Sunday, February 18, 2007

China's economic growth, a threat or a blessing?

China's spectacular economic growth is an alarm to both rich and poor countries. Wealthy nations like the USA are to face a giant in the making as it will relegate it to a power instead of a superpower. Developing countries can have their ambitions of an economic take-off hampered by the Chinese expansion in every corner of the world. One mechanism to curb Chinese economic and military threat is to devise a new international trade mechanism by which giant economies shouldn't swallow small ones.

China will continue to be unrivalled in its economic expansions. Developed nations can't afford to have underpaid workers who help make the prices of goods cheap. Developing countries can't make the best of their resources. So they find in Chinese goods a shortcut to have whet they need.

Chinese economy shouldn't morally expand at the expense of its underpaid workforce and by flooding international markets with cheap goods that in most cases don't have the quality of other developed economies.

1 comment:

ChinaLawBlog said...

China is toughening up on its labor regulations and wages are increasing. Think Korea 20 or so years ago and Japan 50 or so years ago.