The Rumbling in Asia
When China awakes, it will shake the world. - Napoleon Bonaparte
Those tuned in to current world affairs know that, to further upon Napolean's quote, a once idle beast has stirred from it's long slumber. The People's Republic of China has spent several suns and moons harvesting it's productive capacity, and the countries already carrying big sticks are nothing if not in wonder. The United States, currently still grasping the crown of economic and technological World Leader, has stepped to one side to allow China in the ring. Negotiations between the 'power countries' of the world now involve the US, many of the EU, Japan, Russia and China. (India is growing exponentially as well; a future competitor in definition). How does China fair in the economic Big League? Let's take a look:
China's Gross Domestic Product (GDP) grew at an average rate of 9.3 percent between 1979-1993. The world experienced a growth rate of 2.6 percent for the same period. China's GDP has also quadrupled over a period of only fifteen years.
And how has China fared in relation to international trade? I'd say excellent, but that's an understatement.
Another important fact is that China has accumulated a large foreign currency reserve and is second in the world to Japan. China has also taken advantage of foreign investment and is also rated second in the world, after the US.
And it's projected growth pattern in the new decade?
While China's performance has been impressive, it also has the potential to maintain this growth. It has a massive population, which represents not only a large domestic market but also a cheap labour source of some eight hundred million people. It is also a country that is blessed with vast natural resources. The current economic problems in Asia have not had a major impact on China, though there are predictions of slower growth. However, it is expected that China will become the world's largest economy, in terms of GDP, this year, 2010.
And, it is a young February 2010; the slumbering beast is, without question, conscious and fervent, ready to swallow up whatever world it can. The United States has a relatively new phenomenon to make deals with. And, although a stony old brute, mighty and monolithic with it's stick, the United States must be at least slightly wary: who knows whether it can withstand being swallowed.