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Soros: Global Power, Influence Shifting From US To China | Real Time Market News | Dow Jones
TORONTO -(Dow Jones)- The world is witnessing a remarkably rapid shift in global power and influence from the U.S. to China, billionaire financier and philanthropist George Soros said here Monday.
Whereas the U.S. remains mired in the financial crisis that began in its own financial system, China continues to function effectively and achieve a large trade surplus, Soros said in a speech Monday.
Soros was speaking at a dinner in Toronto after receiving the "Globalist of the Year" award from the Canadian International Council.
"The crisis there was purely external and the system unscathed," he said.
Current systems of global governance are on the brink of breaking down as the G20 group of advanced and emerging economies falls prey to internal tensions, he said.
China has become the "motor" of the global economy and political instability there would have global consequences, he said.
Soros was speaking at a dinner in Toronto after receiving the "Globalist of the Year" award from the Canadian International Council.
The fact that China's currency is essentially fixed to the U.S. dollar makes the resolution of global trade imbalances difficult, Soros said.
But China's undervalued currency is also at the core of the effectiveness of its government because it enables the government to essentially transfer wealth from those earning it to the government, in the form of its roughly $2.4 trillion in foreign exchange reserves, he said.
"It makes for a powerful government in China," he said.
The Chinese government has more policy options than the U.S. because it has a substantial trade surplus, he said.
China must begin to assume more responsibility for helping shape global financial order, Soros said.
"China has risen very rapidly by looking after its own interest," he said. "They've now got to accept the responsibility for world order, and therefore the interests of other people, as well," he said.
[wants Zhongguo to be "globalistic" or rather a global imperalist to replace the US and continue the western model?]
"If they persist in their present course, it will lead to conflict," he said.
-By Don Curren; Dow Jones Newswires;416-306-2020; don.curren@dowjones.com
Soros: Global Power, Influence Shifting From US To China | Real Time Market News | Dow Jones
TORONTO -(Dow Jones)- The world is witnessing a remarkably rapid shift in global power and influence from the U.S. to China, billionaire financier and philanthropist George Soros said here Monday.
Whereas the U.S. remains mired in the financial crisis that began in its own financial system, China continues to function effectively and achieve a large trade surplus, Soros said in a speech Monday.
Soros was speaking at a dinner in Toronto after receiving the "Globalist of the Year" award from the Canadian International Council.
"The crisis there was purely external and the system unscathed," he said.
Current systems of global governance are on the brink of breaking down as the G20 group of advanced and emerging economies falls prey to internal tensions, he said.
China has become the "motor" of the global economy and political instability there would have global consequences, he said.
Soros was speaking at a dinner in Toronto after receiving the "Globalist of the Year" award from the Canadian International Council.
The fact that China's currency is essentially fixed to the U.S. dollar makes the resolution of global trade imbalances difficult, Soros said.
But China's undervalued currency is also at the core of the effectiveness of its government because it enables the government to essentially transfer wealth from those earning it to the government, in the form of its roughly $2.4 trillion in foreign exchange reserves, he said.
"It makes for a powerful government in China," he said.
The Chinese government has more policy options than the U.S. because it has a substantial trade surplus, he said.
China must begin to assume more responsibility for helping shape global financial order, Soros said.
"China has risen very rapidly by looking after its own interest," he said. "They've now got to accept the responsibility for world order, and therefore the interests of other people, as well," he said.
[wants Zhongguo to be "globalistic" or rather a global imperalist to replace the US and continue the western model?]
"If they persist in their present course, it will lead to conflict," he said.
-By Don Curren; Dow Jones Newswires;416-306-2020; don.curren@dowjones.com
