Eric Schmidt: China is the most dangerous superpower on Earth.

[Sasquatch]

What happens when China's economy has a hiccup and stops growing for a few month or years? Then what?

Noting really China experienced a slowdown in 2012 everything went on the same, however major economic and some political reform will be made to adapt to the times.

 

[shuttler]

too much oppression may lead to a revolution.

we wont follow india's path. for sure!

 

[shuttler]

But for all the advantages China gains from its approach to the Internet, Schmidt and Cohen still seem to think its hollow political center is unsustainable. “This mix of active citizens armed with technological devices and tight government control is exceptionally volatile,” they write, warning this could lead to “widespread instability.”

In the longer run, China will see “some kind of revolution in the coming decades,” they write.


Yup , you don't need to be scholar or major in humanities studies to figure this out .

if you go thru parallel history of India ( from 1947) , Pakistan(from 1947) and Republic China (from 1912).

You would realized the China until Tiananmen square (1989) has been in a constant state of war/revolution with itself perhaps even the bloodiest in history in one form or other, its citizen lacked political consciousness and turned on each other for pettiest of reason.

So only a extremely brave and charismatic leader with proactive reforms will have the courage to open this freedom Pandora box,

wonder?, if revolution will cause changes or changes cause revolution, either way there will be revolution ! , but this time unlike the past it will effect us all !!

you are just b/s again. China has had major wars against foreign invasions!

we wont be dictated upon for reform, not revolution. the least from google!

A revolution is much needed from your country of origin!

 

[Ayush]

we wont follow india's path. for sure!

That is already visible.

 

[JSCh]

Oh Boy! The top executive of a global giant that is one of the world most if not the most influential in the internet realm actually sound like a hapless LOSER.


All he can come up with is this pathetically unconvincing prediction of DOOM again! I think more likely he would continuously to be GLOOM like before.

 

[Solomon2]

Noting really China experienced a slowdown in 2012 everything went on the same, however major economic and some political reform will be made to adapt to the times.

What do you think those changes will be?

 

[jhungary]

What do you think those changes will be?

Currently China is on a Scheme that using their potential power (eg Human Factor) to draw people and invest in it. Most enterprises and factory choose China as their destination is simply because the fact that Chinese worker is half of what they pay or less in their local country.

This, however, cannot gone on for long unless China change from a labor induced economy to market induced economy.

What it said is, China need to change from a traditional role of builder-exporter/re-exporter to importer economy.

While currerntly, most of the domestic share of the Chinese market is by Chinese product (I think i read it somewhere 70% of oall market value is coming from Chinese own product. You can hold on to it and keep satisifing your own customer only, but with the growing economy, you cannot get for long as A.) Your citizens became richer, and B.) the cost of producing said product graduately increase.

With that in mind, Chinese domestic market will suffer from a surge of Inflation, if China domestic market continue to depend on It's own Product but meanwhile the world depend on Chinese import. (Hence, less supply)

It would be ok if the whole economy is lifted as a whole. The problem is, this is not the case, China, coming from a Communist Regime cannot adapt to so called "Free-Market" strategy, as Chinese economy was and still is held by selected few (Mostly decentent from high ranking political figure) and the signature rich become richer, poor become poorer of free-market trading will hit China hard.

If you still don't understand what i am saying, think this

• If the world keep depend on Chinese Import (Because they are cheap) we will keep buying Chinese Import.
• Then the people + assoicate who made those thing will become extremely rich
• Then As the economic progress, Chinese, on average will have higher spending power
• Then inflation
• Then Chinese product cost increase and resulting price increase for both Domestic use and export
• The world will no longer see Chinese porduct is a cheap substitute.
• Economy of China collaspe because the domestic market cannot adapt to the inflate-priced Chinese product.

What China need to do is, they need to bump in more foreign product and keep their own product low cost, whenever the rich in China buy the "Inflated Foreign product" the Chinese domestic produce will be left untouch and stay competitive. This is the change China need to do and need to do quick

 

[Sasquatch]

What do you think those changes will be?

Jhungary laid out a couple of points, own views are now China is moving away from an export based economy to a consumption based economy, some loosening on restrictions.

 

[Solomon2]

....some loosening on restrictions.

What sort of restrictions will be loosened?

 

[Wombat]

Most think China is a miracle in fact it’s not ; there is lots similarity between China and rest of fast boomed economies of east Asia , like Japan, Korea , Singapore and Taiwan in the past .

Perhaps the only miracle part is ; its did the largest economic transition in history this is due it sheer population size.

The fundamental of these economies were the same, Cheap labour + attract capital + manufacture cheap +sell cheap = profit, use that money and raise the standard of the people and country.

The biggest variable component is cheap labour, which most of these raising economics have or had this is different to west where labour is expensive.

As living standard increase, wages have to rise, when wages rise, inflation increase, profit from manufactured goods lessen and the whole things starts to slow down and hit hard.

To understand how this falls apart you need to learn about Lewis turning point , there will come a time in fact it’s already here for china, where labour costs increase and this will increase the costs of Chinese goods, This will make Chinese goods more pricey which will reduce exports , so if they don't have a good domestic market to absorb it , its stuffed !!

China will be big deal if they can pull off its manufacturing base + domestic consumption of United states.

This will be pretty hard without free market and free society.

 

[shuttler]

It would be ok if the whole economy is lifted as a whole. The problem is, this is not the case, China, coming from a Communist Regime cannot adapt to so called "Free-Market" strategy, as Chinese economy was and still is held by selected few (Mostly decentent from high ranking political figure) and the signature rich become richer, poor become poorer of free-market trading will hit China hard.

The widening gap is inevitable from a developing country which is on the ascension to another level higher up on the ladder. That needs to be fixed by balancing it with social policies. China is a much freer market than most other countries such as the largest "democracy" and a lot than you people think.

FOREIGN COMPANIES IN CHINA

In 1979, there were 100 foreign-owned enterprises in China. In 1998, there were 280,000. As of 2007, foreign companies employed 25 million people in China. U.S. companies with offices in Beijing include Google, Microsoft, FMC, Cigna, Unisys and General Electric. U.S. companies with major production facilities in Shanghai include Dupont, Rohm & Haas and General Electric. As of early 2010, Fortune 500 companies had 98 research and development facilities in China.

Foreign companies in China include Coca Cola, Pepsi Cola, Nike, AT&T Corp., Bristol-Myers Squibb Co., Citibank, Morgan Stanley & Co., Volkswagen AG, Unilever, Toshiba Corp., Matsushita Electrical Industrial Co., General Motors, France's Citreon, Philips Electronics, Cisco, Microsoft, Motorola, Samsung Electronics, NEC. Proctor and Gamble, Wringley chewing gum.and Hitachi Ltd.

Western products—especially cigarettes, liquor, cameras, watches and designer clothes—have traditionally been are seen as a statues symbol. a Western analyst told the Washington Post, "Anything foreign is a cachet. Rightly or wrongly, it's considered to be of better quality."Among the American products that have been available for some time in China are Head and Shoulders shampoo, Raid insecticide, Camay soap, Milky Way candy bars and Dove ice creams bars. For a while Chinese companies Americanized their products and logos, putting statues of Liberty on their packages. The flying red horse symbol of the Mobile Corp. has been in China since the late 1800s. [Source: Peter Behr, the Washington Post]

As of 2010, 300,000 foreign companies had invested in China. United States companies with the biggest investment in China (1998): 1) General Motors ($2 billion), with a massive Buick plant in Shanghai; 2) Motorola ($1.2 billion), cell phones and pagers; 3) General Electric ($1.1 billion), high-tech medical equipment and CD plastic; 4) Arco ($620 million), oil exploration in the South China Sea; 5) Coca Cola ($500 million); 6) Hewlett-Packard ($400 million); 7) Proctor and Gamble ($360 million), with a huge shampoo plant; 8) Amoco ($350 million), polyester plant supplies clothes factories; 9) United Technologies ($250 million). [Sorry for the dated data, but I haven't found any good recent data]

Foreign companies doing business in China are generally required to form joint ventures with Chinese companies instead of forming wholly owned subsidiaries. Entrance by foreign companies to the Chinese market is often determined by how much technology and know-how the Chinese can get from the foreign company. Many Chinese worry that foreign companies are posed to take over entire sector of the economy.

In 2010, China announced plans to require Western companies doing business in China to turn over sensitive technologies and patents to Chinese competitors in exchange for access to the country’s markets. According to a 2010 American Chamber of Commerce report, U.S. businesses were losing Chinese sales because of rules to support homegrown technologies.

Japanese companies are put under more scrutiny than Chinese companies or companies from other countries. If something goes wrong with a Japanese product, particularly a car, the problems get a lot of attention. Advertisement by Japanese companies are also scrutinized carefully for anything that might be perceived as anti-Chinese.

American companies doing business in China have to assure Washington that their dealings will not compromise American national security in any way.In 2006, the Chinese government placed limits on real estate investment and tightened controls on mergers involving foreign firms. The Carlyle Group bid for 85 percent of Xugong, China’s biggest maker of construction equipment, was abandoned.

Most goods that U.S. companies manufacture in China are sold in China not exported to the United States.

FOREIGN COMPANIES AND FOREIGN INVESTMENT IN CHINA - China | Facts and Details

China entered WTO in late 2001 which is an org through which multi-lateral trades of China with the member countries are possible

China has also signed a no of free trade agreements: with ASEAN on zero tariff, with Japan, S korea, Australia, Pakistan, Peru, N Zealand and the no is growing.

Dont b/s like the other guys such as @Wombat here who are just regurgitating on distorted media articles

 

[True pakistani 22]

Western Media propaganda against China

 

[shuttler]

Most think China is a miracle in fact it’s not ; there is lots similarity between China and rest of fast boomed economies of east Asia , like Japan, Korea , Singapore and Taiwan in the past .

Perhaps the only miracle part is ; its did the largest economic transition in history this is due it sheer population size.

The fundamental of these economies were the same, Cheap labour + attract capital + manufacture cheap +sell cheap = profit, use that money and raise the standard of the people and country.

The biggest variable component is cheap labour, which most of these raising economics have or had this is different to west where labour is expensive.

As living standard increase, wages have to rise, when wages rise, inflation increase, profit from manufactured goods lessen and the whole things starts to slow down and hit hard.

To understand how this falls apart you need to learn about Lewis turning point , there will come a time in fact it’s already here for china, where labour costs increase and this will increase the costs of Chinese goods, This will make Chinese goods more pricey which will reduce exports , so if they don't have a good domestic market to absorb it , its stuffed !!

China will be big deal if they can pull off its manufacturing base + domestic consumption of United states.

This will be pretty hard without free market and free society.

you are brainwashed! read my posting above for what a free market that China is and compare that with india

”Cheap labour？“ - we are marketing to the world from basic handicraft, soft-toys to electricity grids, heavy tonnage oil tankers and vessels, the best handsets, computers, digital TVs, household appliances, telecommunicating system, infrastructural establishments, trains, coaches, satellites and launches, construction cranes and full array of equipment ... all over the world!, !

How many of those from your country of origin is exporting!?

 

[asianamerican]

Oh Boy! The top executive of a global giant that is one of the world most if not the most influential in the internet realm actually sound like a hapless LOSER.


All he can come up with is this pathetically unconvincing prediction of DOOM again! I think more likely he would continuously to be GLOOM like before.

It is sour grapes from a company who is in bed with the NSA and CIA. Google is dangerous as it is unethical. Take the Egypt Spring and the Benghazi incident. They takes order from the US government.

If riots started happening in China, Google would probably use all their capacity to inflame rather than defuse tension, as that is what they want from China. Fortunately Chinese government are smart enough to never lose control of strategic industry, especially to a country that want the China to fail.

Google can kiss the China market goodbye. Chinese should be happy that Schmidt made this comments. It just shows you the true color of many Western political and business leaders with regards to China - that is they want Chinese to roll over and be a sweatshop to fuel Western standard of living forever. Better your people take charge of your destiny than some foreign company who obeys by foreign law and not yours.

 

[hurt]

Google was driven out of china.