Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (4181)	1/15/2005 11:28:21 PM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

Chao: China takes bigger strides on world stage Julie Chao, COX NEWSPAPERS INTERNATIONAL STAFF AdvertisementSaturday, January 15, 2005 BEIJING — The $1.75 billion dollar deal that gave IBM's PC business to Chinese computer-maker Lenovo was peanuts in the realm of Wall Street mergers. But for China's hopes of transforming itself from the world's sweatshop to a global powerhouse, it was a coup. And it's a sign of things to come. Chinese companies are increasingly staking out a presence in the international marketplace, from acquiring foreign companies to sponsoring American and European sports teams and aggressively marketing their brands directly to consumers worldwide. Their goal: to be multinational companies as recognized as Coke and GE. It's not the only way in which China is raising its profile in the world's marketplace. A landmark deal it signed with the Association of Southeast Asian Nations in November creates an open Asian market of 1.8 billion people by 2015 and is further proof of China's growing economic and political clout in the region. From Bangkok to Seoul, young people increasingly see their futures tied to China and are choosing to learn Mandarin rather than English. Language schools in Beijing are seeing record numbers of foreign students. China's economy will continue to steam ahead, projected to slow down only slightly in 2005 from its blistering 9 percent growth rate in 2004. It continues to devour the world's resources — one-third of the world's steel output, 40 percent of the cement supply and about one-third of all coal. Vast flocks of construction cranes are common sights not just in the major cities of Beijing and Shanghai, but in many second- and even third-tier cities as well. While it is re-shaping its own economic landscape, as well as that of countries around the world, China has become a rising diplomatic force. Beijing has taken a major role in trying to resolve the crisis over North Korea's nuclear program and is cooperating closely with Washington, even as some in the Bush administration criticize it for not doing enough. Next year, China will continue to push Pyongyang back to the negotiating table after three rounds of talks in Beijing made little progress. Yet while China's unprecedented economic expansion has put cell phones and personal cars within grasp of millions, and as young Chinese professionals take coffee breaks at Starbucks and vacations in Thailand, hundreds of millions more are being left behind. The migrant workers who build the skyscrapers see their wages depressed and even withheld. Their farmland back home is being seized by corrupt local officials who build golf courses or villas and offer them little or no compensation. Many workers, once coddled by the socialist system, have been laid off from unprofitable state-owned enterprises and suddenly find themselves without any safety net or discover their pension funds have been robbed by managers. Such injustices leave millions seething and with nowhere to turn. More and more, they are taking their grievances to the capital and staging strikes, sit-ins and other acts of protest. The communist government has stated that social stability is its top priority. But the honeymoon is over for President Hu Jintao, even as he consolidates his power after the recent retirement of Jiang Zemin as military chief. Large and even violent demonstrations are becoming more spontaneous, sparked by the tiniest incident, such as an argument over a road toll, and involving vastly larger numbers of people. It is an indication of the disaffection bubbling just below the surface, and many analysts fear it will boil over one day and explode into something that could threaten the party's leadership. Initial hopes that the relatively youthful Hu would gradually loosen authoritarian controls and enact much-needed political reforms have been dashed recently with a fresh crackdown to rein in outspoken intellectuals, the media and the Internet. Don't expect a velvet revolution in China next year. Meanwhile, rapid industrialization has caused severe environmental damage, choking rivers and lakes and turning the air toxic. China's neighbors have already started to feel the effects, and the problems will only worsen given its growing need for energy, water and other natural resources. jchao@coxnews.com statesman.com