Wednesday, October 12, 2005

Economist|China's Growth:
"As China forecasts another year of GDP growth above 9% and America’s treasury secretary tries again to persuade Beijing to revalue the yuan, China's government does seem to be preparing to change its approach to economic growth. However, its main concern is not American policymakers but China's poor."

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  1. As I learned in AGEC 450 (World something or another). China is a pusher and mover in the world economy. They currently have fairly closed borders (at least for farm inports) and would realy move market if they were to open.

  2. No kidding, the key to the ongoing argument, as the article specifies, is the fact that the China economic expansion is export-driven. The difficulty is that their refusal to change is begging (at least from a market viewpoint) for a protectionist response. However, we like cheap stuff too much (and what we like is a big controlling factor in who we vote for). China's remarkable ability to produce its way (or as Dan Schafer would say, "muscle through it") through the market woes that could occur. It's really remarkable when you consider how productivity would have soared with a good dose of free-market policies yet.

  3. Yup, I think rice consumption would really fall if 1 billion people tasted midwest corn.

    Maybe not super suddenly, but if our corn was more avaible they would eat it.

  4. Looks like you've got a goal to shoot for, then.