China's Economy Grows at the Expense of the World
Robert J. Samuelson, The Washington Post | January 25, 2010
China’s foreign exchange reserves rose to $2.4 trillion in 2009, two-thirds of which are held in US dollars. ++ The dollar will likely not be dumped by China due to the probability of another economic collapse, which would then decrease Chinese exports. ++ The superpower is using its surplus to further its local and global political agenda by investing in raw materials and imported technologies, and spending on foreign aid and international loans. ++ China’s reserves highlight the dangers of uneven economic growth, undermining open trade policies.
Sun, Jan 31st 2010, 18:11
Ann H. Sontz
Housing and stock investments are approaching bubble-like proportions. Though only 2%-3% of the Chinese population is directly affected,ripple-effects will probably move throughout the economy, therefore raising the visibility of the already existent wealth gap between China's majority agricultural population in the countryside and its urban residents.
The countryside itself has been devasted by flooding, brought about by the still incomplete construction of major dams, and by a strenuous rise in the number of displaced farmers, who are now both jobless and landless, and who have moved to ujrban areas in search of work. That this work is far from being provided is evident in the resultant rise of an at least 250 million member migrating labor force that moves from area to area, and from factory to factory, in search of employment.
These domestic considerations are compounded by demographic trends:a growingly older population with few social supports, and a failure of a one-child policy to provide the necessary population that might offer such supports that are family, not governmentally-based.
China's rise will undoubtedly continue in an economic sense. But its domestic scene seems increasingly disconnected from economic analyses. Just how Chinese politicians will connect with their own country's historic need for "social harmony" should be factored into future political and military landscapes. We may need to take an increasingly closer look at the changing status of well-known politicians, as well as to lesser-known military, who until now have remained background figures.
China's domestic tranquility has always been a major concern. The inclusion of entrepreneurs in the "three represents' of the Chinese people and politics was an historic political and economic move that changed the country's direction.Political supporters continue on, but analysts have noted that political disagreements about emphasis and balance have already emerged.