Author: raymondusa

Beijing's leverage over Taiwan [Copy link] 中文

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Post time 2006-2-8 09:49:05 |Display all floors
vincelee:

Who are you kidding?  Taiwan is very much dependent on exporting to China as the financial numbers clearly show.  Get your facts straight since I’m more than capable of using the facts to correct your uninformed claims and assertions.  I already posted the financial trade numbers, and the economies of both US and China.  If Taiwan could invest elsewhere in a large way, they would have done that.  They cannot since they are too dependent on China (See the export numbers to China).  There are plenty of people who know and share the facts, and allow it to support their arguments.  Share your facts, and not your assertions and claims.  You are welcomed to verify my facts as posted here, and try to prove me wrong, since the facts are verifiable.  I have no need to assert and claim things, when I already have the financial facts, and an intelligent person should be able to read and understand what those numbers mean in defining the leverage of China over Taiwan, and USA.

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Post time 2006-2-9 11:37:07 |Display all floors

Beijing's leverage over Taiwan

China will become stronger and stronger ,there is no doubt.However,in the process,hardship stand behind us.We should try our best to overcome it.        

                                                                                       
                                                                                                                                                     
                                                                                                                                                     
                                                                                                                                                     

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Post time 2006-2-10 06:57:40 |Display all floors
sacto11:

There is a big difference between Thailand and China.  China has huge domestic savings ready for consumption, and on pace for the largest currency reserves in the world, enough reserves to move interest rates, and move markets.  One reason it has no problems attracting FDIs is because of its domestic savings as many countries are eyeing the consumption wave!  Thailand doesn’t have that!  It’s a great idea for you to study the financial and economic facts before you make such an ill-advised comparison.   

Secondly, it’s not only about cheap labor.  If all these countries that want into the Chinese market were only interested in cheap labor, they could go elsewhere now to just get even cheaper labor.  Do you know that China doesn’t even have the cheapest labor market since it too outsource some of the assembly work?  

Transforming an agriculturally based economy, into a diversified industrialize economy takes time.  There are Chinese people who are ill equipped to make this transition and one can characterize it as transition pains.  With changes come people who benefit, and others who do not!  That’s life.  No one is saying that China is perfect.  But when you look at the big picture of economic success and more people uplifted out of poverty, the Chinese government has delivered some pretty impressive results, the kind of overall results that many countries can only wish it had too!      

To answer your question, “What will they do?”   China must be doing many things right to enjoy the type of results they currently have!  How many other countries would love to have only a percentage of similar success?  I say to China, “Continue doing what you are doing, and don’t allow complacency to sidetrack success.”

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Post time 2006-2-10 08:55:12 |Display all floors
sacto11:

To say China and Thailand are exactly the same, is ignorance of the highest order.  If labor were only the reason, China wouldn't be first at attracting FDIs since there are cheaper labor markets.  There isn't another country that has over 40% GDP domestic savings.  Vertical percentile analysis already takes into account the size difference of the two economies.  Get your facts straight!   

Since you cannot intelligently analyze the financial and economic problems vexing Taiwan, I must wonder if your omission is by ignorance, or purposeful obfuscation?

Simple obvious question for you:   If there are so many other options for other countries to invest in, that offer the same benefits of domestic consumption from huge savings like China, why don't they invest largely in those countries, NOW?

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Post time 2006-2-10 09:07:54 |Display all floors

That's inflation!

sacto11,  you claimed that

" in california, i bought a house for 180,000 5 years ago, now the listing price is 599,000. "

I would consider it, based on your calculation, that the realty market in California is facing a serious bubble.

boy, may I suggest you sell your property now, immediately, and buy another cheaper house, say in Dalles, Texas, and you are making Big Bucks.

[ Last edited by chinadaily at 2006-2-10 09:12 AM ]

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Post time 2006-2-10 09:37:55 |Display all floors
sacto11:

Yes, countries do invest elsewhere, but not at the numbers that they do in China (first in FDIs).  That should give you pause to think why?  If it was only about cheap labor as you try to assert, there should be a more equal distribution of investment all around the world.  But there isn't an equal distribution, so there must be other reasons why many countries in the world are choosing China, and not Taiwan.

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Post time 2006-2-10 11:33:28 |Display all floors

I know, I know

"so there must be other reasons why many countries in the world are choosing China, and not Taiwan. "

....br1bes?

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