Conversations With History: China and the United States

[dlh127kor]

I wish more Chineses watch thid video so they know what it's really like around in China.Just because their lives improved a tiny bit from their miserable past that they are happy with it .They are so far behind compare to Japan and Korea.I don't care how rich there government is ,they never catch up to the living standard of Korea,Japan or Taiwan.Just face it China

[writersblock26]

Thank you for posting this, UCtelevision.

[potterxi11]

@33:23 Good call on the next president Killing Osama Bin Laden! Also, this being written in 2008, its crazy to see how much of this is true and how scary it is to think what will happen in the years to come.

[powerofthroughts]

china history is different from America. American means descendant from the Europe. So it was the white man, went over there and killed of all the native and took their lands. they called it u.s.a, so that is a fact. the u.s really got no history or cultures. However, America today was created by criminals, poorest people from the Europeans states, jews, irish etc..

[usnumber1]

China is a poor country... full of misery and cheap labor.

[bobsticles69]

Yea great to see some real information on china.

[writersblock26]

@bobsticles69 Agreed.

[1888junkteam]

excellent work!

[ApathyEcstasy]

james fallows rules

[Mojo1982]

Aweful music, UCTV should use that old 80s VHS soundtrack again.

[breezyday28]

I don't think I was clear enough in my previous post. What I meant to ask was, since the exchange rate is influenced by the domestic country's currency reserves of both domestic and foreign currency, it made since that china stocked up on dollars. But mr. fallows says here that china used a significant portion of dollars to invest in US assets. My question is why did they choose to invest in the US instead of themselves? Is it because at the time, US assets appeared to have better returns?

[lordennis01]

Seeing as to this was posted about a month ago, I don't know if you are still interested in an answer.

In short, the U.S. T-Bill (which is what China has been investing in, actually not just China but other OPECs) is perhaps one of the safest assets to invest in in unsure circumstances as well as Gold. I would argue T-bills are even more stabled than gold though. So, then the question is Why the U.S. and not, say, Germany.

[lordennis01]

My inference is that the U.S. can manage it's debt, that is, it doesn't have to worry about economic pressures from any one country. On the other hand, the other countries have indeed economic pressure to worry about from the U.S. and it's lovely Treasury department. Also, the U.S. has a reliable taxing system, very intimately developed much more so than China's.

What you're asking is Why doesn't China buy its own assets. It's like asking "Why don't Farmers buy their own crops."

[lordennis01]

They actually have invested enormously into their infrastructure. Like take the airports they are building, take the skyscrapers they are errecting, take the bridges they have built (Donghai Bridge, Runyang Bridge, and briges in Macau)

[hisholyhoviness]

when obama tried to do the same in the US the republicansd called it socialism .instead of loking at the big picture.

[lordennis01]

Sorry, but I don't know what you're referring to.

[breezyday28]

can someone help me understand why the Chinese did not choose to convert the foreign currency reserves into Chinese currency and channel that into large gov projects, pumping money into its economy, which would allow the Chinese currency to depreciate (what they want).

I'm unclear as to what causes foreign exchange rates to fluctuate. Thanks!

[Chhaylin]

Because the Chinese economy has been driven mostly by export... And the biggest importers are the Americans.

In order for the Americans to keep their consumption level, their trade deficit needs to be financed.

But I think the best thing for China is to stop financing the US deficit. It will immediately crash the US economy, and it will cause a deeper global recession. But the world does not need the US to grow. In the long run I think the world will be better off.

[hisholyhoviness]

and who would replace the us ?who would provide the balance ?the e.u?they have since been proved impotent

[Chhaylin]

What balance are you talking about?

As of the moment there is NO balance at all. It is the world trying to finance/sustain this IMbalance that caused the crisis.

Tell me, what is the 'balance' of this: the Americans print Dollars, buy commodities denominated in Dollars, depreciate their currency, borrowing money from the Chinese/Japanese/Middle East so that they can finance their consumption again, having more debt, to cover the debt they borrow móre or print more Dollars to start over again.

[Chhaylin]

This world doesn't need 1 country that 'dominates' the world economy. Think about it. The Americans use half of the world's oil. What if they cannot afford the oil anymore? That means more for the rest of the world to consume. Other countries can easily develop without the US. Of course in the short run the whole world will have troubles, but in the long run I think China will keep on growing without the US.

[patnais102]

You are funny.The E.u is actually the biggest market on earth if there is one sector where the E.U is doing good it's the economy.Most of their bank were insured by AIG you paid them back with your bailout.

[hisholyhoviness]

Wrong .the eu is the biggest market yes.but it does not mean in step in the uhoes of the u should the u.s vacate cos for the ne the e.u cannot even agree on decisions as an entity .they dont have a unified military to seure their interests .and alsways need the us to hold their hands on everything .political factions between the members can always lead friction and cos nt all members are using the euro there .also the eastern nations are all unstable right now and facing bankruptcy.i dont agree.

[hisholyhoviness]

ahhh .i sense a case of european envy here .ever ince ww2 europeans have quietly sethed in evy at the usa.wnder if u felt tht way when ur country was probably a colonial superpower.china stopping the funding will lead the us to print more dollars causing inflation.rendering chinas reserves worthless.

[purelego]

chinese export most of their product, that means lower currency mean cheaper product when it convert to us dollars. But for countries which import product it better for their currency to be higher so they can buy more prudct with every dollars.

[gordontian]

wow, this prof's so right as of march 2009 :D

[FreeTheTruth1]

This is very informative.

[yzz1979]

I found this talk very incisive but very rare on dominant US media.

[purbanegoro]

True- China has killed less foreigners than the US- and probably never will.

What prevents China becoming truly great is it's massive population, lack of modesty, lack of refinement and greedy, immoral pursuit of capital regardless of human or environmental damage.

Chinese culture maybe rich, BUt is not superior to others. In fact can be argued inferior to many.

Japan and Korean culture/society, right or not , are widely seen as superior.

They do not eat cat, insect, rhino, tiger or penises.

[Puntonghua]

purbanegoro: How can they their culture be superior when it derives from Chinese culture.... The whole superior inferior culture bullshit has to do which country has a higher standard if living... Besides culture has more do than just what is eaten or not...

[ric0211]

Well, I am a full chinese who have lived in china all my life, and i can tell you that, given an equal price btween something made in china vs. made in USA, chinese ppl (most) would prefer the made in USA ones. Further, i must say, you have really good chinese for someone not born in china, impressive!

[ric0211]

Further, the fact that our government's usual first response to tainted food/product is to hide the fact. My city just found out that this brand of baby diapers had been tested to contain too much harmful chemical (damages height growth) but local officals has obviously been brided so the info wasnt released until things have gone terribly wrong. I critize my country not out of despise, but out of hopes for improvements

[Puntonghua]

Yeah I do think that those local governments have too much freedom to do what they want. That is China's biggest challenge, I think they need to crack down harder on corruption...

[purbanegoro]

This is precisely what hurts most- this silly concept of lian/mian zi or public face.

Much better for China to really be as tough as possible on such awful businessman- but unfortunately-as in the US as well as elsewhere many greedy bureaucrats will get a lot less brown envelopes.

I think true patriotism and national solidarity are missing in today's officials- everywhere.

Officials are too often like prostitutes

[hisholyhoviness]

i hope that some official isnt reading ur comments right now .cos they will come for ur ass.

[ric0211]

I am not worried, they are too busy banning porn sites back home.

Plus, I still consider myself patriotic :D

[Puntonghua]

I don't really care where something is made... I'm sure that in certain cases made in China products have their flaws, but that has more to do in which factory it is manufactured than that is made in China... Thanks BTW, but I think my Chinese is not good enough yet (not good at all ) 我只会认识400汉字左右 and I have some difficulties with the 把 and 得 construction although i'm beginning to understand it...

[purbanegoro]

Chinese hygiene and manners have enormous room for improvement.

As does classing a prostitute as higher than a toilet cleaner as "she is richer".

Do not attempt to bullshit me- I know China very well- people like me actually travel outside the tourist areas to real factories and towns.

Why do Chinese people eat such rubbish- since meds are cheap & China no longer have famine?

My Shanghai friend says only Southern China morons eat such disgusting things?

[Puntonghua]

Its pretty obvious this is not based on objectiveness... BTW I'm not bullshitting you, because your doing pretty good job yourself... get over yourself...

[Kr4zyAc3]

what are you talking about mutha fucka south is good north is good your shanghai friends are wrong since shanghai is pretty in the south you dipshit and plus that disgusting food might be bizarre to you but to us its good you dont us trashing your food and plus our food is exoctic but usa food is good too so shut up and get a life you idiot and also we have a higher literacy rate then you while we have 90% you guys have 60% so shut up god you hobo who has no life

[Kr4zyAc3]

we eat those foods since they are proven to have medical bebnefits and how is korean and japense culture superior they both came from china if china did not exist korean and japense still use wooden swords canoes no writing and not even exist since korean and japenese came from china to colonize and also china has contributed tons of things witout china no gunpowder no compasses no anything so shut up you imbecile and a excuse and disgrace to america and the human race you dipshit fucker

[D1lk]

The U.S. financial system has stolen trillions of dollars from the people of the world, and especially from China. Why are words like FRAUD, THEFT never mentioned? That's the example the U.S. sets the world now as in 1929.

[ric0211]

I am Chinese and I fear our products like the plague

[Engagepower]

I don't think china made computers can kill you.

[ric0211]

That's true, people didn't think milk or toys made from china could kill them too, but facts and history speaks otherwise

[Kr4zyAc3]

or do they lol jk im chinese i dont i think atleaast lol

[Powa2]

Well you have a lot to fear since everything is made by those damn Chinks

[Puntonghua]

ric0211 : Well I am not Chinese and I have been using/eating made in China products my whole life ---> still alive and I never get sick... Don't let media pollute your head with their profit pursuing reports, its right out pathetic...

[Cr1nchy]

ezedre, if your a fucking yank who has poor knowlegdge of China then stay out of this!

[lingwingzing]

I can tell you haven't watched more than a few minutes.

James Fallows is my hero.

[danceonwind]

sigh~~~~~~~~~~

[americaninjustice]

China and US are more alike: that's an insightful observation.

[tomlovegod]

@americaninjustice China is the yesterday america.