Wen backs greater international role for India

[Jade]

As the Businessweek article said, India has more protectionist measures than China does.

So an FTA would work in our favour.

Edit: Cardsharp already answered it.

Yes FTA would work in Chinese favor. It would give license to Chinese to dump cheap products and exploit scale economics, and in turn, hurt Indian companies and industry

 

[Chinese-Dragon]

Yes FTA would work in Chinese favor. It would give license to Chinese to dump cheap products and exploit scale economics, and in turn, hurt Indian companies and industry

A Free Trade Agreement just "levels the playing field".

It is not our fault if you don't think you can compete.

 

[Jade]

Actually, exports make up only 35% of China's economy.

Nowhere close to the levels that exist in exporter nations like Germany and South Korea, which are both at around 50% of GDP.

How can you compare Germany and South Korea to China. Germany and South Korea are smaller and developed and to increase their production possibilities they export. China is developing country hence can absorb its local production, so the analogy does not apply

 

[CardSharp]

People import if you can get cheaper products else where. China built a economy to reckon with through exports...and here you are eulogizing Chinese companies as if they are inventors of high tech

Quote me a statement that gives this impression. You're making sht up too.

 

[CardSharp]

LOL, link?? About what??

Can;t you see yourself china don't allow indian IT and Pharma sector to invest and start bussiness there??

Whats the fuss is all about if could have allowed indian IT and pharma in china??

So you don't have any proof? K.

 

[Chinese-Dragon]

How can you compare Germany and South Korea to China. Germany and South Korea are smaller and developed and to increase their production possibilities they export. China is developing country hence can absorb its local production, so the analogy does not apply

You said our economy was built on exports, but the truth is that exports only make up 35% of the economy.

 

[CardSharp]

How can you compare Germany and South Korea to China. Germany and South Korea are smaller and developed and to increase their production possibilities they export. China is developing country hence can absorb its local production, so the analogy does not apply

Wages are the most important factor in determining internal consumption. Are you going to say that percentage wise Chinese workers have more purchasing power than those living in SK or Germany?

 

[Jade]

Quote me a statement that gives this impression. You're making sht up too.

China has its own IT and pharma industry, the India's sector only advantage is cost (lol @ the irony of you slagging off low costs products), for the higher tech Chinese companies need, they seek partnership with American companies.

You people are disingenuous.

What do you make out of this post?

 

[Jade]

You said our economy was built on exports, but the truth is that exports only make up 35% of the economy.

For any developing country 35% is high.

 

[CardSharp]

What do you make out of this post?

1) India's advantage versus American IT and Pharma companies is cost

2) China will look to American and Pharma companies for higher tech in the form of partnerships.



What did you make of those posts?

 

[Jade]

Wages are the most important factor in determining internal consumption. Are you going to say that percentage wise Chinese workers have more purchasing power than those living in SK or Germany?

I am saying that developing economies and developed economies operate differently, hence comparison is incorrect, and what has my post got to do with wages

 

[Brotherhood]

You said our economy was built on exports, but the truth is that exports only make up 35% of the economy.

CD, the problem is Indians like to argue with source like "internet hoax" and sometimes even with their own imagination but not "FACT"

Myth No. 1:

Exports have been and remain the primary driver of China’s growth.

It’s easy to be mesmerized by data pertaining to overall export revenues, which totaled more than 30 percent of China’s gross domestic product (GDP) in 2007 and 2008 (see Estimated GDP Figures, this page). GDP, however, refers to value added by the economy and not to revenues generated by its enterprises. By most estimates, value added within China constitutes about one-third of the country’s exports. Even after hefty growth over the last several years, exports presently account for only about 10 to 12 percent of China’s GDP (and about 20 percent of the annual growth in GDP). The remaining 88–90 percent comes from domestic spending and domestic investment. The next time you buy an iPod or an iPhone that says “Assembled in China,” it may be well to remember that, almost certainly, only a fraction of the value in that gadget was added in China. Given the likelihood of slower growth in most developed economies and rising consumption within China, exports will quite likely be less important for China’s economy in the future than they have been so far.

Estimates for 2009 are illustrative. For the year just ended, even as China’s GDP grew by about 8.5 percent, its exports are estimated to have dropped by about 16 percent. (See China’s Exports of Goods and Services below)

Six Myths About China | Articles | Chief Executive - The magazine for the Chief Executive Officer

 

[Chinese-Dragon]

For any developing country 35% is high.

Better tell that to Thailand (77%), Vietnam (78%), Panama (75%), Angola (76%)... etc...

Question: Why do you think it's wrong for a developing country to have more than 30% of their GDP composed of exports?

 

[CardSharp]

Min wage affects the average purchasing power, purchasing power determines consumption, consumption well you get the point.... or maybe you don't. I don't see how anyone can miss the connection. Especially considering the issues around the valuation of the RMB is that the US complains, Chinese internal consumption is depressed by a pegged currency.

 

[Jade]

1) India's advantage versus American IT and Pharma companies is cost

2) China will look to American and Pharma companies for higher tech in the form of partnerships.



What did you make of those posts?

The first point is correct

The second point is incorrect. China simply cannot abandon its tested economic model that has yielded high returns