Building China too Fast and the Struggle to Slow Down

August 18, 2011

Andrew Thomas of Aljazeera English reported from Chuzhou, China July 13, 2011.  He tells us about real estate agents in Beijing canvassing the traffic during rush hour, which happens to be most hours in China’s capital.

In the U.S., we might see homeless people going car to car offering to clean windows for a dollar but in China, the odds are those people going car to car will be real estate agents handing out flyers urging people to buy homes.

During most of the day, one can get around Beijing faster on foot or using the subways than driving a car or taking a taxi, which usually results in sitting dead in traffic breathing fumes from other cars.

Thomas reports that the real-estate agents will do just about anything to sell apartments hitting the market. The reason is that the Chinese are building more new apartments than any country on earth.

In Chuzhou, three hours from Shanghai, Thomas takes us on a tour of what he calls an “unremarkable town” and says this level of housing development is happening all over China.

Thomas says, between 2009 and 2010, there was a 41% rise in housing construction as prices soared. He then questions if Chinese speculators are driving this housing bubble.

In addition, he says China’s electricity authority, last year, reported that over 65 million homes use no power because they are standing empty as prices keep going up.

Thomas says China’s government is worried and wants to avoid a real estate bubble bursting so they have raised interest rates and increased the minimum down payment people must pay for second homes.

Stephen Joske of the Economist Intelligence Unit says, “We are not looking at a bubble burst resembling anything like what’s happened in the U.S.—probably a short correction.”

Therefore, for economists in the West that keep predicting China’s housing bubble will burst and slow China’s growth, think again.

As for aspiring home buyers, many in China are waiting to see what happens and are hoping prices go down. Thomas says a price drop could hurt many overseas markets that depend on China’s growth and development.

If a real estate bubble bursts in China, the odds are that the shock waves will be felt worse outside China in countries still recovering from the 2008 global financial crises caused by the private banking and financial sector in the United States, and Thomas explains why that may happen.

The reason for this speculation may be the central government’s plans to move a few hundred million more rural Chinese into newly built urban cities and new homes in older cities as China transitions from an economy dependent on exports to one driven by middle class consumption.

These property speculators are betting on the future.

Discover more from The “What if” Housing Bubble in China

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Lloyd Lofthouse is the award-winning author of The Concubine Saga. When you love a Chinese woman, you marry her family and culture too. This is the love story Sir Robert Hart did not want the world to discover.

To subscribe to “iLook China”, look for the “Subscribe” button at the top of the screen in the menu bar, click on it then follow directions.

7 Comments | business, capitalism, China, Chinese middle class, economy, environment, government | Tagged: , , , , , , , , , , , , , , , , | Permalink
Posted by Lloyd Lofthouse

Spinning a Web – Part 1/2

August 16, 2011

Is Julia Lovell spinning a web to deceive about the First Opium War (1839 to 1842)?

ACN Newswire posted a press release recently announcing the pending publication of The Opium War by Julia Lovell (available September 2011).

Lovell’s reason for writing this book was to “see whether things really were as black and white as the Chinese textbooks seem to say it was.”

“Seem!” Doesn’t Lovell know what the Chinese textbooks say?

If you check to see who runs ACN Newswire, you will discover it is an associate company of Japan Corporation News K.K., which may mean nothing or everything when it comes to a nonfiction book that aims to make the Chinese look as guilty as the British regarding the Opium Wars.

Julia Lovell says, “It wasn’t a clear-cut story of innocent Chinese on the one hand, and the British invaders on the other.”


British author Julia Lovell talks about writing her book.

“But even if you look at the time, what’s going on during the time of the war itself, the Chinese are supplying the British, they are navigating for the British, they are spying for the British, for a fee of course, so there is an extraordinary pragmatism,” Lovell says in the ACN Newswire press release. “They don’t necessarily feel the loyalty to the idea of the Chinese imperial centre or the emperor or anything else, they will go with where the smart money is. And the British couldn’t have won the war without this assistance.”

There are two key phrases of Lovell’s proving her theory is more complicated than she makes it sound. The first phrase says, “for a fee of course” and the second, “They didn’t necessarily feel loyalty to the idea of the Chinese imperial center or the emperor or anything else…”

In fact, little is “clear-cut” about the Opium Wars. Since the Qing Dynasty was not ruled by the Han Chinese (which represents 90% of the population), but was ruled by a brutal Manchu minority, many Han Chinese probably felt little or no loyalty to the Qing emperor.

Continued on August 16, 2011 in Spinning a Web – Part 2

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Lloyd Lofthouse is the award-winning author of The Concubine Saga. When you love a Chinese woman, you marry her family and culture too. This is the love story Sir Robert Hart did not want the world to discover.

To subscribe to “iLook China”, look for the “Subscribe” button at the top of the screen in the menu bar, click on it then follow directions.

6 Comments | capitalism, China, Chinese history, crime, economy, history, media, politics | Tagged: , , , , , , , , , , | Permalink
Posted by Lloyd Lofthouse

Punishing Food Fraud in China – Part 2/2

August 15, 2011

If you read Part 1 of this two part series, you may be thinking it isn’t safe to eat in China.

However, Wall Street Journal.com says, “Struggles with food safety are not a specifically Chinese problem. Many countries, including the U.S. and Japan, have gone through similar growing pains in the food industry, says Wu Ming, a professor at Beijing University’s school of public health.”

Professor Ming is correct. Down to Earth.org reports, “Every day in the US about 200,000 people become sick, 900 are hospitalized and 14 die (that’s more than 5,000 annually) due to food borne illnesses (and few if any are punished for these deaths). According to the Center for Disease Control, about one quarter of the American population suffers from food poisoning each year.”


New U.S. Laws for food safety cover all food except meat, poultry and some egg products and there are other exceptions too.

If you believe China is not doing anything about food safety, think again. I Googled total arrests in China over food safety and the result was more than 1.5 million hits.  The first one mentioned 191 officials (in 2010 — meaning government employees) that were punished for failing to do their duty in food safety,” and some were sent to prison.

The second hit mentioned 774 (in 2007) arrested in China over food safety.

In addition, Sustainable Business Forum.com says, “Unlike the U.S., China arrests Food Safety Violators.”

Helena Bottemiller of Food Safety News.com recently reported, “Current statutes (in the U.S.) do not provide sufficient criminal sanctions for those who knowingly violate our food safety laws,” said Leahy, who has become an outspoken advocate of food safety reform. “Knowingly distributing adulterated food is merely a misdemeanor right now, and the Sentencing Commission has found that it generally does not result in jail time.”

In conclusion, if you are in the food industry in China and want to take short cuts regarding food safety to boost profits while possibly killing people along the way, the U.S. is a safer place to commit murder. In China, you might go to jail or even be executed.

What does that say about America?

Return to or start with Punishing Food Fraud in China – Part 1

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Lloyd Lofthouse is the award-winning author of The Concubine Saga. When you love a Chinese woman, you marry her family and culture too. This is the love story Sir Robert Hart did not want the world to discover.

To subscribe to “iLook China”, look for the “Subscribe” button at the top of the screen in the menu bar, click on it then follow directions.

2 Comments | America, business, capitalism, China, Chinese food, crime, economy, environment, food, government, health care, legal system, media, politics | Tagged: , , , , , , , , , , , , , , , , | Permalink
Posted by Lloyd Lofthouse

China’s Expressway Dilemma and the Solution – Part 2/2

August 10, 2011

One element of China’s plan is to not become addicted to foreign oil as the U.S. already has and one-step toward achieving this goal led China to become a partner with Shai Agassi and Better Place — something Washington D.C. has not done.

Time and Foreign Policy magazines recently named Shai Agassi as one of the 100 most influential people in the world.  The reason is that Agassi, an entrepreneur from California, launched a company called Better Place.

Deutsche Bank analysts may have already concluded that the Better Place’s approach to end global “oil” addiction could be a “paradigm shift” that causes “massive disruption” to the auto industry, and has “the potential to eliminate the gasoline engine altogether”.

To achieve a world free of a dependency on oil, Better Place has already partnered with California, Hawaii and Canada, while globally, Better Place is working with Australia, China, Denmark, Israel, Japan and the European Union.

On June 18, 2011, Better Place unveiled Europe’s first battery switching station in Denmark, and you may have noticed that China, as one of Better Place’s partners, is positioning itself to save China from the same fate that has already happened to politically gridlocked Washington D.C.

The station in Denmark, which show cased the company’s battery switching technology, is the first of 20 battery switching stations to be deployed across Denmark over the next nine months.

In the next few years, if successful, Better Place may lower the cost of driving significantly and break big oil’s monopoly on the economies of the world while lowering the cost of cars worldwide by providing an affordable, convenient and sustainable system through a revolutionary switchable battery model.

This means that instead of filling up with gas when the tank is empty, a driver pulls into a Better Place switching station and swaps battery packs in less time than it takes to wait in line and fill a tank with gasoline or diesel.

Return to or start with China’s Expressway Dilemma and the Solution – Part 1

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Lloyd Lofthouse is the award-winning author of The Concubine Saga. When you love a Chinese woman, you marry her family and culture too. This is the love story Sir Robert Hart did not want the world to discover.

To subscribe to “iLook China”, look for the “Subscribe” button at the top of the screen in the menu bar, click on it then follow directions.

7 Comments | America, business, capitalism, China, Chinese middle class, economy, environment, government, politics, science | Tagged: , , , , , , , , , , , , , | Permalink
Posted by Lloyd Lofthouse

China’s Expressway Dilemma and the Solution – Part 1/2

August 9, 2011

China may not know what it is getting itself into by copying the U.S. as far as linking all of its cities with Expressways.

About a year and a half ago, Shanghaiist reported that China had more than doubled the length of China’s expressway system.  Shanghaiist said, “It’s so long, in fact, that it should soon overtake the interstate highway system of the United tates as the world’s longest.”

China’s road building frenzy is linked to the same goal that includes having a population ratio between urban and rural areas that already exists in Europe and the US, which may create the largest consumer driven middle class in the world.

In addition, there is the parallel frenzy of multinational fast food corporations such as McDonalds, Pizza Hut, Starbucks and KFC opening thousands of fast food outlets in China.

In fact, China is quickly becoming another automobile, consumer driven culture similar to the United States, but it may not be a good idea to become a duplicate copy of the U.S.


China has a plan but the United States does not.

If you click on this link and study the chart from the U.S. Energy Information Administration, you will discover what China’s future fate may be and that fate, if it becomes a fact, will lead China into wars such as the two the US is fighting in Iraq and Afghanistan.

Due to U.S. imports of crude oil and petroleum products, America’s national interest and economy are linked to countries that supply oil to the US.

In January 2010, the Center for American Progress reported that Oil Dependence is a Dangerous Habit, and said, “The United States is spending approximately $1 billion a day overseas on oil instead of investing the funds at home, where our economy sorely needs it. Burning oil that exacerbates global warming also poses serious threats to our national security and the world’s security.”

Yet, there is little to no sign that the U.S. government is moving to break its addiction to foreign oil. Instead, the partnership between America’s federal government and big oil appears stronger than ever.

If China continues down the same expressway toward a consumer car culture that mimics the US, it too may face a similar fate with a middle class addicted to gas and diesel powered cars and trucks.

However, Shai Agassi’s Better Place, a company that had its start in California, offers a solution.

Continued on August 9, 2011 in China’s Expressway Dilemma and the Solution – Part 2

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Lloyd Lofthouse is the award-winning author of The Concubine Saga. When you love a Chinese woman, you marry her family and culture too. This is the love story Sir Robert Hart did not want the world to discover.

To subscribe to “iLook China”, look for the “Subscribe” button at the top of the screen in the menu bar, click on it then follow directions.

3 Comments | America, business, capitalism, China, economy, environment, government, politics, science | Tagged: , , , , , , , , , , | Permalink
Posted by Lloyd Lofthouse

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