Chinese Economics Thread

[Martian]

Africans welcome China's growing economic power

The Beijing summit of the Forum on China-Africa Cooperation in November 2006 brought together more than 40 leaders and heads of state from Africa. (Photo credit: Xinhua)

"China’s total trade with Africa in 2008 surpassed the US$100 billion trade target set for 2010 at the 2006 Forum on China-Africa Cooperation (FOCAC)."

China-Africa friendship

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"China to forgive half of Africa rail debt
Updated: 2011-01-20 10:58
By Wang Qingyun (chinadaily.com.cn)

Chinese Vice-Minister of Commerce Zhong Shan signed an agreement with counterparts from Zambia and Tanzania in Lusaka, Zambia's capital, on Jan 19, to forgive 50% of the debt from China to build and operate the Tanzania-Zambia railway.

The Chinese government took the action because of the traditional friendship between China and Africa, and Chinese people want to do their best to support African people's development, said Zhong at the signing ceremony. He also said the Chinese government hopes the railway will operate with less debt and boost the regional economy and benefit the two countries.

China helped construct the Tanzania-Zambia railway at the request of the leadership of Tanzania and Zambia in 1970, and handed it over after its completion in 1976. The Chinese government provided an interest-free loan of 988 million yuan to complete the project, and continued to provide such loans and technicians to ensure its operation.

[The 1,860-km railway, which took over 50,000 technicians and workers seven years to complete in 1975 and was handed over to Zambia and Tanzania in 1976, was one of China's largest foreign aid projects and is considered as the emblem of China-Africa friendship.]"

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"Africans welcome China's growing economic power
Sun Mar 27, 2011 10:30pm GMT

LONDON, March 27 (Reuters) - The prospect of growing Chinese economic clout is welcomed in all African countries, in contrast to other parts of the world where attitudes are either negative or divided, a poll showed on Sunday.

Asked how they view the possibility of an economically far stronger China, around four in five Nigerians and Kenyans said they looked forward to such an outcome, according to the survey of more than 28,000 people in 27 countries commissioned by the BBC World Service.

"All African countries view China's increasing economic power positively," the survey report said.

Sub-Saharan Africa was also home to the very few countries worldwide where most people would be happy about China boosting its military might.

China is investing large amounts of money and technical expertise in African countries, seeking a reliable source of raw materials to sustain its economic growth.

Globally, half of all respondents favoured the prospect of a wealthier China and only a third believed it would be unwelcome. The split was little changed from the previous poll in 2005.

However, in North America, the majority would view such a development warily, and more so than six years ago.

Unfavourable views of China's economic influence rose in neighbouring Japan, South Korea and Russia.

Overall, people expected China will be a more important economic partner to their respective countries than the United States or the European Union in 10 years.

Interviews were conducted between December and February. (Reporting by Olesya Dmitracova)"

 

[bladerunner]

Re: Africans welcome China's growing economic power

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[Schumacher]

Re: Africans welcome China's growing economic power

..........
LONDON, March 27 (Reuters) - The prospect of growing Chinese economic clout is welcomed in all African countries, in contrast to other parts of the world where attitudes are either negative or divided, a poll showed on Sunday.

Asked how they view the possibility of an economically far stronger China, around four in five Nigerians and Kenyans said they looked forward to such an outcome, according to the survey of more than 28,000 people in 27 countries commissioned by the BBC World Service.

"All African countries view China's increasing economic power positively," the survey report said.

Sub-Saharan Africa was also home to the very few countries worldwide where most people would be happy about China boosting its military might.

China is investing large amounts of money and technical expertise in African countries, seeking a reliable source of raw materials to sustain its economic growth.

Globally, half of all respondents favoured the prospect of a wealthier China and only a third believed it would be unwelcome. The split was little changed from the previous poll in 2005.
............

Little surprise with the African findings. Given this is by BBC, safe to say the true global figure is also likely to be greater than half.
This basically says that reservation of China is higher in the west which suffer from heavy doses of brain washing by the media and those like Russia which have some historical rivalry with China.
While in the rest of the world with more independent media reporting of China, there are favorable views of China.

 

[bladerunner]

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Tensions are growing between BRIC countries Brazil and China.

When President Lula Da Silva took office in 2002 he made relations with the People’s Republic of China (PRC} one of his main foreign policy priorities. In the past decade relations between the quasi super power and the South American giant have expanded beyond anyone’s expectations. In April 2009 China became Brazil’s largest trading partner after 85 years of American dominance with trade between the two nations reaching $36 billion. Both countries have cooperated in very sensitive technology sectors launching four jointly developed satellites. In 2009 Chinese navy pilots began training at the Brazilian aircraft carrier Sao Paulo in preparation for the deployment of China’s first aircraft carrier.

In 2010 the Chinese government granted Brazil a $10 billion loan to assist in the development of the new discovered Tupi oil fields in southern Brazil. Chinese companies have won very lucrative contracts in Brazil in areas such as infrastructure, telecommunications and the service sector with Chinese FDI reaching $17 billion in 2010. China as also invested over $2 billion in the steel industry. In August 2010 China’s steel giant Wuhan Steel & Steel pledge to invest another $5 billion in the country’s steel sector. In 2009 Brazilian agricultural exports to China reached $4.8 billion making Brazil China’s main source of such imports. The economies of both countries seem to have a great degree of complementarity and offer both countries ample opportunity for mutual benefits.

Both countries grew also increasingly close politically supporting each other’s position in issues such as the world trade regime, human rights, UN reform and climate change. In 2009 in the wake of the world economic crisis and a weakening American dollar, both countries signed a currency swap agreement under which both nations pledge to increasingly conduct their bilateral trade in their respective currencies. China is quite keen on reducing the influence of the US currency and Brazil seems to share the same desire. Both countries have challenge the United States and its allies on issues such as Iran and nuclear proliferation and have cooperated very closely on the transfers of nuclear technology. Meanwhile Brazilian companies such as mining giant Vale and aircraft manufacturer Embraer have invested heavily in China. In 2004 an enthusiastic President Lula said: "China and Brazil don't have overwhelming muscle, but by cooperating they do improve their position."

This growing economic and political interaction between the two giants led some observers to conclude that a growing political alliance was being forged between two raising powers to balance American global influence. While indeed Sino-Brazilian ties have witnessed a remarkable increase closer scrutiny shows that things are far more complex.

Sino-Brazilian relations benefited enormously from the personal enthusiasm of long serving Brazilian foreign minister Celso Amorim and President Lula. Amorim confronted serious reservations and opposition from the Brazilian political establishment and the business sector who feared the negative impacts of Brazilian recognition of China as a free market economy and opening of Brazil’s market. The Brazilian business sector has been highly critical of the country’s trade policy towards China. Brazilian steel manufactures complain that Brazil has been naïve at opening its markets to China while so far China as failed to reciprocate, Since 2005 Brazil has lodge 140 anti-dumping complains against China at the WTO .

Brazilian textile manufacturers have been hard heat by Chinese cheap imports and the once thriving sector is struggling to survive. Joze Gomes da Silva, president of the Brazilian Textile Association complains: “The openness of the Brazilian economy can't just lie on opening imports to every country while not getting anything in return”

Many in Brazil resent the “neo colonial” nature of the relationship, there seems to be an asymmetric dimension to Sino-Brazilian ties witnessed in the nature of bilateral trade. While Brazil exports to China some high-end manufactures such as aeronautics and gas turbines most of the country s exports to the PRC consisted of primary goods and energy resources. Agriculture products account for 70 percent of Brazilian exports with timber and minerals accounting for over 20 percent. While China exports to Brazil low to mid end manufactures such as TVs, phones, textiles and machinery.

The opportunities offered by the large Chinese market to Brazilian companies were expected to offset and compensate for losses cause by Chinese penetration of the Brazilian economy. However, argue the critics excessive Chinese protectionism had made it very difficult for Brazil’s companies to operate in China. For instance the much acclaimed joint venture between Brazil’s aeronautic company Embraer and China’s Harbin Aviation Industry for the production of a middle size jet liner is now marred in controversy. The joint venture was to benefit both sides by allowing China to obtain the technology no Western nation is willing to share, while Brazil would benefit from a promised order of 1,000 planes. Embraer officials interviewed by the author on the condition of anonymity complain that by 2009 China had made far fewer orders than originally promised and was instead producing its own plane with Brazilian technology

The Brazilians also accuse the Chinese of having lured them with the promise of big sales to the growing Chinese domestic aviation market to get their technology and then left them in the cold. In 2008, Embraer sales were so low that the company seriously considered terminating its operation in China after just four years of presence. Tensions were aggravated when in April 2010 an Embraer jet fall in China killing 42 people. The Chinese authorities accused the successful Brazilian manufacturer of low quality controls. Irate Embraer official pointed out that its planes are being used in far large numbers in Europe, the United Sates and Australia and so far have had no problems. The Brazilians in turn pointed to China’s dismal maintenance and safety record.

Brazil is also growing increasingly uneasy at China’s growing penetration of Brazil’s traditional markets in South America. In 1995, Brazil exported $5.7 billion in industrial goods to the region while China exported $1.4 billion. In 2004, China had exported $7.8 billion while Brazil’s exports were $6.5 billion. The fact that cheaper Chinese imports are quickly replacing Brazilian products in neighboring countries further exacerbates concerns from Brazilian business interests. For instance, in 2003 88 percent of Argentina’s TV sets imports were from Brazil, while China accounted for a mere 1 percent. In 2009 Brazilian TVs accounted for 37 percent while Chinese imports reached 42 percent. In recent years the trade deficit between the two countries has been on the rise in 2010 Brazilian exports to China fall 3 percent while Chinese exports to Brazil grew 89 percent.

Sino-Brazilian competition is now fast spreading to former Portuguese Africa where Brazilian companies are now faced with a surge in Chinese investments. Brazilian mining giant Vale is aggressively competing with the Chinese in coal rich Mozambican Since 2009, Vale invested $1.3 billion in coal mines in the central provinces of Zambezia and Tete, while Chinese steel giant Wuhan Steel & Steel has invested a $1 billion. Brazil has been investing heavily in oil rich Angola where China is now the largest trading partner of that nation. In 2008 the director of the Brazilian state investment agency denied reports of Brazilian and Chinese competition over resources in Africa. During President’s Lula da Silva visit to Africa in July 2010 the Brazilian newspaper Globo ran a story entitled “Lula exacerbates competition with China” in which it describe the growing tensions between the two giants.

In February 2011 Brazilian media reported that the government was planning to introduce protective legislation to safeguard the steel and mining sector in the country. Among the legislation are laws establishing limits for foreign investment in certain sectors of the economy and laws establishing quotas forcing foreign companies to meet domestic market needs. The media reports clearly state that these measures were directed mainly at China. In November 2010 in a long interview with the Brazilian newspaper Estadao Amorim, the main architect of the Sino-Brazilian partnership, said that Brazil needed to rethink its relationship with China. After carefully nurturing this important relation one of Brazil’s longest serving foreign ministers and one of its most brilliant thinkers seemed to be consumed with doubts and regrets.

Despite all the tensions there are still many benefits that both countries have and will continue to take out of these relation. For instance Chinese agriculture imports are crucial for Brazil’s economy in light of of protectionist policies in the United States and Europe. Brazil needs Chinese capital develop its new oil fields and is likely to side with China in many international issues such as climate change and international negotiations trade.

However, one thing seems to be certain the enthusiasm for an alliance between two developing world giants to counter the United States seems to be dead. Sino-Brazilian relations are likely to be marked by pure pragmatism as the ideological idealism of the Lula administration seems to have been badly misplaced. When Obama visited Brazil in March he was warmly received with the tone of the visit being quite conciliatory and diplomatic.

Brazil thought of using China to balance the United States, but it may now need the United States to balance China. In October 2010 -- in perhaps an indication of the current state of relations -- a friendly basketball game between the Chinese and Brazilian national teams ended in a massive brawl. As the Brazilian saying goes:

“Amigos amigos amigos , negocios a parte (There is no such a thing as friendship in business)”

The Chinese seems to understand this better than the Brazilians

Loro Horta is a graduate of the People’s Liberation Army National Defense senior officer’s course and the Chinese Ministry of Commerce Central School. He is also a graduate of the United States National Defense University and is currently pursuing further studies at the US Naval Post Graduate School.

 

[Blitzo]

Lol, so basically not only is China taking advantage of the developed world, but they're also screwing the developing world over!
>_>
<_<
There are tensions between the two countries, yes, but nothing unresolvable like the sino-american relationship.

 

[bladerunner]

Lol, so basically not only is China taking advantage of the developed world, but they're also screwing the developing world over!
>_>
<_<
but nothing unresolvable like the sino-american relationship.

LOL All of a sudden, Donald Sutherlands comment about negativity to his men in "Kellys Heroes" came to mind.

SEriously I think Brazil has a greater percentage of its population earning less than$2 a day then China.

 

[AssassinsMace]

If Brazil is upset at China then break off relations. It's that simple. They must be getting something out of it if they choose not to break relations. Maybe it's the "China has a gun to my head" excuse again. But then that article comes from Florida... full of politically motivated right-wing anti-communist latins. I'm sure someone told them to write such a story in that way. Why? Again, if it's so negative then break-off relations.

 

[Martian]

Chinese Superbikes! Which one would you choose?

Lifan LF200 GS Sport Bike

Zongshen ZS250GS Sport Bike

 

[Schumacher]

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Tensions are growing between BRIC countries Brazil and China.
..............

Still resorting to cherry picking I see. Like I told you before, the internet, and definitely Brazil, is a big place. You can always find 'opinions' to suit your wishful thinking if you try hard enough.
Instead of looking at opinions and spins, here's a piece of fact to show how 'tensions are growing between Brazil & China'.
The new Brazilian president making China her first official foreign visit outside of South America.

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"On Friday 18 February 2011, 23:08 SGT

Brazilian President Dilma Rousseff will visit China April 13-15, first in a bilateral capacity then to take part in a BRIC summit, her foreign minister, Antonio Patriota, told state television Friday.

"The relationship with China is increasingly important for Brazil," he said.

China is Brazil's principal trading partner and top foreign investor, buying up iron ore, soya products and other raw materials to fuel its dynamic economy, and extending credit to get privileged access to Brazilian oil.

The demand largely underpins Brazil's own economic performance, though unease is building over foreign exchange policies which have seen Brazil's currency, the real, soar against the US dollar and the Chinese yuan......................."

 

[kroko]

Report about China´s SOE

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Its true that the author is viewing the situation from the standpoint of US companies. But lets face the fact. It is not good that state companies have so much weight in any economy. They are inefficient compared to true private companies. I understand the fact that china wants to cultivate national champions, they want to compete with multinationals. But it creates distortions and inefficencies in the economy. Too much investment creates bubbles. They should give more to chinese households. that way, the economy would rebalance more.

But i think that there are too many vested interests for its economy to rebalance. For how long will this situation last before it becomes unsustainable? and what will the consequences be when that happens?


Oh. And dont come to me saying that this article is BS. At least for once admit that china´s economy is unbalanced. Even their leadership says so.