China back on high growth track

[Grudge]

Told you so. Told you that they would recover the fastest. It's not a coincidence.



7.9% growth from April to June. The manufacturing section has kept growing.



http://news.bbc.co.uk/2/hi/business/8230982.stm

[Mesarthim]

Boeing is getting ready to move there.

[methodrone]

Asia, numbers + work discipline over the centuries = Win in the long run.

[Mesarthim]

*except china and russia where even under the best intentions the products produced are done so on the lowest level of cost; making them cheap, unreliable, easily breakable, and sometimes dangerous. thanks china!

[Holocaust]

Wal-Mart

[zim]

[quote name="Lerzeig Redek"]Wal-Mart [/quote]



I worked at Wal-Mart for almost a year. major

[baron von blondle]

[quote name="ManOfSteel"]

http://news.bbc.co.uk/2/hi/business/8230982.stm[/quote]



Corrupt Imperialist news source.

[Teignub]

BBC = Big Brother Company

[beandorkio]

Holy fucking Oracle of Delphi, what an amazing prediction.



Seriously, did anyone on the board doubt that China would return to high growth? - for those who gave a shit?



I predict that we shall all continue breathing air tomorrow, and that the sun will rise over the first 6 hours of the day BEAT THAT splendid mate of mine

[baron von blondle]

[quote name="beandorkio"]Holy fucking Oracle of Delphi, what an amazing prediction.



Seriously, did anyone on the board doubt that China would return to high growth? - for those who gave a shit?



I predict that we shall all continue breathing air tomorrow, and that the sun will rise over the first 6 hours of the day BEAT THAT splendid mate of mine[/quote]



I just invoked Ragnarok with a blazing viking ritual so I wouldn't be so sure Sammy boy!

[Haunty]

*begins filling up water balloons*

[Abzu]

geezus I need a tree to go hide in.

[Grudge]

[quote name="beandorkio"]Holy fucking Oracle of Delphi, what an amazing prediction.



Seriously, did anyone on the board doubt that China would return to high growth? - for those who gave a shit?



I predict that we shall all continue breathing air tomorrow, and that the sun will rise over the first 6 hours of the day BEAT THAT splendid mate of mine[/quote]



Please also elaborate on the factors that enabled China to recover quickly from the recession. For your information, there are some economists, some people who believe that China will not recover quickly and will instead suffer a great deal from this recession. So, I am curious to know your analysis of the factors which enabled this growth level.

[beandorkio]

OK then, wise ass.



First, there may have been a handful of commentators saying China's growth would be reversed. But the majority I've read have all been optimistic about growth through the recession (australian newspapers - the country relies on China's demand for oz resources, so their progress is very closely followed).



[quote name="ManOfSteel"] For your information, there are some economists, some people who believe that China will not recover quickly and will instead suffer a great deal from this recession. So, I am curious to know your analysis of the factors which enabled this growth level.[/quote]



Hmmph. Probably the same economists who didn't see the recent meltdown.



China's advantages, leading to its growth level -



1. cheap labour but with first-world manufacturing ability. China can't be beaten on manufacturing at the moment

2. cheap energy. While the rest of the world chooses a recession to dump fossil fuels, China gives not a fuck for specious western CO2 global warming theories. It runs many coal stations (cheapest source of electricity), and is building new ones constantly. There's no greenpeace nose picks protesting against nuclear power either. They do not tax their energy industries with green taxes.

3. As Rio Tinto would tell you, they've getting better than ever with their lines of supply of materials

4. A massive middle class with a spending capacity stabilises the country through domestic consumption

5. No super expensive wars to fight, like Afghanistan, Iraq, etc.

6. All of the above making the place attractive for foreign investment...whatever investment is allowed, of course

7. Their investment in the rest of the world seems to come mainly in the form of buying raw materials/companies who trade in raw materials, and government bonds (funding government debts). These assets have fared a lot better during the downturn than others, especially as they tend to shuttle raw goods straight into secondary and tertiary industries.

8. Lastly, for now, the ever-present rumour that they manipulate their currency. Actually, anyone could come straight out with the accusation and nothing would happen. China now owns too much foreign debt - especially after all the stimulus packages - for anyone to meaningfully push this accusation.



This financial crisis has exposed every government, company, and individual relying upon debt-fuelled growth. Simply put, China's massive savings and growth through manufacturing exports means that they'd always weather the crisis well. And thank fuck, because their growth and demand for raw materials has kept Australia in the clear too.



The better question would be, explain how China's growth would be reversed. THAT's a tricky question.