Friday, October 31, 2008
China's contaiminated milk scandal just took another major blow, as Chinese officials broaden their scope of investigation. The chemical melamine that was once thought of as just affecting baby's milk formula may have been added to other areas also. The New York Times reports "that that an industrial chemical called melamine had leached into the nation’s animal feed supplies." New evidence has been found that suggests that this chemicals being passed on to the consumers from the animal and causing the consumer to become ill. This discovery has been insult to injury on Chinese agricultural products as different countries are beinging examine Chinese agricultural products for this chemical. The dairy products imparticlar have been affected by melamine, and China's dairy exports have taken a hit because of this. This scandal is resulting in a major black eye for China, after they had gained much respect for their perfomance in the Olympics.
Environmental Obstacles to China's Economic Growth
China’s astounding advance into the realm of the global economic superpowers over the past decades has had immeasurably far-reaching implications for China’s own citizens and for the rest of the world. And their sustained economic vibrancy continues to shape numerous facets of today’s global society. In only thirty years, China has witnessed a tenfold increase in its GDP. According to the statistics of the CIA World Factbook, the IMF and World Bank, China is ranked number two in the world in terms of GDP on the basis of purchasing power parity. Between the years of 2003 and 2004, the value of China’s industrial enterprises, which had already been growing at steadily increasing intervals in previous years, was enlarged by an impressive 16.7 percent. (AllCountries.Org) But China’s status as an economic powerhouse has come at great cost. Climbing alongside the economic growth rates are water scarcity and pollution, the degradation of air quality, and the demand for non-renewable, environmentally-antagonistic resources. Despite, and maybe due to, China’s rapid economic ascent, the elements most vital to ensuring economic sustainability and growth may have been lost. If the Chinese government and people do not address the rampant environmental problems plaguing the country, and ensure the efficient implementation of solutions, their economic progress will stagnate, if not decline.
Monday, October 27, 2008
China stays quiet amid talk of new financial order
Beijing has not shown interest in calling for a brand new monetary regime to emerge in the midst of the global financial crisis. There are some economists, intellectuals and politicians openly calling for a new world order in terms of finances. While Beijing has been critical of Washington as of late for irresponsible stewardship of the dollar and failing to protect against market volatility. The reason Beijing has been critical is because the status of America will effect the stability China seeks to maintain.
China holds large amounts of U.S. dollars in reserve and does not intend on making substantial changes to their financial system. The Chinese yuan is still not convertible for purely financial transactions, something Thailand wished were the case so that the yuan could beocme the anchor currency in Asia. Right now, there are those who believe China's economy is not yet strong enough for such a move. It could take 10 to 15 years for China to remove its capital controls.
http://uk.reuters.com/article/UKNews1/idUKTRE49Q0WT20081027?pageNumber=3&virtualBrandonChannel=10174
Friday, October 24, 2008
Land Reform Reemergence
After years of waiting and delays, China has announced that they will enact a major land reform policy, that will undoubtedly help citizens out towards the rural areas of China. The New York Times reports that "Under the current system, farmers are assigned small plots of land. Under the new policy, the government will establish markets where farmers can subcontract, lease, exchange, or swap land-use rights or join cooperatives". This policy will enable farmers to become more independent with their land, and can now pursue different avenues as far as crop rotation and more fertile land, that will hopefully increase the output of these farms. The Chinese also hope to reduce the disparity between the rich and the poor with this reform, by allowing farmings to gain more land, which in turn could produce more capital for them. This land reform marks the reemergence of Deng's land reform policies 30 years ago. The outcome of this land reform is uncertain as of now. While farmers will get more freedom in choosing what to do with their land, and how much land they can acquire, there is also the question of opening the door to the free market economy. In this sense some shrewd farmers could end up with the majority of the land, leaving some farmers worse off then before. The fate of this land reform policy is just still unknown, and only time will tell if it was a good policy decision or a bad one.
Wednesday, October 22, 2008
China and the World Financial Crisis
I recently read an article in the L.A. Times, detailing China's position during this world financial crisis that has hit the United States and many other world economic powers hard. China has seen it's high powered economy slow down a little. It is a direct result from the financial crisis that has plauged the markets in the last month. The result is that the Chinese economy is slowing down do to many significant businesses that are counting on the Chinese to help with the crisis. Much of the money the United States has borrowed from the $700 Billion dollar bailout of many Wall Street businesses is money from China. However, could this lending money out from China create problems for the Chinese in the future? The article stated that China saw a slow growth in the thrid fiscal quarter in 2008, the lowest growth it had seen in 5 years. It projects that in 2009 that China's growth will fall to 7%, which would still keep China on top of global standards when it comes to economic growth, but it is far from the pervious annual growth rate of 10% a year. Will this economic crisis present an opportunity for China to rise above many of the from economic powers? I personally think that China is in a good position to assume the role of global hegemon in economics, because of the outcomes that have come from this global financial crisis.
POLS 365- 10/22-3
Although the Olympic games finished in August, there is continued discussion about Beijing. They built these massive structures and have so far, decided not to tear them down. The problem is, China spent a RIDICULOUS amount of money to build all these magnificent structures, but with the state of the world economy, it's hard to keep up with the cost of these structures. Beijing in continually trying to host different world events to help pay for the cost of these structures. While I agree that the 2008 Olympic games buildings were amazing, were they worth the debt it cost to build them?
POLS 365 10/22-2
We are only two weeks away from one of the biggest presdential elections in the history of the United States. This is actually the first presedential election that I have been able to vote in. Obama or McCain, the question the entire nation is asking. On a larger scale, what does the world think of the two presedential candidates? I know China a leader, but how is this leader chosen. Is it similar to the U.S. elections, does the nation get to vote on their new leader? How long is the Chinese leader in office?
POLS 365 10/22
I continually disturbed by the state of the economy in the U.S., once again yesterday, the stock market plummeted leading the stock market experts to believe that we have not hit the worst of the plummets so far. I am greatly concerned because I have already started my 401K and I don't want to lose my money, just like the rest of the nation. But thats something I have realized more and more, we are not just affecting the rest of our nation, we are affecting the world with the state of our economy. We are a global economy. I don't think we are capable of having another depression because we are a global economy more than ever. I have read in the news how China and the rest of the world are being affected by our economy. It's actually sad, is China going to help? Is any other nation, or is the U.S. on its own to figure this out?
Tuesday, October 21, 2008
In China, report without orders
The Summer Olympic Games have pushed China to become a more open society, with Beijing announced an indefinite extension of greater freedom for foreign journalists. However, this press freedom does not extend to the Tibet Autonomous Region.
This move suggests an increase in confidence on part of the Chinese Communist Party. Perhaps the ruling members are less afraid of harsh Western criticisms. After the Tiananmen Square incident, foreign journalists had to apply for permission to travel and conduct interviews on a case-by-case basis. The Summer Games lifted such restrictions.
China sees that by gradually opening up, its image and portrayal by other nations is becoming more positive.
http://www.atimes.com/atimes/China/JJ22Ad01.html
This move suggests an increase in confidence on part of the Chinese Communist Party. Perhaps the ruling members are less afraid of harsh Western criticisms. After the Tiananmen Square incident, foreign journalists had to apply for permission to travel and conduct interviews on a case-by-case basis. The Summer Games lifted such restrictions.
China sees that by gradually opening up, its image and portrayal by other nations is becoming more positive.
http://www.atimes.com/atimes/China/JJ22Ad01.html
Friday, October 17, 2008
China's Tainted Milk Scandal Continues
The troubling effects of China's tainted milk scandal have reemereged as there have been more actions taken to reassure consumers that Chinese milk formula is safe for purchase. This tainted milk has started to effect Chinese exports as countries are weary of Chinese dairy products. The New York Time reports that Hong Kong has reported signs of melamine in several choclate bars that have reportedly came from a Chinese company. This has scared countries even more from purchasing anything related to dairy from China. Iran has even banned any dairy product from China to be imported within their country. With the global outcry for China to keep a closer eye on there domestic made products, Chinese officials have recalled all milk products to undergo testing for melamine. Hopefully once China examines these milk products and declare them safe for consumption, the Chinese economy can start recovering from such an embarrsing moment. One thing is for sure it will take some time for domestic and foreign consumers to regain their trust in the Chinese dairy companies after such a tragic event, that is covered with corruption.
The global impact of China, in an unexpected sphere
During some time spent with a former teacher over fall break, I learned of an occurrence that had somehow escaped my radar when it actually happened almost two years ago. Some of my previous blogs have been about how China's decisions have global impact. Many other people in the world talk about this as well, and it is usually in reference to economics, politics or the environment. The event I will discuss could be classified under the topic of "environment," but that classification alone is not a sufficient definition.
On January 17, 2007, China employed an anti-satellite (ASAT) device to destroy one of their own weather satellites. The manner in which they did so has been criticized by many groups. The satellite was shot from a range of approximately 860 kilometers, and it launched at a speed of about eight kilometers per second in a direction opposite that of the satellite. Because of this relatively great distance as compared to other instances of countries shooting down their satellites, and because of the fact that it was hit by the ASAT head on, the destruction of this satellite has caused a lot of problems. And it is likely that we have not yet experienced the majority of these.
A handful of images have been created that pinpoint the locations of all the trackable debris from the weather satellite's explosion. The amount of debris is uncharacteristically high because of China's seeming miscalculation or lack of care. This incident elicited adamant responses from several other governments worried about how the debris would affect their own space programs. This is a legitimate concern because this debris could cause damage to satellites already in orbit, or it could interfere with new satellites or other vessels being put into space. In my opinion, questioning and maybe even challenging China's right to get rid of a satellite in such a haphazard manner is justified. But this also appears to be a realm in which vague and negligible legislation exists. Perhaps, as space programs continue to expand and space debris continues to accumulate, a more clear body of protocol governing space programs should be formulated.
On January 17, 2007, China employed an anti-satellite (ASAT) device to destroy one of their own weather satellites. The manner in which they did so has been criticized by many groups. The satellite was shot from a range of approximately 860 kilometers, and it launched at a speed of about eight kilometers per second in a direction opposite that of the satellite. Because of this relatively great distance as compared to other instances of countries shooting down their satellites, and because of the fact that it was hit by the ASAT head on, the destruction of this satellite has caused a lot of problems. And it is likely that we have not yet experienced the majority of these.
A handful of images have been created that pinpoint the locations of all the trackable debris from the weather satellite's explosion. The amount of debris is uncharacteristically high because of China's seeming miscalculation or lack of care. This incident elicited adamant responses from several other governments worried about how the debris would affect their own space programs. This is a legitimate concern because this debris could cause damage to satellites already in orbit, or it could interfere with new satellites or other vessels being put into space. In my opinion, questioning and maybe even challenging China's right to get rid of a satellite in such a haphazard manner is justified. But this also appears to be a realm in which vague and negligible legislation exists. Perhaps, as space programs continue to expand and space debris continues to accumulate, a more clear body of protocol governing space programs should be formulated.
Thursday, October 16, 2008
How best China can fend off financial risks
The Chinese government is currently facing financial trouble as the U.S. faces recession and the Chinese government currently holds large amounts of U.S. dollars in reserve which are declining in value. One suggestion is for China to shift its foreign reserve investment to Europe. A potential problem with this strategy is selecting which markets to invest in and whether Europe will also suffer a major decline from the current political climate.
The author suggests China should invest in Hong Kong's H-share market. The rationale is after the current decline, these stocks can face no further decline. In addition, these stocks are now available at a decent price. If the government were to invest in the H-share market, it could boast the national economy and raise investor's confidence once again. This investment in the future of the country's economic development seems viable because under the current monitoring system in Hong Kong, speculation should not be a problem.
http://www.chinadaily.com.cn/bizchina/2008-10/16/content_7113263.htm
The author suggests China should invest in Hong Kong's H-share market. The rationale is after the current decline, these stocks can face no further decline. In addition, these stocks are now available at a decent price. If the government were to invest in the H-share market, it could boast the national economy and raise investor's confidence once again. This investment in the future of the country's economic development seems viable because under the current monitoring system in Hong Kong, speculation should not be a problem.
http://www.chinadaily.com.cn/bizchina/2008-10/16/content_7113263.htm
Thursday, October 09, 2008
Ideally how should government maintain relation with the business world
Since the milk scandal that have recently took china into a loop. The Chinese government has set aside approximately 300 million yuan for to help reboost the dairy economy which has suffered an estimated a 30 million yuan loss a day. New research and investigations have been set and there has not been any recent evidence of melanine in any dairy products. So as the government and the dairy industry now has to rebuild the trust and faith in the Chinese people the dairy's industry fate depends on the success of persuasion.
China Demands Repatriation of Uighur Detainees Held at Guantanamo
China has once again called for the U.S. to repatriate 17 Uighurs to China. The Uighurs were picked up 7 years ago and have been cleared of being enemy combatants. Since being cleared, the issue is where to send the Uighurs upon their release. The U.S. wants to release them, but there is fear from the White House that the Uighurs could be tortured if sent to China. In 2006, the U.S. released 5 Uighurs and sent them to Albania.
Chinese Foreign Ministry spokesman Qin Gang, does not believe the White House's concerns are valid. Qin says such a view is biased against the Chinese and that China is a country of law in which tortute is not permitted. He hopes the U.S. will release to Uighurs to China so that the men can be brought to justice.
This Uighur case is among dozens of Guantanamo cases now being reviewed since foreign detainees have a right to appeal their detainment at Guantanamo to U.S. civilian courts. This matter will be of importance because in Xinjiang, Beijing has cracked down upon those it deems as being separatists. Some Uighurs claim they are being repressed. Besides the U.S. fear of tortute, China considers the 17 men as being members of the U.S. and U.N. recognized terrorist organization known as the East Turkestan Islamic Movement. Therefore, what happens to the 17 Uighurs in this case will have an impact on Chinese and American political relations.
http://voanews.com/english/2008-10-09-voa9.cfm
Chinese Foreign Ministry spokesman Qin Gang, does not believe the White House's concerns are valid. Qin says such a view is biased against the Chinese and that China is a country of law in which tortute is not permitted. He hopes the U.S. will release to Uighurs to China so that the men can be brought to justice.
This Uighur case is among dozens of Guantanamo cases now being reviewed since foreign detainees have a right to appeal their detainment at Guantanamo to U.S. civilian courts. This matter will be of importance because in Xinjiang, Beijing has cracked down upon those it deems as being separatists. Some Uighurs claim they are being repressed. Besides the U.S. fear of tortute, China considers the 17 men as being members of the U.S. and U.N. recognized terrorist organization known as the East Turkestan Islamic Movement. Therefore, what happens to the 17 Uighurs in this case will have an impact on Chinese and American political relations.
http://voanews.com/english/2008-10-09-voa9.cfm
Tuesday, October 07, 2008
China Upset at U.S. over Taiwan
The United States has upset China recently when it was affirmed that the U.S. was going to sale weapons to Taiwan. The New York Time's has reported that the United States would sell more than $6 billion in advanced weapons to Taiwan. Before America officialy recognized the communist party in China, they only recognized Taiwan as the national government in China. This arms deal could remind Chinese communist of the days when the United States striclty opposed China's communist party, even refusing to recognize them when they were clearly in control of the country. Chinese officials warned that this arms deal between the U.S. and Taiwan could deteriorate relations with Beijing and Washington, but so far the U.S. has not withdrawn their offer to Taiwan. China has canceled several important diplomatic meetings with the U.S. in protest to this arms deal. So far this attempt by the United States to reunite Taiwan with China has caused nothing but trouble, and this arms deal is just increasing the tension between the two.
Is it worth America to sell weaponry to Taiwan if its at the risk of Chinese distrust?
Since the defeat of the Kuomintang in China which led to their fleet to Taiwan there has always been a sense of political tension between China and Taiwan. Even today as the two nations economies has recently brought some dependency on each other since the economic reform in China there is still some distrust between the Communist party of China and the Kuomintang in Taiwan. As China's open market increased in foreign relations with the United States and Taiwan what is the risk the United States is playing by providing Taiwan with military arms stiring the pot of distrust.
China takes stock in crisis
Due to the United State's current economic situation, Chinese exports to the U.S. are down from last year and China is undoubtedly effected by America's bout with possible recession and inflation. Despite the economic crisis effecting China and the rest of the world, the Chinese are not taking the full power of the blow due to having a relatively closed economy by standards of a free economy. This semi-closed nature is acting as a buffer, offering China's economy some protection.
China is seeking to boost its local economy in order to deal with a slowing down of its exports. The current economic climate is further reinforcing the benefits of China's gradualist approach to slow reform. In decades past, some suggested China should be open more economically and criticized the country for being shut. Now it's the very "faults" China was once criticized for in the past, that now are empowering it and allowing the country to adapt to the current uncertain economic times.
http://www.atimes.com/atimes/China_Business/JJ08Cb01.html
China is seeking to boost its local economy in order to deal with a slowing down of its exports. The current economic climate is further reinforcing the benefits of China's gradualist approach to slow reform. In decades past, some suggested China should be open more economically and criticized the country for being shut. Now it's the very "faults" China was once criticized for in the past, that now are empowering it and allowing the country to adapt to the current uncertain economic times.
http://www.atimes.com/atimes/China_Business/JJ08Cb01.html
Monday, October 06, 2008
China cancels military contacts with US in protest
Beijing has cancelled a series of military and diplomatic contacts with the United States and is upset by a $6.5 billion dollar arms package the United States is sending to Taiwan. The move of the United States to sell missiles and helicopters reopens wounds on the sensitive subject of China-Taiwan relations. In a move which seemingly increases the offensive firepower of Taiwan, China-U.S. relations will undoubtedly take a hit.
Taiwan relies on the U.S. for arms and weapons. The U.S. claims the sale does not mark a change in policy towards China but China remains critical of the move and the motivations, nonetheless. Taiwan actively seeks to buy arms from the U.S. in order for protection against China, in what could amount to an invasion should Taiwan ever formalize its de facto independence.
http://ap.google.com/article/ALeqM5gS3Tn6_ooFiIapSSBG9VZ3mEUlmAD93L6S381
Taiwan relies on the U.S. for arms and weapons. The U.S. claims the sale does not mark a change in policy towards China but China remains critical of the move and the motivations, nonetheless. Taiwan actively seeks to buy arms from the U.S. in order for protection against China, in what could amount to an invasion should Taiwan ever formalize its de facto independence.
http://ap.google.com/article/ALeqM5gS3Tn6_ooFiIapSSBG9VZ3mEUlmAD93L6S381
Sunday, October 05, 2008
POLS 365- 10/05-2
I just finished reading "Wild Swans", this evening. The book seemed to take a long time to read, but in the end, I rather enjoyed the book. I'm not sure if enjoyed is even the right terminology to use, rather I appreciated the book. I am still curious as to whether of not Jung Chang found love in her life. Throughout the entire book, the author rarely mentioned herself with men. I was touched by her story. Her mother seems to be the heroine of the novel. She is always there and always doing anything it takes to keep her family together and safe. I still find it unbelievable that China went through such a horrible time when it seems as if that say and age would have been much better compared to what other parts of the world were doing at the same time. I'm still in shock over the torture that occured. It's just terrifying. The novel did a great job portraying not just one generation in China, but 3. Was all of China like this?
POLS 365 10/05- 1
The state of the US economy has been rather disturbing to me. The largest drop in the stock market in one single day happened this past week. Suddenly, I was quite alarmed and paying attention to every detail about our economy and the stock market. People are afraid of another depression. I find that it will be impossible for this country to turn back to what it once was in the 1930's because the US is now part of the world economy. Whatever happens in the US economy will heavily affect the rest of the world. China is the nations leading exporter and if the US doesn't have the money to purchase these exports, then the entire world will feel the problems of our economy. This simply scares me.
Saturday, October 04, 2008
Maoism & Marxism
It was interesting in class the other day to learn the difference between the two ideologies. Much has been portrayed in our society that the all Communist regimes have been classified as Marxist regimes. However, that is not the case for China. Marx believed that his ideology would come to the most industrialized nations first; like the United States, Britain, France and the Netherlands. In the case of China, it was very underdeveloped and a very poor nation, which contradicts Marx's statement about his movement starting in the most industrialized nations. This goes for much of the analysis of Marxism that China does not meet many of the requirements that Marx explained in his Communist Manifesto. It seems that Marx was wrong not only with China, but places like Cuba, Vietnam, and North Korea, which are underdeveloped nations that have Communist regimes.
China and US Relations
Since China's rise as a communist nation in the late 1940s, the relationship between the United States and China has not been that of any other major powers that the US has relations with around the world. For a while the United States did not even recognize China as a foreign power, because of their communist ideology. The United States had recognized Taiwan as the Peoples Republic of China and still to this day the United States has a great relationship with the Taiwanese government.
However, since the economic explosion in China, the relationship between the two nations has had to improve. Both economies over the past 30 years have had to become interconnected with one another. Today many US companies have invested heavily in the booming Chinese economy. Though, this investing in China's market has led the United States to loose some ground in the playing field as a economic hegemon. The United States has amounted a very large trade deficit with the Chinese. Though, it has opened a large trade deficit the US is highly depended on China for there economic productivity. That is why I believe that the relationship between the US and China will continue to improve, because both nations need each other to invest economically. I do not foresee and major relationship because both want economic prosperity.
However, since the economic explosion in China, the relationship between the two nations has had to improve. Both economies over the past 30 years have had to become interconnected with one another. Today many US companies have invested heavily in the booming Chinese economy. Though, this investing in China's market has led the United States to loose some ground in the playing field as a economic hegemon. The United States has amounted a very large trade deficit with the Chinese. Though, it has opened a large trade deficit the US is highly depended on China for there economic productivity. That is why I believe that the relationship between the US and China will continue to improve, because both nations need each other to invest economically. I do not foresee and major relationship because both want economic prosperity.