Fallows: China's Rise & US Impact -1/5

James Fallows - national correspondent for the Atlantic Monthly and a noted expert on China - describes the remarkable transformation of China over the past 25 years and the massive impact of that transformation on the United States. He also discusses the painful choices confronting the US (on account of its dependence on China) and the future of China-US relations.

PLEASE READ MY COMMENTS ON THE VIDEO BEFORE WATCHING.

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[KashifHKhan]

PART 6:

Finally, I was surprised to hear that China (unlike Japan) is much more like the US and that the two are "natural partners". The entrepreneurial spirit in China is very strong - just like the US - and the society does not like to follow Japan's rule-based approach. US should thus cultivate China as a major partner. It is also interesting to hear the only vestige of communism in China is political control; even then communist party is open to feedback (eg. on environment).

-Kashif

[KashifHKhan]

PART 5:

Fallows is rightly concerned about the "imbalance" in US-Chinese economic relationship. The US is living considerably beyond its means and needs to make policy adjustments. Moreover, over time China will move its assets out of US if US doesn't behave maturely in dealing with its financial mess. It is interesting to hear Fallows insistence on Chinese goal of building a solid "middle class" (in contrast to US policies since 1980s have been gradually reducing its middle class).

-Kashif

[KashifHKhan]

PART 4:

China's tight control over its currency has strong domestic as well as US benefits: (a) it keeps Chinese inflation low (a major worry on account of past famines) and prevents destablization of economy via rapid capital movements (remember Asian crisis?); (b) the recycling of dollars back to the US keeps dollar value high and interest and tax rates low. In fact, as Fallows puts it, US benefits are a remarkable case of a poor country underwriting the lifestyle of a rich country.

-Kashif

[KashifHKhan]

PART 3:

China's wealth creation is all the more remarkable considering that it keeps only a small portion of the "value" of the product manufactured and sold. For instance, China keeps only $1 of a $10-30 ethernet cable sold in the US. Clearly, this means that China has created massive wealth for others in the West (such as brand owners, retailers, designers, etc.). US brand and retailing firms, especially, have enjoyed high profits precisely because of low-cost Chinese manufacturing.

-Kashif

[KashifHKhan]

PART 2:

It is not clear to Mr. Fallows if China can move up the business value chain into high-end manufacturing as university system is strong but intellectual property protection is weak and media and political system are closed (thereby hindering development of innovative ideas). Despite low-end manufacturing driven model, general public eel "things are up" and the "country is on the right track". In fact, China boasts some of the highest public confidence scores in the world.

-Kashif

[KashifHKhan]

PART 1:

China's economic boom is rooted in a robust manufacturing model: (a) contract manufacturing relationships with a large number of major international firms, (b) manufacturing process includes high labor component as labor is cheap, allows more people to be employed, and creates "flexibility" to adapt to changes in production, (c) enable people - especially women - to move from villages to cities, and (d) encourage relationships between villages and factories for obtaining labor.

-Kashif

[andyhwang2009]

China will be Democratic country in 2020 because of Chinese middle class. Politicians , investors , media in USA said 19th century for UK, 20th century for USA and 21st century for China .China will be World #1 superpower in 2030 like USA. American people believe China will be #1 Superpower. Japan rose between 1895 to 1943. China is rising and will occupy Japan and revenge Japan because Japan raped, killed in Nanking in1937.

[BullseyeIX]

Yeah many people ignore all videos that doesent have 4 stars or more. I to would have given this video 5 stars.