Thursday, May 17, 2007

It's China Thursday!

The first article talks about increasing Chinese investment in Africa. Expect lots more of this in the future - direct investment in China has quadrupled from 2001 to 2005. Here's the shocker: most of the money is going to countries that have proven oil reserves! The Chinese also give out their loans with fewer stipulations, which makes them more attractive than alternative Western loans. I expect this trend to continue, especially as China develops more and more expertise in the form of their own internal infrastructure development. Cash flows of this sort are also contingent upon
the U.S. altering the security structure (or lack thereof) in the Middle East. Time to start shopping elsewhere, eh, China?

Bottom line: this is a good thing for Africa...China also doesn't reek of imperialism like the rest of the Core does...I expect China to develop this market in ways the rest of the world is unwilling to.

Also, a good post by Thomas Barnett on freedoms in China:
China was to force all 20 million bloggers there to register themselves by their real names. You know the drill and the intent.

But China's tech industry balks at the incredible regulatory burden, saying it will retard China's tech industry and hamper its development both at home and abroad, thus harming competitiveness and thus limiting economic growth and thus threatening the party's legitimacy as overseer of economic expansion.

So the party backs down, choosing the economics over the politics.


I see no useful political freedom unless it's undergirded with economic freedom, and that cannot come about without wealth creation, and that cannot come about without connectivity.

Totally agree with this, but I need to turn this idea into something I can make money with ;)

The thing is, we're not going to win any friends over there until we knock off the posturing on human-rights abuses. Our politicians are focused on their political process instead of what the Chinese are focused on - the economy! If the issue of economic connectivity causes the Chinese government to concede a bit of freedom to bloggers, it only goes to show that the Party is responsive to economic issues...more economic carrots, less loud talking. Thanks for playing!

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