China the next leading economy?
Welcome to my blog guys!
I’ve never written a blog before and i can tell you it’s hard to begin. So let me begin by introducing myself…..
My name is Arlanco van Haeften and I’m 21 years old. This is my fourth year of Commercial Economics in Amsterdam, and the reason why i write this blog. I just bought a Playstation 3 so i have better thing to do than blog, but well… it has to be done. Alright, let’s start.
This week my blog is about Emerging Markets and a video related to this subject. The link to this video is right here –> http://www.youtube.com/watch?v=T1dDIrOCbUo&feature=related
What if China collected on U.S dept? And why don’t they?
I’m not a professional economic so it’s just guessing for me. But what I think why China doesn’t collect on U.S dept is because they want to keep their position in the world economy. Why change a winning formula? China’s unique selling point is their cheap production in large quantities, and they want to keep this position in the world. If China would change their U.S dollars to Yuan (Chinese currency), the Yuan will increase in value. Inflation would make the Chinese products cost more for the rest of the world, and they would their ‘cheep’ advantage.
But is this all ethical? Chinese children go to class with their winter jackets on, because the school doesn’t have central heating. Millions of Chinese people live in great poverty, and China has 798.9 billion U.S dollar they just don’t use???
Whether they want a leading position in the world or not, I don’t think their ready for it. China has to take responsibility for its own people and take care of it, before thinking of a leading position in the world. But I guess China likes its position in the world right now, and I don’t think this will change in a couple of years.
Hopefully I’m right in the last bit and China won’t be a leading economy in the next few years, because I don’t feel like learning Chinese I rather play on my Playstation……