China, U.S. drag on global manufacturing revival

Comments (10)
Bakhtin wrote:

Chinese economic growth is largely an accounting trick. Amongst other things, they calculate GDP in a different way to everybody else in the world, and refuse to release the usual figures so economist can make their own calculations.

This means that the real GDP (as in, calculated in the same way as everyone else) is smaller than claimed, and it follows from this that Chinese debt levels are much higher than claimed and so on. Greece tried a similar trick and fell apart. China will follow in due course.

On top of suspect growth rates, the Chinese economy is also hugely unbalanced with far too much reliance on foreign investment. Essentially, a lot of Chinese growth (estimated 30%) is not from Chinese enterprise… it is from foreign owned factories in China. The way they are turning everybody into enemies will come back and bite them in the ass when foreign companies get fed up of it move their factories to some other cheap labour country.

Feb 03, 2014 3:26am EST  --  Report as abuse
Tiu wrote:

Trust France to drop the ball.

Feb 03, 2014 8:25am EST  --  Report as abuse
RK_France wrote:

Both China and France need to re-invent themselves!
China might well change but France will be tougher still!!

With about 60% of French GDP coming from the government and monopolistic interest groups, it would be a tough nut to crack!!

Feb 03, 2014 10:17am EST  --  Report as abuse
Talleyrand02 wrote:

Adfditional reporting …

Hi Reuters, why don’t you contribute to job creation, write me, I proofread. Best… Me.

Feb 03, 2014 10:58am EST  --  Report as abuse

Europe has a better training/apprentice program for manufacturing jobs than does the U.S.

Feb 03, 2014 2:12pm EST  --  Report as abuse

Europe has a better training/apprentice program for manufacturing jobs than does the U.S.

Feb 03, 2014 2:12pm EST  --  Report as abuse
dae wrote:

I love the comments that pooh-pooh China’s astounding economic growth over the last three decades and talk of its immanent collapse. I remember hearing the same doomsayers jabbering away in the 1980s, 1990s, 2000s and now today. Give it up. Once Chinese domestic demand kicks in the Chinese economy will really take off in a much more sustainable fashion. China is trying to emulate the US economic juggernaut of the 1950s and 60s. Establish a comprehensive social safety net via expanded social security and medicare programs, continue investments in transportation infrastructure and alternative energy procurement, roll out EPA, FDA and OSHA regulatory regimes to repair the environment and insure food, drug and workplace safety. These are all on the agenda of the Chinese for the next couple of decades. Add to that large increases in R and D, and investments in education and you get the basis for an explosive growth in domestic demand. Of and I forgot to mention China’s ridiculously high personal savings rate of 50%. Chinese personal savings amount to 7 trillion US dollars, mostly as a hedge against rising housing. health and retirement costs. But once the Chinese begin meeting those needs via an expanded social safety net, and once rural property rights reforms kick in a vast amount of personal funds will be available to fuel domestic consumption and fuel economic growth. Given all that China has already accomplished it is still a sleeping giant.

Feb 04, 2014 12:15am EST  --  Report as abuse
dae wrote:

I love the comments that pooh-pooh China’s astounding economic growth over the last three decades and talk of its immanent collapse. I remember hearing the same doomsayers jabbering away in the 1980s, 1990s, 2000s and now today. Give it up. Once Chinese domestic demand kicks in the Chinese economy will really take off in a much more sustainable fashion. China is trying to emulate the US economic juggernaut of the 1950s and 60s. Establish a comprehensive social safety net via expanded social security and medicare programs, continue investments in transportation infrastructure and alternative energy procurement, roll out EPA, FDA and OSHA regulatory regimes to repair the environment and insure food, drug and workplace safety. These are all on the agenda of the Chinese for the next couple of decades. Add to that large increases in R and D, and investments in education and you get the basis for an explosive growth in domestic demand. Of and I forgot to mention China’s ridiculously high personal savings rate of 50%. Chinese personal savings amount to 7 trillion US dollars, mostly as a hedge against rising housing. health and retirement costs. But once the Chinese begin meeting those needs via an expanded social safety net, and once rural property rights reforms kick in a vast amount of personal funds will be available to fuel domestic consumption and fuel economic growth. Given all that China has already accomplished it is still a sleeping giant.

Feb 04, 2014 12:15am EST  --  Report as abuse
dae wrote:

I love the comments that pooh-pooh China’s astounding economic growth over the last three decades and talk of its immanent collapse. I remember hearing the same doomsayers jabbering away in the 1980s, 1990s, 2000s and now today. Give it up. Once Chinese domestic demand kicks in the Chinese economy will really take off in a much more sustainable fashion. China is trying to emulate the US economic juggernaut of the 1950s and 60s. Establish a comprehensive social safety net via expanded social security and medicare programs, continue investments in transportation infrastructure and alternative energy procurement, roll out EPA, FDA and OSHA regulatory regimes to repair the environment and insure food, drug and workplace safety. These are all on the agenda of the Chinese for the next couple of decades. Add to that large increases in R and D, and investments in education and you get the basis for an explosive growth in domestic demand. Of and I forgot to mention China’s ridiculously high personal savings rate of 50%. Chinese personal savings amount to 7 trillion US dollars, mostly as a hedge against rising housing. health and retirement costs. But once the Chinese begin meeting those needs via an expanded social safety net, and once rural property rights reforms kick in a vast amount of personal funds will be available to fuel domestic consumption and fuel economic growth. Given all that China has already accomplished it is still a sleeping giant.

Feb 04, 2014 12:15am EST  --  Report as abuse
Bighammerman wrote:

The President of the U.S. has the job of creating an economic environment where businesses can thrive. Obama has not done that and to the contrary has created an enormous amount of uncertainty that has hurt the economy, businesses and employment. Obama is deliberately creating this uncertainty to destroy the country, which is his goal in life. What I don’t understand is why people still continue to support Obama since his performance is dismal at best. The only reasons I can think of why people continue to support him are race, stupidity, they believe his spontaneous and continued lies, they don’t understand business or they like living on the entitlements.

The country will soon crash and it is ultimately the fault of those who support Obama and his failed actions and policies that are destroying economies around the world and in the U.S.

Feb 04, 2014 12:03pm EST  --  Report as abuse
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