China Growth as a Spur to the World Economy and Not an Anchor

china growth graph through 2009

Slightly dated graph but to 2013 it is still the same story in China growth

China Growth and planning criticized again. All Roads has a thought up that I cannot buy into.  He further wants to give Beijing advice when they understand the problems much better than he does.

All Roads is insinuating that the world cannot feed itself, and China cannot manage this growth. China, as I have said before, has solved much bigger pickles than this.  Why does he want to say this is a red flag?  People have been saying that food will run out since the 1960″s.  No one imagined China buying so much as it has the last 10 years. Still no stress on world food is happening.

The world is blessed by Chinese demand. WTO is stuck because there is too much food. Almost everyone wants to export and not enough import, so the future of WTO is in doubt. See the information about the stalled Doha Round here. China is the only hope of the world for solving the food problem.

Chinese demand for food has grown dramatically over the last 20 years. Hundreds of millions have escaped poverty and are now eating. Has the world starved because of Chinese demand?  Actually, it has been enriched by Chinese demand.

China Growth – Seems We Need a Reality Check

People do not starve because the world has too little total food. People starve when war and and/or false dependence on unsuitable land produce localized famine.  America could feed almost the whole world if need be. The US still pays farmers to not produce! Remember when the US stopped selling grain to the Soviet Union, and how the world had no problem filling the Soviet need? Further, as soon as the Soviet/Russians got rid of their socialist farming system, they began to export and add to the world glut in food.  The world is swimming in food now just like it did then despite a huge growth in world population. (Population growth is leveling off by the way)  The US still ships food to Africa as charity to give US farmers something to do.  The US has way too much capacity and our give a ways to Africa destroy farmers in Africa who cannot compete with free.  In the All Roads graph, the US is red as it exports a lot. So are American children starving because we sent away their lunch?  The whole conception is foolish. More demand just leads to more production and growth in the overall market and delivery system.

China loses food in shipping according to All Roads.  Distribution and logistics is another market for the West to serve. China needs and wants logistic support. Why would this demand be a concern?  It is just growing pains.

China growth creates markets for Africa and the developed world.  Sure, China is immature and selfish on the world stage. America was the same 100 plus years ago.  This can pass if we see them well.  Chinese market growth is benefiting all businesses and countries that want a part of it. Chinese growth is not a problem but a benefit to the world.

Thoughts?

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Posted in: China, Market Entry

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  1. Nic October 30, 2013

    KUDOS!!! So happy to at least find a fellow thinker who sees things as they really are. We live in a sick world where lying, cheating and warping the truth has become THE TRUTH. I hope the revolution which started last year will change all that soon.
    There has never been and never will be global shortage of food, and yes, world population will decrease contrary to what most people think.

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