attempt to curb the broadcast from the White House website.

The official Xinhua news agency distributed Obama’s comments on the internet. The CCTV is expected to release an edited version of the meeting later today.

There are enough reasons for Obama to avoid ruffling Chinese feathers by talking about the Dalai Lama or human rights issues. His administration depends heavily on China’s ability to support its economic recovery package by buying and holding vast quantities of US treasury bonds as well as the two-way trade, which helps boost US business.

During the session, Obama pointed out that US-China trade now stood at $400 billion compared to just a few billion dollars when Washington established ties with the People's Republic of China in 1979.

"This trade could create even more jobs on both sides of the Pacific ... as demands become more balanced it can lead to even more prosperity," Obama said.

 

[ppgj]

The problem is who will provide financial support to Obama's stimulus package. Since Obama is looking at china's pocket, he need to show some respect to china's words.

agree with you on this. but don't be fooled. once their economy recovers they will sing differently.

Other countries, like Japan, have already fullfill their shares,

they are becoming wiser.

China is the one of very few sources for this extra money

right. that is why they will flatter you with words.

unless india is gona buy 200bn US bond.

india wont. they are diversifying their reserves. for ex. they bought gold from imf.

 

[badguy2000]

OK, if that is what you believe, then "according to your theory" as the standard of living goes up in China, the cost of manufacturing will stay the same and hence China will not lose any of those factories that produce so much export wealth.

Also based on your logic - all the wealth creation generated by mega infrastructure like construction, high-speed rail, bridges, etc will continue forever.

Here is what you are missing - As soon as the cost of living in China goes up in the suburbs of the big cities where the factories are located, then the wages will have to go up also. This means that those factories will eventually move out for lower cost regions in Asia or latin america or simply stay in the US because there is no cost advantage towards offshoring.

Basically the same thing that happened to the US will start happening to China in 10 to 20 years. As a matter of fact it is already happening, many US companies are now choosing to build factories here in the US than offshore.

Also once you become a developed country, all your Mega construction projects will come to an end. There will be no more huge cities or railways or bridges or 8-lane highways to build, except for maintenace and repair.

China and India now have lots of mega projects to implement because their standard of living is really low compared the West. These projects create a lot of wealth and jobs, but the next stage is much much harder.

Both China and India have a huge problem with unemployment when they arrive at developed nation status, unless they can stimulate a huge local demand. The export market will not support their population.

This is a problem that the US does not have to deal with !!

well. Once CHinese labour cost gos up as you said and finish all necessary infrastructures...then CHina will have finished its industrialization and already become a developed country...

at that time with its huge population advantage, CHina will can easily deprive USA of its global hegemony....

 

[badguy2000]

Obama is going to CHina with a begging bowl...

http://www.nytimes.com/2009/11/15/world/asia/15china.html