China vs. America - a new take? - Aussie Stock Forums

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  1. #1

    Default China vs. America - a new take?

    "Tai gui le - Too expensive".

    Those were the first Chinese words I used. I had walked out of the customs area at GuangZhou airport, in January 1007, my first visit to China, and was an obvious mark for the helpful young men who descended on me. One led me off with much gesticulating and obvious heartfelt concern for my well-being. The asking price for helping to negotiate around 60 metres was 100 Yuan. I did not know if that was too expensive but I did know that all prices had to be negotiated, so I negotiated. He looked crestfallen, as if I had insulted his mother, grandmother and a string of ancestors. I probably just looked confused. Hence the final price was 60 yuan, which was probably three times as much as I should have paid.

    On time 99% of the time. Dream on. The one announcement burned into my psyche is along the lines of “Chinese, Chinese, Chinese,” rattle, squawk, static, English – “we regret to inform you that flight CS - 983 to Nanning has been delayed”. They pack many more people into Chinese domestic aeroplanes. I got an un-interrupted view of the cabin wall, while resting my knees in my ears, and that was supposed to be the window seat. A subtle game is played by those smiling young ladies behind the desk when allocating seats to foreigners.

    On the flight into GuangZhou I saw how a country can accommodate 1.4 billion people. They do it in countless high-rise apartment blocks. I was intrigued to see farmers working the land beside the airport and in and about the high-rise apartments and factories. That was to become a feature of China for me: the 21st Century beside millennia of tradition, poverty side by side with wealth. In the West we rely on fossil fuels to plant and harvest our food and transport it to where the population is. In China, they rely on labour to a far greater extent do the same thing [though that is obviously changing]. Hence, if there is a major oil shock, the industrial capacity of China will be affected, but they will still be able to feed themselves, basically. How will we do that in the West, since we cannot even plant the crops, let alone have the widespread knowledge to do so? I am not a doom-sayer, indeed I am optimistic about the emergence of China, and think is a necessary foil to the power of America. However, I know which world leaders will be more relaxed about a world oil shock in the short term.

    I was going to Nanning, which is located about 250 north of the Vietnamese border. It has always been the trading city between China and Vietnam and still is. It hosts a major Expo each October for SE Asia and is looking to become a hub for SE Asian commerce. Like all cities in China, it is constantly evolving and growing with apartment blocks springing up like the proverbial mushrooms. As I was being driven around, rather alarmingly, in the local taxis, I could not help thinking to myself that if the people in America are wondering where all their money has gone, I can tell them. It is being used to build high-rise buildings and factories in China. The Chinese don’t need to use debt or counterfeit money like the Fed Reserve does in the good old US of A. No, they use real money sent to them by the US and the rest of the western economies that are rapidly diss-saving while China saves.

    I think of America and China as two houses side by side. America once upon a time built a large mansion and tended its gardens very well, growing food and flowers. Beside it was a small mud hut with the land being inefficiently tilled. Then the people in the mud hut started to make clothes for the rich people next door, who soon forgot how to make their own clothes. Then the people in the mud hut built a second mud hut and asked the people in the rich mansion if they could help them set up a factory and show them the technology to make widgets, of which the people in the rich mansion where particularly fond and which were a real pain to make. Best of all, the people in the mud hut could make the widgets for less and less money. And as widgets only had a limited life, that was a good thing, since the people in the mansion could keep on buying them from the people in the mud hut for ever and ever, cheaper and cheaper. There was obviously no need for the people in the rich mansion to work ever again, the people in the mud hut would do it for them. And so on and so on. However, the people in the rich mansion soon found that without working they could not buy widgets, or clothes. So rather than work, they first spent their savings [which didn’t take long, since they were very meagre indeed], then they persuaded their friendly central bank to print lots of money and being devilishly clever, they paid for the widgets with bits of paper. Ha Ha Ha, sucks on you Chinese. BUT!, those little bits of paper are still real claims on the wealth of the Rich Mansion.

    Over time, the people in the rich mansion not only gave all their money to the people in the mud hut and told them how to make just about everything, they, rather than work, borrowed money to purchase their widgets from the people in the mud-hut -- who all the time were very polite and smiled a lot, while reading Sun Tzu, 'The Art of War'.

    Now the people in the rich mansion - which is starting to need some maintenance, I gotta tell you - are in effect renting from the people in the mud hut, who have watched in amusement as this young nation full of hormones goes around the world fighting everyone and throwing its wealth away. 'The Art of War' counsels that you should never extend your lines or dissipate your strength on far away battles, and that the nation that does will surely lose the war.

    I use the references to 'The Art of War' in a tactical and strategic sense not a military sense. China is certainly not looking for a war {in the western sense} with any country. Well, possibly with the exception of Taiwan ... in the fullness of time ... when it is propitious ... when the people in the rich mansion are fixing their leaking roof.

    Oh, and taxi drivers in China should charge at least double for a journey in the front seat of their taxi. It is far more exciting than any theme park ride.

    I would be very interested to see any comments on the above, particularly if you diss-agree.


  2. #2
    wildkactus's Avatar
    Join Date
    Nov 2007
    Aussie OS - Hong Kong

    Default Re: China v America, a new take?

    Not a bad read I pretty much see it the same way.
    the west is just giving these developing countries all the tools to take over.while they save and save. (must admit I have been part of this too)

    I have factory invesments in southern china and the first thing we did was to import all the technology and even the techincal staff to train the locals, now the western staff have gone and the locals are training the locals to use the machinery, at a more productive rate, (in time and money) and to the same standards as the western staff. Plus the products we sell are all to the same if not higher standards set out by our customers in US and europe.

    and your right about the taxi's, have just come back from foshan. and taking a taxi at night is a must for every trill seeker. 120 km/h horn blowing and no lights.
    its great.

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