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How China Overtook Us And Cracked The Top Four

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How China overtook us and cracked the top four

The country's swift rise up the world's rankings does not stop here. Goldman Sachs estimates it will take only 35 years for China to become the world's largest economy.

It is hardly surprising. China has taken on Britain's 19th- century mantle of "the workshop of the world". It has 160m workers in its factories, almost three times the UK's total population. It pays an average of 34p an hour, just 7pc of our minimum wage.

Amd the last para:

Meanwhile, poorer countries become more competitive. It can happen to anyone. China's bicycle manufacturers, for example, have been facing cheap competition from countries such as Vietnam, as well as bans on bikes at home. The Shenzhen China Bicycle Company filed for bankruptcy four months ago.

Weird times. China under competition from Vietnam?

Let's hope China develops a service economy of its own soon, or Asia will have its own trade war...

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at the end of the day. if you copy everything on the planet and have an army of 2 billion worlers produce it for next to nothing under a communist model. then i am sure it will attract the gunslinging manufacturers like bees to angel delight.

BUT.

the chinese are not going to work like shirehorses for nothing - forever. and be squashed flat by pla tanks.

there will come a time when they want the benefit of the work back. and so they will improve their inner standard of living which will check the progress of the economy globally.

granted, i think they are now and probably always will be a major player in the globe. they wont be sucking up everything like a hoover. ingenuity and invention/development are key and i feel a balance will evolve over the next 20 years.

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The bit that I liked was this,

"Yesterday, the finance ministry decided to abolish capital gains tax for foreigners in order to lure cash in"

Now, I don't know just how beneficial that is in the grand scheme of things, but it sounds like the global capitalists dogs will be humping themselves to throw money at China, rather than invest it in good old Blighty.

But at least it will probably be our pension funds money and some of the profits should come back to us.

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The bit that I liked was this,

"Yesterday, the finance ministry decided to abolish capital gains tax for foreigners in order to lure cash in"

Now, I don't know just how beneficial that is in the grand scheme of things, but it sounds like the global capitalists dogs will be humping themselves to throw money at China, rather than invest it in good old Blighty.

But at least it will probably be our pension funds money and some of the profits should come back to us.

That's all well and good.....but as a Daily Mail reader...what I want to know is............Will It Affect The Price Of Houses :D

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How China overtook us and cracked the top four

Amd the last para:

Weird times. China under competition from Vietnam?

Let's hope China develops a service economy of its own soon, or Asia will have its own trade war...

hah! Peak Oil (or at least permanently less cheap oil) will stop these foreign johnnies in their tracks!

we will make sure that they go hungry by eating all the food in the pantry before they grow strong enough to challenge us!

Western Civilisation: consuming tomorrow's wealth today... B)

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What perhaps hasnt been recognised by a number of people is that if China wanted to wage "war" to become the next superpower on this planet how better to do it than economically? Its perhaps the biggest honey trap going. A scarey thought!

This may explain how willingly Western political leaders seek to embrace and encourage "globalisation".

Recognising the potential of China and others their view may be that to inextricably interlink the economies of these countries with those of the West is the safest way of ensuring that military conflicts on a grand scale can be avoided.

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The loss of Britain's manufacturing business is a natural stage of development. As countries get richer, they need fewer factories. There are only so many goods to buy and rich people tend to spend more of their money on services.

This is the point a lot of you seem to be ignoring.

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Highly unlikely to be pension funds as UK rules dictate that virtually all pension funds have to be invested within the UK.

That seems unlikely. I am with Scottish equitable and I have most of my money in overseas funds e.g. Japan.

frugalista

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So it will outstrip the UK to become the 4th largest economy. How much more evidence do we need to know that we are no longer the the world power that many in the UK seem to think we still are? For all those Eurosceptics this is a good reason why it makes sense to be a member of a club that has much more clout than its individual countries.

What has amazed me is not so much the size of China's domestic economy, but its interactions within the third world. Brazil is a major supplier of soya -- to feed the animals that feed the Chinese. And we wouldn't help in Darfur because of the support the Chinese give to the Sudanese Government. And similarly for Mugabe -- the Chinese have been keeping him in power.

Their massive demand for oil (they are now a net importer) has them eyeing the countries of Central Asia. Is it no wonder the US wants to have a presence there? It is no just Iraq they have their eyes on but the Caspian sea, and if China gets all the oil it could easily have a major impact on the US economy.

Global politics can only get more interesting. It is fascinating -- and frightening.

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we wouldn't help in Darfur because of the support the Chinese give to the Sudanese Government. And similarly for Mugabe -- the Chinese have been keeping him in power.

A ) We DID help in Darfur.

B ) I can, however, understand if we hadn't because as you say China is very friendly with the Sudanese government because of the country's oil wealth.

C ) What does Zimbabwe have that China wants?

Their massive demand for oil

Let's get some perspective here. China consumes a "massive" ( :rolleyes: ) 5.6 million barrels per day, with a population of 1.3 BILLION. That's a per capita oil consumption of 0.0043 barrels of oil per person per day. By contrast the US, with a population 4 times less than China, consumes 4 times MORE oil per day, at 20 million barrels per day, with a per capita oil consumption of 0.066 barrels per person per day; that's TEN times higher per capita consumption than China.

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But isn't that surely the point -- the US is not the only economy with a large demand (ok, it's not massive compared to the US, but it is still big). The shuffling for power in Central Asia is about several things:

* Russia wanting to regain influence

* the Central Asian states wanting to preserve their freedom

* the US wanting supplies from countries that are not aligned with OPEC (hence reducing oil price volatility), and are seen as 'friendly'

* and China wanting to give itself access to secure flows of oil.

The BTC pipeline (from Baki in the Caspian to Ceyhan in the Med) is America's attempt to get the oil flowing Westward. But Iran has plans for a pipeline from the Caspian to the Indian Ocean, opening this up to the East. This is only being stopped at present by sactions against Iran and US pressure on oil companies, both US-owned and non-US companies in the form of threats.

Now put Iraq into the picture -- oh my, so the war was about oil after all.

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What perhaps hasnt been recognised by a number of people is that if China wanted to wage "war" to become the next superpower on this planet how better to do it than economically? Its perhaps the biggest honey trap going. A scarey thought!

japan tried to do this in the 80s and ultimately failed - economic might was not matched geopolitical influence. the same could happen with china.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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