The Economist for September 25, 2010, mentions China a number of times proving that China’s growth as a world power is not ending soon.
In Valuable Vale, we learn that China has transformed a Brazilian iron-ore company from a small fry to a giant in a decade with more to come.
“China has propelled (Vale) from insignificance…to a market capitalization of $147 billion. It is now the second-largest miner (on the globe).”
Then some of the yuan that went to Vale to buy iron ore flowed back to China when Vale ordered a fleet of enormous ships from China.
In A Mao in every pocket we discover that China struggles to continue “managing” the value of the yuan since China’s central government still fears the unpredictability of global markets.
However, the way China manages the yuan may be changing since recent currency reforms allowed exporters to price their good in yuan, rather than dollars. Yet, some controls are still in place since “yuan flowed out of China only if goods or services flow the other way.”
In the meantime, pandering to voters, the U.S. Congress is looking for ways to punish China over the way the yuan is managed but only if the proposed bills comply with WTO (World Trade Organization) rules.
Wild is the wind shows that continued growth in the green-energy industry also depend on China. The Economist says that “installations (wind turbines) this year in America could be little more than half what they were last year” and that “the only market that continues to grow is China.”
The evidence shows that China is still crucial to the world’s recovery from the Wall Street, U.S. sub-prime mortgage induced economic meltdown of 2008.
Learn more as China Moves Toward Orbit and Beyond
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Lloyd Lofthouse is the award-winning author of the concubine saga, My Splendid Concubine & Our Hart. When you love a Chinese woman, you marry her family and culture too.
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