Home > Uncategorized > Monday Markets: The China Question

Monday Markets: The China Question

I know the timing is a little late, but I finally got around to watching ‘The China Question‘ (originally airing June 3rd on CNBC).  I gotta say filmaker Brook Silva-Braga did a great job not biting on the surface assessment of the China vs. The West debate (cheap labour – destroying the western way of life).  He dug beneath the surface and looked at how history and the past interactions between the worlds two giant economies brought things to where they are today.

I gotta say it was an eye opener in some regards:

  • How freely American companies are providing product blueprints to Chinese producers – essentially rendering themselves obsolete in the near future as these Chinese producers begin to create the products for themselves. As a result:
  • America’s only hope right now for the future is constant innovation (Hello us young people!) and this time to keep a tight lid of the secrets behind them (as well as producing them internally).
  • How a strong majority of Chinese youth don’t know of the 1989 Tiananmen  Square incident.
  • How China is devaluing their currency to keep their factory-workers happy with their low wages, in an attempt to buy time for China to move towards a non-production, and more skilled/technical economy.
  • New Era hats (MLB’s official cap producers)… Sure they say ‘Made in America’ but the brand is secretly outsourcing certain lines of hat production to China – and yet still trying to play off as ‘homegrown.’

Other obvious questions were put forth, such as what’s going to happen if income levels rise to fast and there’s no workers left to produce the cheap factory goods before China makes the transition to technological production?

And will large-scale creativity and innovation emerge in China soon?

I now see the two as countries that need mutually each other now, yet desperate want to make internal adjustments to free themselves of this need in the future.  But there can only be one winner in this game – the worlds economic superpower.  In my mind the only comparison we can draw from history would be the crumbling of the Soviet Union – will one of these powers suffer the same fate?

There’s obviously more resources + wealth floating around, so the drop couldn’t possibly be near as bad, but in terms of a nation being cut out and left behind … It could very well happen

Here is a trailer:

  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: