South America & Australia supply goods to an increasingly wealthy cohort of consumers in the People's Republic while people around the world turn to learning Mandarin.
William Foreman of the Associated Press has written an intriguing article 'China flexes its financial muscle' (published September 2, 2007 in the Toronto Star).
Here are some interesting points from Foreman's article, which reinforce the fact that China is emerging as a dominant global power in international trade.
- Higher wages in China now attract migrant workers from around the world.
- China has increased its political and diplomatic presence in resource-rich African countries.
- China already eats 32% of the world's rice, builds with 47% of its cement & smokes 1 of 3 cigarettes.
- China's consumer market will be the second-largest in the world by 2015.
- Some 30% of Brazilian rainforest lumber exports go to China.
- Poorer countries like Liberia prefer China's electrical generators which cost one fifth of a used American or European machine.
- China is expected to become the largest market for commercial aircraft & travel outside the U.S. over the next 20 years.
While China currently imports commercial aircraft from large multinationals like Boeing, many U.S. workers fear that the Chinese will copy Boeing technology to eventually manufacture commercial aircraft in China.
In long-term world trade, China going up can mean America going down.
I don't know about you, but I'm seriously considering learning how to speak (and write International Trade articles in) Mandarin.
