This blog contains posts and comments written by students in Dr. Tufte's economics classes at Southern Utah University.
2/16/2005
China's "Great Leap Forward"
China has really blossomed economically in the past decade and are continuing to up the ante for every other competing economy in the world. This article from Slate, http://www.slate.com/id/2113345/, crunches some interesting numbers on how China is growing, such as receiving more foreign investment capital ($53 Billion) than any other country. Also, discussed is China's manufacturing strategy of being able to undercut competitors labor costs significantly, which has given many companies' no choice, but to send their manufacturing to China. It is expected that these costs will continue to stay low with so many unemployed farmers and state workers sitting on the backburner.
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1 comment:
-1 on Jacques' post for a poorly formatted link.
It will be interesting to see if China can sustain this growth in the future. The theory says that they can't.
Keep in mind though that since China has more population than the U.S., they can overtake us as the largest economy in the world even if they can't sustain their growth rates.
However, if that is the case, then China isn't our worry, India is. When you are old, the U.S., India, and China will be the big players on the world stage (provided that those two can keep from fracturing along ethnic lines).
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