Business Sours on China on the front page of the Wall Street Journal.

Good article that covers the high/lower points including:

• Google
• Rio Tinto
• Buy Chinese requirements & IP/Patent Requirements
• Descriminatory import inspections

What the article did not mention is how the changing of China's top leadership in China may be influencing the current economic nationalism and merchantism in China.

Labels: china's future, US Chinese Image

There have been several articles about how China's currency is being deliberately undervalued as a way to keep China's exports at a high level. By having an undervalued currency China's exports are more competitive due to this cost advantage. The IMF has a report that China's currency is undervalued, but the Chinese government has been blocking it's publication.

A more useful tool I have found for comparing currencies is The Big Mac Index published by the Economist. The Big Mac Index compares the cost of the Big Mac in different countries. Per the index, China's currency is undervalued by 49%. Paul Krugman uses 20 to 40%. Other countries that are competing with China, such as Taiwan, Thailand, and Indonesia also have undervalued currencies. Krugman also has a interesting technical explanation on why it does not matter if China starts to sell it's US treasury holdings - China's Water Pistol - Paul Krugman Blog

Another good article that mentions the IMF and China - China Uses Global Trade Rules to Its Advantage - NY Times.

Labels: china's future, Chinese Economics, US Chinese Image

US Country Image Contest from the Gallup Poll

I am surprised at how people in the US of the age range 18 to 34 are significantly more favorable to China, than older people.

Labels: US Chinese Image

Wow! 33 comments so far in my local paper on this!

Parents to voice opposition to Hacienda La Puente School District's Confucius Classroom - San Gabriel Valley Tribune.

Hacienda La Puente School District is an interesting school district (my wife graduated from there and I subbed there) that is a mix of Chinese, Hispanic, and some White students.

Labels: confucius institute, US Chinese Image

The danger behind China's 'me first' worldview - Washington Post.

Good article. This is a very good paragraph:

Unlike the isolationist America First movement of the 1930s, China First does not mean global disengagement. It does mean engagement on China's terms. China accepts and supports the existing order when that serves its needs, as when it joined the World Trade Organization in 2001. Otherwise, it plays by its own rules and norms.

I was just helping my daughter with US history from WWI through the 30's that have shown the isolationism that has been such a part of American history (basically the US wanted to be left alone until WWII showed this was not possible). China on as noted in the article needs to generate massive amounts of jobs. If China does not, there will be a change of government. Basically the bargain of the Chinese government with the people, an updated mandate of heaven, is continue to make our economy and China strong. Economy translates as more exports to generate more jobs in China along with the raw materials needed to produce the goods. China Strong translates as putting China's interests first and being strong with other countries diplomatically.

Chinese public opinion through the Internet has a strong impact and keeps China's government with a me first attitude. As the school system indoctrinates a strong sense of China's historically being taken advantage of by other countries (Opium War, Japanese invasion of China, carving up of China by foreign countries, sack of Beijing etc.). The increased US dependence on China for financing the US deficit has increased the perceived power within the Chinese government itself.

Labels: china's future, US Chinese Image

UK businesses threaten to pull out of China over protectionism - Telegraph

Trading Barbs with China Wall Street Journal

Labels: china economy, US Chinese Image

Excuse the bad pun, but I feel US China relations is becoming a game of chicken and this not good for either side. Especially if neither side blinks and keeps on escalating, both sides are going to lose.

China to levy anti-dumping duties on U.S. chicken - Reuters.

This probably has not got much play in the US, but it's even more disturbing in some ways if true:

China removes accreditation from University of Calgary after Dalai Lama Visit

I am becoming worried their may be a backlash against China and it could be a lot stronger than China expects by the US and Europe.

Labels: US Chinese Image

Facing up to China - The Economist.

Interesting article. I agree with this closing sentence: Nobody will prosper if disagreements become conflicts.

Labels: US Chinese Image

Sad...

China charges tainted milk scandal activist - UK Telegraph.

I translate this as free speech is allowed in China as long as you stay within certain boundaries. IE don't embarrass the government including their image such as having a web site discussing 300,000 children getting poisoned by melamine. And the route cause of this is a feeling of insecurity by the government.

Labels: china food safety, china's future, US Chinese Image

Good article...

China v USA: more than froth and bother - UK Telegraph.

I am also worried about US China relations.

Labels: china's future, US Chinese Image

Interesting article in the NY Times. Number of foreign-born workers increases to 16% in the U.S.

Monica Boyd, a sociology professor at the University of Toronto, said the second generation personified “the overachievement model, a tendency for very high achievement that seems to come as a result of immigrant parents’ instilling in these kids an enormous drive.” Professor Boyd added, “Many try to instill in their kids the phrase, ‘We did this all for you.’ ”

Russel Peters, an ethinic Indian, has a very funny impersonation that my somebody I know does a killer imitation of his Chinese merchant. Since she's half Chinese, it's not racist I guess...

Labels: US Chinese Image

Assessing the China Trip - NY Times. Basically the NY Times believes it's to soon to tell how successful the trip was, but right now it's not looking good. I do hope more was said in private, than in public.

Foreign policy specialists assess Obama's trip to Asia - Washington Post
In the Washington Post, there is no mention of it's to soon to tell, but the majority of experts were negative on what the trip.

Labels: US Chinese Image

I am impressed by the current US ambassador to China. I like his comment that a China expert is an oxymoron.


"Don't mistake me for being an expert, because I've been here for three months," Huntsman said. "And I've come to the conclusion that 'China expert' is kind of an oxymoron. And those who consider themselves to be China experts are kind of morons. So you take what you can, you learn what you can, and you begin to pull all the pieces together, and still it kind of remains sometimes a somewhat confused environment."

Labels: US Chinese Image

I did not realize there were three people in the President's Obama's cabinet who spoke Chinese. I knew about Treasury Secretary Geithner, but commerce secretary Gary Locke does also. Gary Locke is also ethnic Chinese and third generation American. And the Energy Secretary, Steven Chu through ethnic Chinese, learned in college.

From the FT Times - Obama plays trump cards in Beijing

Labels: us, US Chinese Image

Very good article to read:

In Obama's China trip, a stark contrast with the past - The U.S. tone toward Beijing is now much more conciliatory. Analysis from the Washington Post.

Personally, I am not sure what the real US goal of the trip to China was and what is actually being achieved. The official goals of the trip are to get China's help on North Korea, Iran, and Global Warming.

It seems the Chinese Government is very worried about the US deficit, since this impacts their exports and their economy. Not to mention the massive financing of the US debt that China has done. If the US economy somehow got worse, that would hurt China's economy. Blog post that mentioned China is curious on how the US Health Care Reform will impact the deficit.

Labels: US Chinese Image

Trade War?

In latest export salvo, China takes aim at U.S. auto parts and chicken products - LA Times.

The US applied a Tire Tariff and China is now responding with this, on top of the WTO appeal. I believe that the past humiliation of China by Western Powers (see Qing Dynasty and Modern Chinese Nationalism) will make it so China sees the need to retaliate to prove that the Chinese government is not allowing the United States to take advantage of China. My guess is the US executive branch was more focused on Health Care and using this as a feel good way at minimal cost to look tough on trade , and misgauged the reaction from China.

Personally, if I was in the US government I would become very worried about this development...

Labels: china's future, Chinese History, US Chinese Image

Quote from Thomas Friedman's NY Times editorial today:

The U.S. Embassy and the Chinese Embassy are both located on Panchsheel, directly across from each other. They asked me to check out the rooftops of each embassy. What do I notice? Let’s see ... The U.S. Embassy’s roof is loaded with antennae and listening gear. The Chinese Embassy’s roof is loaded with ... new Chinese-made solar hot-water heaters.

You couldn’t make this up.

Amazing, it brings up so many questions to my mind. My guess is as a way to save money, but may be as a way for selling Chinese products to India. I am curious what the reason is for the Solar Water installations. China seems to also be pushing Solar Water heaters to save energy in China.

Labels: china's future, Enironmental, US Chinese Image

Chinese Leader Raps U.S. for Global Slump - Wall Street Journal.

Very worrisome. Basically the US finances have lost face and trust with the Chinese Government. The Chinese government is feeling betrayed on their investments.

Key Points from the article:

• Beijing is re-examining its U.S. investments, say people familiar with the government's thinking.
• Chinese government investments got burned with Morgan Stanley, the collapsed Reserve Primary Fund and mortgage giants Fannie Mae and Freddie Mac.
• Chinese central bank last year stopped lending its Treasury holdings for fear the borrowers will go bankrupt.
• China the largest foreign investor in bonds from Fannie Mae and Freddie Mac -- has been sharply trimming its holdings of that debt.
• Shares fell 60% in the $5.6 billion stake in Morgan Stanley purchased by China's sovereign wealth fund, China Investment Corp. (CIC, 13 months ago.
• CIC has sustained large paper losses on the $3 billion it invested in Blackstone Group LP in June 2007, as well as the Morgan Stanley stake.
• CIC's nearly $5.4 billion investment in the Reserve Primary Fund, the money-market fund that "broke the buck" in September as a result of the Lehman collapse, has asked the US to redeem it. That has not been done yet, causing worry about US credibilty.
• The Chinese government has received briefings from the former secretary of treasury on the financial crisis. This shows the depth of communication - At one briefing for Chinese officials to explain the change, said people present, they questioned and debated the meaning of nearly every line of the new Treasury plan.

Labels: future, US Chinese Image

Chinese censors snipped 'communism' from Obama address from the UK Times.

when President Obama said: “Recall that earlier generations faced down fascism and communism….”

The simultaneous interpreter proceeded smoothly with her translation but her voice faded out with the rest of the President’s sentence. The picture cut from the Capitol to an awkwardly smiling news anchor unprepared for the camera to return to her and apparently awaiting instructions in her earpiece. She turned to a reporter in the studio for comment on Mr Obama’s economic challenges. Yet more confusion as the flustered young woman sought refuge in the notes on her desk.

And this is interesting...

The People’s Daily, mouthpiece of the Communist Party, published a translated text of the speech on its website, omitting the word communism and cutting entirely Mr Obama’s line that: “To those who cling to power through corruption and deceit and the silencing of dissent know that you are on the wrong side of history, but that we will extend a hand if you are willing to unclench your fist."

Seems to have hit a sore point with the word dissent, or was it corruption...

Labels: china's future, US Chinese Image

U.S. Issues Scathing Report on Immigrant Who Died in Detention - NY Times. The immigrant was from China and was married to a US Citizen.

And another story on Border Bullies by Michael Yon, about the misguided airport security.

And your laptop and any other digital files can be searched when you are entering the US. To me this violate the Fourth Amendment, but the courts currently have decided differently.

This leads to my thought, what type of image is the US giving abroad?

Labels: US Chinese Image