China puts emphasis on growth, mean anything?

Discussion in 'The Political/Current Events Coffee House' started by General Mosh, May 22, 2012.

  1. General Mosh Citystates Founder!

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  2. 0bserver92 Grand King of Moderation

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  3. Chives Newest Member

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    Objectively speaking, I think they could benefit the most in the long term by focusing on the development of infrastructure in the interior and an elongated deflationary policy, rather than inflating their natural economic growth.
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  4. General Mosh Citystates Founder!

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    I agree, I think this is a good step. Of course, I wish they would be more environmentally friendly at the same time, because they are really wrecking the East Asia area.
  5. Chives Newest Member

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    Again, speaking objectively, that could hardly qualify as a secondary concern to the Chinese government at this time.
    While they could, without much difficulty, enact measures to reduce pollution and such in cities, there is only so much that can be expected of a nation of such volume.
    Rather, public health, social modernization, infrastructure development, and economic stabilization are more prominent concerns than environmental intervention.
    They're going through a similar phase that Europe and the US went through about 100 years ago, the difference is, they have the experience of Europe and the US to learn from, as well as much better means of implementing the changes. The only major difficulty for the Chinese government is the unparalleled volume they must work with.
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  6. Viking Socrates I am Mad Scientist

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    I honestly don't expect the Chinese growth to last very long.
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  7. VladimirGLenin Well-Known Member

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    Just waiting for growth to sputter and the stock markets to panic..
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  8. LampRevolt Well-Known Member

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    Well their government has money out the ass last I checked so I see it as a good move for the Chinese. Might as well utilize your resources, better infrastructure is never a bad thing. While I am not particularily well educated on the Chinese economy I figure the people making this call are .
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  9. General Mosh Citystates Founder!

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    I have to agree with Lamp, I think its a good thing.

    And I agree with you too Chives, its just a pity to see them tear apart their country while they're doing it.
  10. Cover Well-Known Member

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    God i love it when nations invest in infrastructure
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  11. slydessertfox Total War Branch Head

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    I agree with Viking, I don't think their growth is going to last very long. Also, government corruption isn't helping much.
  12. CrazyManiac Well-Known Member

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    China will grow larger...
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  13. slydessertfox Total War Branch Head

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    And then fizzle out.
  14. battleearl Well-Known Member

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    How long has their economy been growing like this? For the past 30 years or something. I don't think they can grow like this for very much longer.
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  15. Cover Well-Known Member

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    Why not?
  16. Warburg Well-Known Member

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    The Communist Party in China is turning away from the progressive economic reforms that have led them to so much success in the past years, which were largely implemented by Deng Xiaoping in the 1970’s. The economy is being “renationalized,” and the regime is restricting business opportunities for foreign investors with new laws that are favoring national state enterprises at the expense of foreign companies.This will lead to a decrease in foreign investments, and very likely also a reversal of some of the outsourcing we have seen in previous years.
    I don't really want to go into detail so here's a short summary. The Chinese demographics have been favorable over the last 30 years, but the effects of the one-child policy has been making its mark on the Chinese population, and the Chinese working force will be shrinking continuously for many years to come while the persons on pension will only increase. This will inevitably lead to higher wages for the average Chinese worker because of the lack of workers, will make them uncompetitive in the long run.For more see link:
    http://ajw.asahi.com/article/globe/economy/AJ2011092515286
  17. Chives Newest Member

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    You seem to forget the undeniable effect of shear volume.
    I don't have the knowledge to argue this decline in workforce, you forget that even if their workforce declines, the only nation that would threaten them in numbers would be India, but a large portion of their population lives beyond modernity.
  18. Warburg Well-Known Member

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    While the workforce will still be huge, the dramatic increase in people over 65 years will put a strain on state finances, and since we will see considerably less children growing up and be available for work and taxation. This has already happened in many western countries with devastating effects in some cases, and the artificial restriction of the one-child policy will only make this more noticeable and sudden in China.(but it would still be a process over several years) The population of China will decrease over the next century even if they repeal the one-child policy now.
    [IMG]
    http://www.economist.com/blogs/dail...policy?fsrc=scn/tw/te/dc/obrotherwhereartthou
    Another issue with the "endless workforce" is that the Chinese are not the cheapest manufacturers anymore. The cost of living(housing, food, clothing etc.) has increased significantly for the average Chinese worker-family, and this is reflected, or will soon be reflected, in increasing wages. The Communist Party has so far managed to keep a lid on this unemployment by employing or forcing Chinese businesses to employ people to do essentially worthless tasks or tasks easily fulfilled by a single person instead of a group.
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  19. slydessertfox Total War Branch Head

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    ALso, there's always a bust in capitalism.
  20. Viking Socrates I am Mad Scientist

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    Lol boom and bust.

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