Is a basically problem of Plenty....

While the U.S.' role in global growth and crisis is well known,...China is now emerging as a cause of capitalism's crisis of over production.

Chinese production and American consumption are like the proverbial..Prisoners who seek to break free...from one another but cannot because they are chained together.

adseaco

Replying to [adseaco]:
So the fault for every problem in trading is either the fault of the US or China or both?

Is that what you are trying to say?

Replying to [Foow]:Dear Foow,
It is not just US, a lot many countries are getting chinese produce, though marketed by market leaders intheir respective countries.
Some electricals in India are chinese origin, marketed under same brand and pricing structure as Indian produce.
Sixer

Sixer,

I understand how it works. My point is that the post is aimed directly at the US and China. Not sure how he construes that the worlds problems are the fault of the US and China and I was asking for clarification of what his post was about.

Replying to [adseaco]:

Quote:

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China is now emerging as a cause of capitalism's crisis of over production.
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Crisis?

What crisis?

I don't see a crisis.

Replying to [Aussie]:
China production - global comsumption!

Replying to [Aussie]: See thread of Ranger posted in yours forum I mean in Global trade policy forum.

Replying to [Aussie]:Sorry for this late response....
According to one prominent economist—“The world ( is ) investing too little”.
Global over capacity has made further investment simply unprofitable, which simply dampens global economic growth.

In China’s, productive capacity has increased at a break-neck pace.
China has been significantly beefing up its industrial capacity and not by simply absorbing capacity eliminated elsewhere. At the same time, the ability of the Chinese market to absorb its own industrial output remains limited.

*Philips operates...23 factories in China and produces about $5 billion worth of goods, but 2/3rd of its production is exported.
*China’s Toy production, is nearly 75 % of the total production in the world, is worth billions of dollars and more that 60 % of it is exported to the United States.

Chinese authorities, however, have apparently chosen to continue the age old strategy of dominating world markets by exploiting the country’s cheap labour.

Although China’s population is 1.3 billion, 700 million—or over half-live in the countryside and earn an average of just $285 a year, according to some estimates. The reserve army of rural poor has enabled manufacturers, both foreign and local, to keep wages down.

Global crisis of over production will worsen as China continues to dump its industrial production on global markets constrained by slow growth.

On one hand, China’s break-neck growth has increasingly depended on the ability of American consumers to continue their consumption of much of the out put of China’s production brought about by excessive investment.

On the other hand, the U.S.’ high consumption rate depends on Beijing lending the U.S’ private and public sectors a significant portion of the trillion-plus dollar it has accumulated from its yawning trade surplus with Washington.

Both the U.S. and the IMF have decried what they call ‘’global macroeconomics imbalances’’ and called on China to revalue the renminbi (people’s currency) to reduce its trade surplus with the U.S..
Yet China can not really abandon its cheap currency.

Along with cheap labour, cheap currency is part of China’s successful formula of export-oriented production.
And the U.S. really cannot afford to be too tough on China since it depends on that open line of credit to Beijing to continue feeding the middle-class spending that sustains its own economic growth.

Extracts from: Mr. Walden Bello's (Article)—Professor of Sociology at the University of Philippines and Executive Director of the Bangkok-based research and advocacy institute Focus on the Global South.

Replying to [adseaco]:Yes, Adseaco, you have a point.
Here I want to remind you of my earlier post in topic elsewhere, and my article on consumption by Indian populace.India cosumes more of its produce that it exports, in contrast to China
This also creates a lop-sided development whch continues to work under threat of migration to cheaper destinations future can throw up coupled with lack of brand strength.Brands are mostly foreign.
Sixer

Replying to [sixer]:


we are the stainless steel pipe fitting factory .

Replying to [adseaco]: Mr. Adesco, If you are saying China is dumping there products all over the world.. Or USA is biggest exporters of Chinese products why ??
Do you know the reason ??? Bcaz they can produce they have producing capacity.. They work hard for the business.
They can make what you want. Importers are dumping the product... Not China..
You tell me if you are a factory and how can you keep supplying goods?? When you have order and you have good production. You can feed others only when your house is full of feeding supplies....
In india we say Daan wahi karta hai jo daan dene ki chamta rakhta hai..