The Most Dangerous Thing About China: Americans' Attitudes

[A.Rafay]

Most Americans are scared of China’s economic expansion. They hear their leaders talk about intellectual-property theft, military buildups, political intrigue, and stolen jobs. This rhetoric could backfire on the U.S. economy and limit opportunities for the next generation.

Almost half of Americans—46 percent—say they believe “China’s growth will have a negative impact on the U.S. economy,” according to a recent survey by the Boston Consulting Group (BCG) of 4,000 consumers in China, the U.S., and the U.K. To put a finer point on it, only 20 percent of Americans said they disagreed with that statement.

This view is misguided—and reinforced by pundits and politicians. In recent debates, each presidential candidate argued he is tougher on China than the other. Americans are being sold a bill of goods—that China’s growth is the U.S.’s loss. It simply is not true. It is not a zero-sum game.

China’s growth—specifically, the huge increase in spending by Chinese, the largest expansion of a consumer market in history—represents one of America’s best chances for future prosperity. Imagine 1.3 billion people with annual incomes rising from $4,000 to $12,000 over the next decade. They want brands—often U.S. brands. The U.S. has the resources and intelligence to become China’s leading trading partner and capture the benefits.

In our survey, 40 percent of Chinese people said they are planning to spend more money in the next 12 months than they did in the past 12—despite the current, and temporary, slowdown in China. By contrast, only 9 percent of U.S. consumers said they plan to spend more in the next year.

To prepare to benefit from China, Americans not only need to change their attitude and understand what Chinese consumers will want; they need to understand the skills required to deliver to China.

The siren song from China is the demand for food, cars, housing, health care, apparel, education, and solutions to environmental and water challenges. Americans can participate if they pursue the right technical skills. Engineers, biochemists, development economists, and finance and accounting experts will be among the winners.

Business leaders can set the stage by planning around the tremendous opportunity—and daunting risk—China presents. The volatility, obstacles, and number of ingenious and well-funded local competitors in China will explode, but so will the rewards of being a U.S. company that gets it right. Starbucks (SBUX), Mondelez International (MDLZ), Yum! Brands (YUM), and General Motors (GM) exemplify getting it right in China now.

To provide Chinese consumers the right goods at the right prices, with the right features and margins, leaders need to always ask: Do we have the best and brightest deployed in China? Do we really understand Chinese consumers’ needs, hopes, and dreams? Are our aspirations big enough? Have we set investments at a high enough level?
The Most Dangerous Thing About China: Americans' Attitudes - Businessweek

 

[Wickerman]

The thing about the United States is that it always needs some form of "enemy". A boogeyman to be afraid of. They need to keep "fighting". If they dont have that they start suffering from "Enemy deprivation syndrome"

Someone ALWAYS has to threaten their "national security" or "freedom" or their "American way of life" - they love using those terms.

And of course almost all the times these enemies have to be the evil "communists".

To think that the comman man feels that China's growth will be NEGATIVE for the United States ECONOMY is laughable. In reality, China's growth will only help others in terms of economy, investments, potential markets etc.,

 

[anon45]

The thing about the United States is that it always needs some form of "enemy". A boogeyman to be afraid of. They need to keep "fighting". If they dont have that they start suffering from "Enemy deprivation syndrome"

Someone ALWAYS has to threaten their "national security" or "freedom" or their "American way of life" - they love using those terms.

And of course almost all the times these enemies have to be the evil "communists".

To think that the comman man feels that China's growth will be NEGATIVE for the United States ECONOMY is laughable. In reality, China's growth will only help others in terms of economy, investments, potential markets etc.,

Not as long as foreign companies in certain sectors are given second class treatment to Chinese companies (thankfully the US seems to be finally reciprocating after many years of a one sided beating), and that economic benefit can be proven illusionary for relatively small/minor disputes as Japan has learned. The size of the potential market simply doesn't matter if you aren't allowed access.

 

[Zabaniyah]

Almost half of Americans—46 percent—say they believe “China’s growth will have a negative impact on the U.S. economy,”

BCG - Press Release - Nearly Half of Americans Think China's Growth Will Hurt the U.S. Economy

It's China who is more dependent on the US, not the other way around.

Look at it this way, the US consumer market is HUGE. Many developing nations depend on that for their exports. If the US stops importing goods and services from lets say India and China, their economies will collapse within 24 hours.

Another thing is that the US economy is highly advanced. It's not some production-oriented economy like China. It's a knowledge-based economy.

And if it does produce goods, they are usually very hi-tech stuff like advanced computer chips, aircraft engines, etc. Again, backed by a knowledge-based economy in creating new stuff.

They shouldn't be making things like clothes, undergarments, toys and such on a large scale. Those kind of things can be produced by developing countries at cheaper rates.

IP rights is an issue that can be settled.

 

[Chinese-Dragon]

China’s growth—specifically, the huge increase in spending by Chinese, the largest expansion of a consumer market in history—represents one of America’s best chances for future prosperity.

When fighting over a big pie, even a small slice is huge.

The size of the potential market simply doesn't matter if you aren't allowed access.

I use Microsoft Windows, I eat KFC, and I had a Dell computer (though I switched back to Lenovo recently.)

If American companies face such restricted access then why are they everywhere?

 

[Zabaniyah]

Not as long as foreign companies in certain sectors are given second class treatment to Chinese companies (thankfully the US seems to be finally reciprocating after many years of a one sided beating), and that economic benefit can be proven illusionary for relatively small/minor disputes as Japan has learned. The size of the potential market simply doesn't matter if you aren't allowed access.

Any evidence of this?

Suffice to say, if ye don't take the correct initiative, then nothing will bear fruit.

Let me give my nation's example:

China has invested quite a lot in my nation's infrastructure. And will invest even more, including in developing and investing in various industries.

This also includes a deep sea port, which China has displayed interest. They've also offered both India and the US to have access to it.

Despite this, how is it that China is threatening the US economy as per American belief exactly according to the survey conducted by the famous BCG?

On other hand, American investment in my nation's infrastructure is close to non-existent. Even the Russians invest more.

These little things do matter. And sending aid doesn't necessarily solve problems.

 

[zergcerebrates]

Most Americans are clueless about China, its government, people and the society as a whole.

 

[bolo]

i cannot think of one thing i buy from usa and i live close to usa. Mainland chinese are so obsess with american goods thatit will be their downfall. The only thing that chinese need from usa is their military weapons knowledge and HOW to conduct proper PR