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To: smolejv@gmx.net who wrote (59035)	1/17/2005 2:10:04 AM
From: Seeker of Truth	Read Replies (3) \| Respond to of 74559

D.J. China has two ways to get away from the excessive dependence on sales to the US consumer market. One is to increase sales to non-US countries. This is happening, gradually. The other way is public works, e.g. roads, reforestation, ports, railroads power stations etc. There is a possibly acute short term problem, depending on when the US consumer is forced out of the market place. That will be a great time to buy China shares, I suppose MB

To: smolejv@gmx.net who wrote (59035)	1/21/2005 5:16:15 AM
From: elmatador	Read Replies (1) \| Respond to of 74559

If that wasn't what you were talking about you are perhaps missing the point: <Euroland would love to embrace China in a G-7 like GENTLEMEN's club and reconstrcut a Breton Woods Agreement type of arrangement to a limited number of countries own benefit and to the detriment of everybody else. Japan did. But the Chinese animal harbors deep suspitions that they will be taken for a ride>> Message 20954694 G7 reform takes shape with five 'guests' 4 Hour,28 minutes Ago [US News]: WASHINGTON, By inviting five of the most rapidly developing countries for talks next month, the Group of Seven powers may finally acknowledge the shifting world order and its limitations as an effective global economic council. British Treasury sources said on Thursday that ministers from India, Brazil and South Africa have been invited to join G7 finance chiefs for breakfast talks in London on Feb. 5 at the first of four G7 financial meetings held every year. China will also make its second appearance at the meeting, and Russia is expected once again to send its finance minister, a regular attendee on the fringes of G7 in recent years. Experts say Britain, in the chair of the G7 this year, is likely to have sought the invitations to bolster its attempt to focus the Group in 2005 on fighting poverty, its poor-country debt-forgiveness plans and climate change. But economists said the five "guests" at the table will also serve longer-term interests seeking reform of the Group into a more representative and inclusive world economic body. Pressure has been building for years for an expansion or reform of the rich nations' club. The rapid emergence of China as an economic and financial powerhouse intensified the calls. Experts have warned about the waning credibility of G7 -- now the United States, Japan, Germany, Britain, France, Italy and Canada -- in solving crises in global payments and currency relationships and in fighting world poverty or climate change. The biggest critics describe the G7, famed in financial markets for dramatic bouts of coordinated currency intervention in the 1980s, as a relic of a bygone era. The G7 had its roots in the mid-1970s as an informal gathering of world leaders to discuss the economic crises of the day such as the breakdown of the Bretton Woods fixed currency system and inflationary oil shocks of the decade. "There is a realisation that G7 doesn't reflect the global power reality any more," said Avinash Persaud, investment director at asset managers GAM. "The global powers today probably represent the G7 plus India, China, Brazil and Russia, and the G7 is trying to engage those parties." China's controversial policy of pegging its currency to the dollar, and its accumulation of vast stores of U.S. government debt as a result, have already made it a critical player in resolving current imbalances in world accounts. Speculation about when China might loosen that peg, as it has promised, is intense. The response of much of the rest of Asia, where an increasingly integrated production chain has China as its pivot, will be critical. And Asia excluding Japan is now the second-biggest economic area in the world. "If you're going to have meaningful discussions about international adjustment at this point, China needs to be engaged in the discussions," said Jeffrey Shafer, vice chairman of Citigroup's Public Sector Client Group and former U.S. Undersecretary of the Treasury for International Affairs. "But these things tend to move incrementally rather than in a discreet logical fashion," warned Shafer, co-author of a book last year calling for a G4 -- the United States, Japan, the euro zone and China. "You are probably moving toward a two-part meeting where one of them will focus on things like debt and Paris Club repayment, involving the old G7 members," he said, while the questions of international adjustment will be left to a larger group. China made its debut at the last of the four annual gatherings of finance ministers in October. Russia, while a full member of the annual G8 summit, has played a partial role in the G7 meetings in recent years. <<Earlier on Thursday, (yesterday) a British Treasury source told Reuters that Brazil, South Africa and India had been invited to the breakfast meeting with G7 finance ministers. China has also been invited. The final communique by the Group of Seven industrialized nations could mention the meeting with the four emerging giants, the Brazilian source said.>> It was just a matter of time that to happen. reuters.com