China's Economy Roaring

The Economist article "China's economy: Still roaring: But China's economy will quiet down this year."{

ROSS PEROT, a populist American politician, predicted in the early 1990s that a trade pact with Mexico would create a ‘‘giant sucking sound’’ as jobs headed south. Instead, America experienced full employment. So giant-sucking-sound detectors turned to China. In time, China became the workshop of the world, although by then America had long hollowed out much of its manufacturing.

Now there really is a giant sucking sound—not one made by the flight of jobs, but by China ferociously hoovering up commodities and raw materials. Although it accounts for roughly 4% of global GDP (measured at market exchange rates), China consumes 30% of the world’s supply of minerals and other raw materials. This time around, the world has not only heard the sucking sound, but has also felt its effects, as the prices of commodities such as iron ore, copper and zinc have soared, doubling or tripling in just a couple of years.

How has China suddenly developed such a big appetite? The economy has been growing at a dizzying rate, recently by double digits. Much of this growth is driven by fixed-asset investment, which now accounts for more than 50% of GDP a year—a higher proportion than that of any other country at any time in history. This relentless capacity for expansion has created an insatiable demand for raw materials....

Comments

[christian louboutin sale]

with Mexico would create a ‘‘giant sucking sound’’ as jobs headed south. Instead, America experienced full employment. So giant-sucking-sound detectors turned to China. In time, China became the workshop of the world, although by then America had long hollowed out much of its manufacturi

[louboutins]

which now accounts for more than 50% of GDP a year—a higher proportion than that of any other country at any time in history. This relentless capacity for expansion has created an insatiable demand for raw materials....

[christian louboutin]

‘giant sucking sound’’ as jobs headed south. Instead, America experienced full employment. So giant-sucking-sound detectors turned to China. In time, China became the workshop of the world,