Monday, October 15, 2007

China's economic growth

One predetermined element that is certain to be a part of our future is China's dynamic economy. Economists have speculated that by 2050, China's economic growth will surpass that of the U.S.

This is the new economy. Globalization! Lowest bidder takes it! Supply-side economics. It's what they taught you in sophomore year Macro Economics. In this new economy China does the majority of the manufacturing of 'American' goods. More and more American companies are married to this concept of doing business. We must get used to the concept of 'Our Beijing office' or 'Mei in out Shanghai Bureau.'

Crititcal uncertainty(ies)?

Like the U.S., when China's economy engulfs everyone else's, it will want to further expand. Will this lead to certain hostile takeover of countries? In 50 years, will there be enough resources to fuel this mammoth economy? Will the owner of these resources play nicely and share? Or will China flexed her muscle and use force (think U.S-Iraq; oil)?

Other thoughts... With China's population at 1.4 billion (2007) will the U.S. and the rest of the world slowly steer their economies to feed China? What direction will the U.S. turn?

Can the U.S. afford an armed conflict with China? Remember, it's a global economy, so going to war with China is like going to war with Nike, Apple, and what-ever-make-your-cellphone company is....

These are just a few thoughts.

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