Is China becoming the locomotive of the developing world?

COLTRANE · (#1 (**permalink**))

I am not sure of the trade imbalance with the US is with China, but my first thought was That is a coincidence that the US trade balance deficit to China is $158 bn, where does the $100 bn extra go. But if you look around the world a lot of countries seem to have really got their act together and making real progress on the development front, for instance Brazil, Venezuela and Iran.

Why, they have all become big trading partners with China. In terms of trade China is earning huge ammounts of US cash and then spreading it around the world. It cannot last for too much longer, but the last few years of high world annual growth may be down to the spreading of this wealth.

What do you think?

101stAirborne · (#2 (**permalink**))

But in reality it is being ploughed back in the Chinese weapons' industry in their bid for world hegemony.

impactplayer · (#3 (**permalink**))

101stAirborne wrote:

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But in reality it is being ploughed back in the Chinese weapons' industry in their bid for world hegemony.

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You forgot they also use that extra money to takeover American companies such as Unocal and IBM..The money mainly benefit the Chinese economy not anyone else.

COLTRANE · (#4 (**permalink**))

and dont forget Yahoo bought40% the biggest chinese search engine:Alibababa

COLTRANE · (#5 (**permalink**))

impactplayer wrote:

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101stAirborne wrote:

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But in reality it is being ploughed back in the Chinese weapons' industry in their bid for world hegemony.

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You forgot they also use that extra money to takeover American companies such as Unocal and IBM..The money mainly benefit the Chinese economy not anyone else.

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Nothing wrong with anyone investing in their weapon's industry especially when on the other end of the globe there are some cowboys in the west wing

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anyways back 2 thread read belwo link:

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http://www.washingtonpost.com/wp-dyn/content/article/2005/06/26/AR2005062601033.html

101stAirborne · (#6 (**permalink**))

COLTRANE wrote:

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impactplayer wrote:

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101stAirborne wrote:

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But in reality it is being ploughed back in the Chinese weapons' industry in their bid for world hegemony.

Quote:

You forgot they also use that extra money to takeover American companies such as Unocal and IBM..The money mainly benefit the Chinese economy not anyone else.

__________________________________________________ _________________

Quote:

Nothing wrong with anyone investing in their weapon's industry especially when on the other end of the globe there are some cowboys in the west wing

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anyways back 2 thread read belwo link:

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http://www.washingtonpost.com/wp-dyn/content/article/2005/06/26/AR2005062601033.html

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There is no "extra" money, go back and study on international economics. They did not buy Unocal, which was failing anyway. They also bought a red herring in IBM PC which were have long been surpassed by Dell, Compaq, Apple and Hewlett-Packard. The moeny they paid on this "deal" only financed IBM Super Computer Business, which can now beused by the US DoD and DoE to better counter Chinese arsenall of absconded technolgy. "China is, after all, a communist dictatorship, and we shouldn't assume its intentions are friendly." (Quote from the link you posted)

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If they want want new arms race, whcih is apparently what you want, they shall get it, but the world at large is the loser.