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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: 16yearcycle who wrote (21310)	7/9/1998 2:40:00 PM
From: Gottfried	Read Replies (1) \| Respond to of 70976

Eugene, global economic concerns are best discussed on the former "Blood" thread. If you've been there lately you know what I mean. Gottfried :)

To: 16yearcycle who wrote (21310)	7/9/1998 5:13:00 PM
From: derek cao	Respond to of 70976

Off topic: Eugene, thanks for the confidence in china's future. I personally hope that china will be a modern nation both in cultural and economical sense ASAP. However, with some reality check, I painfully realize that there are major obstacles: 1) unable to tolerate difference 2) willingness to interfere economy 3) lacking rule of law 4) insolvent banking system etc... I will guess that China will need 20 years to archive Japan's GDP assuming 1% annual growth rate for Japan 10% for China. IMHO, fixed exchange rate is bad for one's economy. The great strength of capitalism lies in its flexibility - the ability to adapt to new environment. Today's world has enormous disparity. Even more the situation changes everyday. I can not think anyone who has the ability to assign the exchange rate except the market itself. I am sure that refusal to devalue brought a great prestige to China and its government. But this sacrifice will do great damage to the chinese economy. No matter how hard I tried, I failed to find out how can this can benefit china in long term except give some chinese people a big ego boost. In my book, prestige and status do not mean much without the power to back them up in the future. regards Derek