As part of our Feature on the China / Japan dispute, which, thankfully, seems to be simmering down,
we noted that not only has China apparently stopped exporting rare earth metals —
which are key to the production of many advanced high tech products
like high-definition elevisions, cell phones, computers, guided missiles, hybrid cars, satellites, wind turbines, batteries, magnets,
27 September 2010. By David Caploe PhD, Chief Political Economist, EconomyWatch.com
From a strictly economic point of view, the structural change in the world economy is summed up by the term
for the most “advanced” “emerging” nations, BRIC: Brazil / Russia / India / & China.
It is certainly true that these four do stand out as economic powerhouses whose potential is both huge and a long way from being tapped.
The Indian government announced a major policy shift in Kashmir on Saturday,
calling for the release of jailed student protesters, easing security strictures in major cities, reopening schools and universities,
and offering financial compensation to the families of the more than 100 civilians killed since the restive region erupted in protests in June.
For the last several years, one big theme has dominated talk of the future of Asia:
As China rises, its neighbors are being inevitably drawn into its orbit, currying favor with the region’s new hegemonic power.
The presumed loser, of course, is the United States,
whose wealth and influence are being spent on the wars in Iraq and Afghanistan
and whose economic troubles have eroded its standing in a more dynamic Asia,
Food prices rose 5 percent globally during August, according to the United Nations, spurred mostly by the higher cost of wheat,
and the first signs of unrest erupted as 10 people died in Mozambique during summer clashes ignited partly by a 30 percent leap in the cost of bread.
“You are dealing with an unstable situation,” said Abdolreza Abbassian, an economist at the United Nation’s Food and Agriculture Organization in Rome.
The Chinese government, determined to become a world leader in green technology,
says it plans to invest billions of dollars over the next few years to develop electric and hybrid vehicles.
It said a group of 16 big state-owned companies had already agreed to form an alliance
to do research and development, and create standards for electric and hybrid vehicles.
Back-to-school season started off on sale, with retailers receiving new merchandise in August, and then marking it down to get it out the door.
All of the discounting was a troubling sign for the fall and holiday seasons.
To make it through the worst of the recession, retailers cut prices aggressively, which hurt their profits.
They say they have learned their lesson and are trying to retrain consumers to buy at full price by having fewer items available,
21 September 2010. By David Caploe PhD, Chief Political Economist, EconomyWatch.com
Of the many elements that have gone into China’s stunning – and stunningly fast – economic growth,
there is little doubt that the population-limiting “one child policy” has been one of the most important.
As the economy remains weak, the number of troubled banks creeps higher, the Federal Deposit Insurance Corporation said in its report for the second quarter.
Agency officials said the list of “problem banks” reached 829 in the second quarter, an increase of 54 lenders, many of which were small community banks.
While that is a smaller increase than in previous quarters, the number of problem banks remains at its highest level in more than 16 years.
The Chinese government recently ran an enormous help-wanted advertisement
seeking professional managers for some of its biggest state-controlled companies,
a novel but not unprecedented move that apparently reflected unhappiness with the companies’ current performance.
The advertisement, two broadsheet-newspaper pages of small type,
sought applicants for 20 senior management jobs
in industries like nuclear power, auto manufacturing and textiles.
