Friday, November 18, 2005

China, Inc.

With President Bush currently on a diplomatic trip to Asia, here are a few facts on China you may find interesting...

- Chinese wages, sometimes under $.25/hr, are so cheap that Mexico has been losing manufacturing jobs for several years to the Chinese.
- There are now more English speakers in China than in the U.S.
- In order to support the numbers of Chinese migrating to the cities, a city the size of Houston must be built each month.
- China, with its population still relatively uneducated, graduates 5 times more engineers than the U.S. each year.
- There are already more internet users in China than the U.S.
- U.S. companies are currently losing more than $300 billion/yr due to the lack of Chinese copyright laws.

If you're looking for a fascinating study in trade policy, look no farther than China-U.S. In the next couple of years there will be some key decisions coming. Will the WTO/U.S. force China to allow its currency to be freely traded? China has the potential to dwarf the U.S. as an economic power. What repercussions will that have in geopolitics?

1 comment:

The Big Ticket said...

I'm sure the Chinese internet usage will be revealed yet again come February when Yao Ming is voted to start the NBA all-star game after his perennial disappointing first half of the the season.