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To: RealMuLan who wrote (36771)	10/25/2004 4:20:02 PM
From: abuelita	Respond to of 104155

i'm sure there is a lot more that could be added to that list.

To: RealMuLan who wrote (36771)	10/26/2004 10:41:59 PM
From: abuelita	Read Replies (1) \| Respond to of 104155

yiwu- more on china .. In their 1999 seminar treatise entitled Unrestricted War: China's Master Plan to Destroy America, they state that the aggressor nation "must adjust its own financial strategy, use currency revaluation or devaluation as primary weapons, and combine means such as getting the upper hand in public opinion and changing the rules sufficiently to make financial turbulence and economic crisis appear in the targeted country or area, weakening its overall power, including its military strength." China's world takeover edges closer Michael Campbell Vancouver Sun October 26, 2004 Three years ago I first wrote that we'd better get ready with an answer to the question, "Where were you when China took over the world?" Given that both national newspapers and The Vancouver Sun all ran stories on the weekend chronicling China's rise, maybe we're getting ready to answer that question. As regular readers of this column know, I am not a johnny-come-lately to the China story. In May, 2001, I wrote about the opportunities in Canadian resource stocks that would be propelled by Chinese demand for commodities. I also noted the deflationary pressures exerted by low-cost Chinese manufacturing exports. Experienced investors know that you don't make money investing in Page One stories. By the time it hits the front page, it's usually a sign that a top is forming. Maybe the China story is about to take an unexpected turn. I wonder if, within the next 20 years, we'll regret that China became the poster child for the power of market-based capitalism. In one of the great ironies of the last generation, so-called capitalist countries, like Canada, have become increasingly anti-business at the same time China's Communist Party embraced private enterprise. China has lowered corporate taxes to attract investment capital while decreasing regulations to help businesses operate. They have privatized thousands of state-run businesses. The Communist Party even went so far as to change the party's constitution to usher in the "new era of Chinese capitalism." According to the United Nations, the shift to a market-oriented economy has helped 160 million Chinese raise themselves from poverty. And with the elevation of Hu Jintao to the presidency and leadership of the Communist Party, the trend will continue. But what does it mean to have China fast becoming the largest economy in the world? It means a continued massive restructuring of the world's manufacturing sector. Even a significant revaluation of the Chinese yuan, which has been pegged to the U.S. dollar since 1995, won't make a significant difference to China's ability to produce low-cost goods, largely because wages are as low as a dollar a day. I've said in the past that the biggest economic impact will be felt when China starts to export the cars it manufactures. Currently, high-end luxury models sell for as little as $1,300 US per car in China. The long-term impact of Chinese demand on oil prices should continue to be significant, but the country will also need to develop alternative sources of power, which is why I like uranium stocks as China enhances its nuclear power capacity. While most economic trends are already in place, I'm also fascinated by the military implications of a stronger China, especially in light of the writings of People's Liberation Army Colonels Qiao Liang and Wang Xiangsui. In their 1999 seminar treatise entitled Unrestricted War: China's Master Plan to Destroy America, they state that the aggressor nation "must adjust its own financial strategy, use currency revaluation or devaluation as primary weapons, and combine means such as getting the upper hand in public opinion and changing the rules sufficiently to make financial turbulence and economic crisis appear in the targeted country or area, weakening its overall power, including its military strength." You'd be forgiven for wondering if the seeds to that approach are being planted today. Michael Campbell's Money Talk radio show can be heard on CKNW 980 weekdays from 6 to 7 p.m. and Saturdays from 8:30 to 10 a.m. © The Vancouver Sun 2004