China Sneezes and the World Catches Cold!
By amazingantz
@amazingantz (2)
New Zealand
March 8, 2007 11:30pm CST
This very quote had been referred to US until very recently. If something wrong happens in US, the ill effects would be all over the world. Take for example the great fall of markets after 9/11.
But is there a shift of poles? Most of us have witnessed the shockwaves and subsequent huge fall of share indices all over the world market after over 9% drop in Shanghai Share Index on March 2, 2007.
The reasons for this fall might be quite funny but one thing is for sure, we as a whole world are very much dependent on China these days.
What do you think? Is it a phenomenon of growing harmony and interweaving of the world developments or a sign of our future at the mercy of the Red Dragon?
(To my Chinese friends, no offence intended please.)
1 person likes this
2 responses
@RealBored (124)
• United States
10 Mar 07
Well, China has influenced the whole world, and will continue to for years. China will soon become the world's biggest power and then, things will get extremely bad for the world if China gets hit with any economical punches.But for now, things will not be as bad for the world.
@coffeechat (1961)
• New Zealand
10 Mar 07
As is well known, China began its "great leap" forward after the Nixon administration provided it with the MFN status. With duty free imports into the USA, capital flowed into China to set up manufacturing.
Today China is the world leader in manufacturing and chinese products are the mainstay of western shops. If shipping were to stop from China, the world would be affected.
China is still financially isolated - i.e. the Yuan is a managed currency. China's trade surpluses are causing huge imbalances and this is a cause for much concern in financial circles.
This statement would become true, in the next ten years or so. But for now it is only partially true.
Cheers!
