It has not been a good year for China. From the google censorship issue, Cheonan, Iran, Taiwan issue, Yuan appreciation/export issue, ASEAN, Diaoyu Islands, Liu Xiaobo’s Nobel prize winner, China’s foreign minister is working overtime to convey the message of the Chinese government but may not be getting its message out in a positive way. In this electronic global Media era, getting your message correctly is the key and use all forms tools of channels, whether it is economic, media, or trade is the key. Getting mad at other countries and making outrageous commendations and cutting off ties is not the way to go. Here’s how I rate China’s diplomatic issues so far this year.
Continue reading »
In 2002, the GDP of China was 10.2 trillion yuan, and the GDP of the US was 10.6 trillion US dollar. At the year-end exchange rate, China’s GDP was 11.7% of the US’. In 2007, the GDP of China was 24.7 trillion yuan, and the GDP of the US was 14.0 trillion US dollar. At the end-end exchange rate, China’s GDP was 24.0% of the US’.
If we assume the relative paces of the underlining economic numbers remain the same, China will catch up the US in 2019. That’s scenario #1. The key underlining economic numbers are: nominal GDP growth and currency exchange rate. Continue reading »