I take a strong exception with the biased views highlighted in this article. Where is the contextual basis?
Source: A massive Chinese industry is flashing warning signs that the world cannot ignore | China Daily Mail
This article is typical of the China articles written for an American audience to make Americans feel that perhaps Obama has not been such a disaster after all and China will not really eclipse America’s economy.
Firstly, the risks in China’s steel and traditional industries are real. BUT the risks can be mitigated. Look how robustly China responded after the 2008 financial crisis which started in the US – China weathered the storm with a massive Keynesian investment splurge – admittedly it caused subsequent problems but it was robust decision-making.
The article does not compare to the US government bailing out the US motor industry after the 2008 financial crash?
Yes, the state corporations in China need urgent reform but so does the bloated public sector in the US, the UK, France, Italy and Japan – and, of course, the EU bureaucracy is probably the world’s most inefficient bureaucracy.
Similarly, the ‘old’ and ‘new’ could be applied to Britain’s collapsing public health service, the NHS. In this blog, John Gelmini and I have repeatedly argued in favor of scrapping the NHS and replacing it with a new best-of-breed public health service, leveraging best practice, in countries like Germany, Italy, France and Singapore.
The difference between China and the UK is that the government and political classes in China are ready to act decisively.
It reminds me of the old saying:
People in glass houses shouldn’t through stones.
Dr Alf is right.
People in glass houses should not throw stones, and people with dodgy economies, with deep-rooted problems, should not pontificate about China.
We have had stories like this before, along the lines that it would take 20 years for China to catch up technologically, that they would not be able to cope with an ageing population, and that they face breakup because of the legitimate aspirations of Tibetans and Uighurs to achieve independence.
Faced with this barrage of criticism, one could be forgiven for thinking that for them the sky would fall in and that they would be consumed by plagues and swarms of locusts and scorpions.
Every challenge they have patiently dealt with in their own way whilst at the same time creating 25 million nett new jobs a year, something that has never been done in the history of the world.
The criticism perhaps then is that the jobs are sweatshop jobs that nobody in the West or the readership of the Western newspaper involved would want. This may be true but if the alternative is living on a quarter of that salary in rural poverty, then the reality for that worker is a four-fold improvement in their standard of living, and the ability to send money home.
GO OUT/BRING BACK IN is a tough policy to follow but Chinese people in the practically minded categories are establishing themselves in businesses the world over, so in reality the Chinese economy is a lot bigger than the official figures suggest.