Cause and effect of Chinese GDP & ecnomic growth Worldwide.
- Thread starter antimatter
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Re: In 1840, CHina has the highest GDP in the world but.....
Actually industrialization is an important factor for the number of ships able to be build by a nation, be it S.Korea or China or Japan or who know what other nations. But it is not the only factor that determine the number of ships the country is able to build.
As long as the supporting industries was there and the country could build their first ship unaided by any foreign (or with minimal aid) industries, then the country is already industrialise enough.
Now when it come to the number of ships able to be build and the number of orders received for the ships to be built depended on many other factors such as:
1) Number of foreign companies who placed orders for the ships.
2) Number of local companies who placed orders for the ships (in China case, there must be needs for alot of domestic companies, more so than S.Korea).
3) The quality of the ships (need not be top nought but must be passable for rough usage).
4) Technology in the ships (must meet specification, doesn't need to be extremely high tech though).
5) Price (need I go into detail on this one?)
The reason for China to receive so much orders was not that she built ships that are better than the ones built in S.Korea, but for many other factors (abovementioned are some of them).
So I think we can not just base of ship building industries to determine whether China is industrialised enough or not. We must look at the entire nations, the project they are undertaking, had undertook and completed. Also by looking into the gross income of the country (in China's case, we must look at different states and not the average of the entire country because of her size and population.)
So I could safely said that by arguing whether China or S.Korea is the largest shipbuilding nation is quite redundant...
Actually industrialization is an important factor for the number of ships able to be build by a nation, be it S.Korea or China or Japan or who know what other nations. But it is not the only factor that determine the number of ships the country is able to build.
As long as the supporting industries was there and the country could build their first ship unaided by any foreign (or with minimal aid) industries, then the country is already industrialise enough.
Now when it come to the number of ships able to be build and the number of orders received for the ships to be built depended on many other factors such as:
1) Number of foreign companies who placed orders for the ships.
2) Number of local companies who placed orders for the ships (in China case, there must be needs for alot of domestic companies, more so than S.Korea).
3) The quality of the ships (need not be top nought but must be passable for rough usage).
4) Technology in the ships (must meet specification, doesn't need to be extremely high tech though).
5) Price (need I go into detail on this one?)
The reason for China to receive so much orders was not that she built ships that are better than the ones built in S.Korea, but for many other factors (abovementioned are some of them).
So I think we can not just base of ship building industries to determine whether China is industrialised enough or not. We must look at the entire nations, the project they are undertaking, had undertook and completed. Also by looking into the gross income of the country (in China's case, we must look at different states and not the average of the entire country because of her size and population.)
So I could safely said that by arguing whether China or S.Korea is the largest shipbuilding nation is quite redundant...
bladerunner
Banned Idiot
Re: In 1840, CHina has the highest GDP in the world but.....
Im trying to cheer "antimatter"up
Im trying to cheer "antimatter"up
Re: In 1840, CHina has the highest GDP in the world but.....
What you didn´t realize is that China is undertaking industrilization and urbanization at the same time. And China´s urbanization is on an epic scale, it is expected by 2040, 70% of China population will live in cities, while today only 40% of China´s population are city-dwellers. The prospect of nearly 400million new arrivers in urban areas will translate into robust demand for new houses that will inevitably drive up the real estate market nationwide. Do you expect the newcomers live on the street?
It is true in 1st-tier cities like Shanghai, Beijing, the property price is obscenely high even by the standard of developed nations, which is partly why they were frequently cited by NewYork Times as a testimony to China´s property bubble, however, in China´s 2nd and 3rd-tier cities, house price is still reasonably affordable. On the whole the bubbles in China´s property market is still quite manageable. If you care to look more closely, you will realize China´s banks are quite conservative in their mortgage business and many Chinese people still prefer to save for purchase of their houses rather than take a loan, as a result, even if real este market stagnates from time to time, it would not be catastrophic chain-reaction that nearly brought the world economy to its knees.
I am really appalled by your ignorance and reluctance to learn a thing or two about China as you are always so eager to jump in the fray.
What you didn´t realize is that China is undertaking industrilization and urbanization at the same time. And China´s urbanization is on an epic scale, it is expected by 2040, 70% of China population will live in cities, while today only 40% of China´s population are city-dwellers. The prospect of nearly 400million new arrivers in urban areas will translate into robust demand for new houses that will inevitably drive up the real estate market nationwide. Do you expect the newcomers live on the street?
It is true in 1st-tier cities like Shanghai, Beijing, the property price is obscenely high even by the standard of developed nations, which is partly why they were frequently cited by NewYork Times as a testimony to China´s property bubble, however, in China´s 2nd and 3rd-tier cities, house price is still reasonably affordable. On the whole the bubbles in China´s property market is still quite manageable. If you care to look more closely, you will realize China´s banks are quite conservative in their mortgage business and many Chinese people still prefer to save for purchase of their houses rather than take a loan, as a result, even if real este market stagnates from time to time, it would not be catastrophic chain-reaction that nearly brought the world economy to its knees.
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bladerunner
Banned Idiot
Re: In 1840, CHina has the highest GDP in the world but.....
An area of concern for the government, could be the bubbles in the stock and property market hurting the emerging middle class the most, resulting in another discontented group. As if the distance in livining standards between, the rural and urban areas wasn't enough.
An area of concern for the government, could be the bubbles in the stock and property market hurting the emerging middle class the most, resulting in another discontented group. As if the distance in livining standards between, the rural and urban areas wasn't enough.
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Hendrik_2000
Lieutenant General
Re: In 1840, CHina has the highest GDP in the world but.....
Excellent rebuttal may I add one or two I don't know who is this guy Anti Matter but he apparently never take Economy 101. Let me say that Real Estate together with auto industry is the main pillar of economy even in Rich country. Why do you think we have financial crisis now yup real estate foreclosure.
China avoid the crisis by building real estate because it create job think of the cascading effect of real estate boom. it will create demand for white good, cements, electronics(TV, Stereo etc), glass, furniture, steel structure. Not to mention the direct employment like construction worker, real estate agent, mortgage processor and banking service.interior decorator, etc
It will also give people confidence as they see construction activity going all around them, By doing it china avoid the squalor, and deprivation that we see in many of the developing country while at the same time create job and spread the wealth
And as you say there will be no bubbles because Chinese bank lending practice is very conservative and they have more money than they know what to do with their money
Excellent rebuttal may I add one or two I don't know who is this guy Anti Matter but he apparently never take Economy 101. Let me say that Real Estate together with auto industry is the main pillar of economy even in Rich country. Why do you think we have financial crisis now yup real estate foreclosure.
China avoid the crisis by building real estate because it create job think of the cascading effect of real estate boom. it will create demand for white good, cements, electronics(TV, Stereo etc), glass, furniture, steel structure. Not to mention the direct employment like construction worker, real estate agent, mortgage processor and banking service.interior decorator, etc
It will also give people confidence as they see construction activity going all around them, By doing it china avoid the squalor, and deprivation that we see in many of the developing country while at the same time create job and spread the wealth
And as you say there will be no bubbles because Chinese bank lending practice is very conservative and they have more money than they know what to do with their money
antimatter
Banned Idiot
Re: In 1840, CHina has the highest GDP in the world but.....
let's do some numbers.
US GDP 14 Trillion
CHina GDP 5 Trillion
so, roughly US has a bit less than 3x sizes
US military spending 700 Billion
CHina military spending 70 Billion
From that number you can proportionately extrapolate US's Industrial-Military Complex is 10x than China's.
You can see big portion of US economy is based on that Industrial-military complex. Alot of cutting edge technology involved. China's is much smaller scale.
I haven't even factor in the commercial tech such as Apple, Google,Microsoft, and Intel which also are driving the economy.
nothing wrong with real estate but when it's the main engine of national economy then that's whats worrying.
let's do some numbers.
US GDP 14 Trillion
CHina GDP 5 Trillion
so, roughly US has a bit less than 3x sizes
US military spending 700 Billion
CHina military spending 70 Billion
From that number you can proportionately extrapolate US's Industrial-Military Complex is 10x than China's.
You can see big portion of US economy is based on that Industrial-military complex. Alot of cutting edge technology involved. China's is much smaller scale.
I haven't even factor in the commercial tech such as Apple, Google,Microsoft, and Intel which also are driving the economy.
nothing wrong with real estate but when it's the main engine of national economy then that's whats worrying.
Hendrik_2000
Lieutenant General
Re: In 1840, CHina has the highest GDP in the world but.....
Yup that is exactly the same reason why the US economy is in the dump because of excessive spending on defense. No other than august figure of General Dwight D. Eisenhower who in the 50's warn of Military industrial complex!. It is not sustainable . They can afford it because of borrow money
Have you heard the expression that you cannot eat weapon!. Building armament had no multiplier effect on the economy other than overpaying defence contractor Ever heard of $600 toilet seat?
It is the most inefficient use of resource, Soviet union implode exactly because of overemphasizing(you can say tricked) defense industry trying to compete with US on every category of weapon. Spending 40 to 50 % of Goverment expenditure on weapon production. Say where it lead to?
Using your own data defense only make 4 to 5% of US economy where is the rest come from? yup REAL ESTATE and SERVICE Industry who make up 20% of GDP
Manufacturing continue to shrink as percentage of GDP here is the link
Yup that is exactly the same reason why the US economy is in the dump because of excessive spending on defense. No other than august figure of General Dwight D. Eisenhower who in the 50's warn of Military industrial complex!. It is not sustainable . They can afford it because of borrow money
Have you heard the expression that you cannot eat weapon!. Building armament had no multiplier effect on the economy other than overpaying defence contractor Ever heard of $600 toilet seat?
It is the most inefficient use of resource, Soviet union implode exactly because of overemphasizing(you can say tricked) defense industry trying to compete with US on every category of weapon. Spending 40 to 50 % of Goverment expenditure on weapon production. Say where it lead to?
Using your own data defense only make 4 to 5% of US economy where is the rest come from? yup REAL ESTATE and SERVICE Industry who make up 20% of GDP
Manufacturing continue to shrink as percentage of GDP here is the link
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antimatter
Banned Idiot
Re: In 1840, CHina has the highest GDP in the world but.....
That's false. Industrial-military complex created alot of jobs.
US economic problem is because of the following.
1)House market price crashed. Banks are not lending. People are struggle to make payment.
2)Because Banks are not lending, businesses are folding. Because business are folding, people are laying off. Because people are laying off, more houses are foreclosing. Because more houses are foreclosing, the banks tightening even more. It's in a vicious cycle.
That's false. Industrial-military complex created alot of jobs.
US economic problem is because of the following.
1)House market price crashed. Banks are not lending. People are struggle to make payment.
2)Because Banks are not lending, businesses are folding. Because business are folding, people are laying off. Because people are laying off, more houses are foreclosing. Because more houses are foreclosing, the banks tightening even more. It's in a vicious cycle.
antimatter
Banned Idiot
Re: In 1840, CHina has the highest GDP in the world but.....
Because US has its great industrial-military complex at its hand, it can have the option of fighting a war to come out of recession like WWII.
An real estate based economy country will not have such option. It has to come of recession through its economic measures if there's one.
Notice the keyword here is Option.
Because US has its great industrial-military complex at its hand, it can have the option of fighting a war to come out of recession like WWII.
An real estate based economy country will not have such option. It has to come of recession through its economic measures if there's one.
Notice the keyword here is Option.