Why China should be welcomed by Americans, not feared

The reason, according to Michael Silverstein, is simple: the growth of China has the potential to make Americans and American companies very wealthy.

All of these [trade] disputes will be resolved in due course. They are important for many reasons. But none should cause us to lose sight of the promise China holds for U.S. companies, American workers, and the U.S. economy. China can fuel economic growth in the United States for decades to come. U.S. companies that plant the flag early, learn Chinese consumers’ tastes, and are willing to go on the wild ride that lies ahead will win the prize.

 He continues:

The math, which most Americans haven’t yet done, is startling. We have calculated that between 2010 and 2020, the people of China and India will consume some $64 trillion in goods and services. Chinese consumers will spend approximately $41.5 trillion, with annual expenditures increasing from $2 trillion in 2010 to more than $6 trillion in 2020... In China, annual per-capita income is projected to rise, on average, from about $4,400 in 2010 to $12,300 in 2020.

Chinese are not adverse to purchasing American goods and services. In fact, the general population welcomes American brands (just look at the successes of KFC, Apple, Ford, Hollywood, Starbucks, and numerous fashion brands such as Dana Karan and Ralph Lauren), not to mention the countless young (and old) entrepreneurs I meet every day who have come from the US to China to pursue growth in their current businesses or to start and contribute to new ones. American entrepreneurs, enterprises, and the government itself should be leveraging the growth of the Chinese middle class, not bashing it. 

Today's Big Stories for August 30, 2012

Mining accident, European debt, BYD in trouble, and China in Egypt

1. Death toll rises in China coal mine blast

The death toll from a gas blast at a coal mine in the southwestern Chinese province of Sichuan rose to 19, with 28 miners still trapped underground, according to the local city government. A total of 154 miners were working underground when the accident occurred Wednesday at around 6 p.m. at Xiaojiawan Coal Mine, according to Panzhihua city's official account on Sina Weibo, China's equivalent of Twitter.

2. China's Wen calls for action on Europe debt

Expressing alarm at Europe's debt problems, Chinese Premier Wen Jiabao called on Greece, Spain and Italy to embrace budget cuts and get their finances in order after meeting Thursday with visiting German Chancellor Angela Merkel.

1. BYD predicts dismal Q3 results

But the carmaker that used to own the country's best selling model F3 sedan has been outstripped by its peers in the Chinese market, despite only a total 9.6

million vehicles being sold in China in the first half, representing a 14-year low of 2.9 percent year-on-year expansion, according to the China Association of Automobile Manufacturers. Great Wall Motor Co on Friday said its first-half net profit rose 29.9 percent to 2.4 billion yuan from 1.8 billion yuan a year earlier after selling an aggregated 262,018 vehicles during the period. Geely Automobile Holdings Ltd, another Hong Kong-listed carmaker, reported last week that its first-half net profit rose 8.7 percent this year, following sales of a total of 222,390 units both at home and abroad, up about 4 percent from a year earlier.

4. Chinese firms brave uncertainty in Egypt to gain a foothold in the Middle East

The Chinese are attracted to Egypt’s massive market for cheap consumer goods and an expansive and relatively cheap labor force. Egypt’s large number of preferential trade agreements with Europe, Africa and the Middle East, along with the Suez Canal, one of the world’s most important waterways, also make it a prime location, said Chen Lin, the commercial counselor at the Chinese Embassy in Egypt.

5. Analysis: China's aircraft carrier: In name only

Retired Major General Luo Yuan suggested naming China's new aircraft carrier Diaoyu, after the Diaoyu islands in the East China Sea. It would demonstrate China's sovereignty over the islands known as the Senkakus in Japanese, he said. For a notable hardliner, it was one of the least bellicose reactions he has advocated throughout a series of territorial rows that have soured China's ties with its neighbors in recent months.

More harsh words from Romney on Chinese trade

Great. First this, and now the below from Bloomberg:

Mitt Romney says the U.S. must be willing to say “no more” to its rocky trade relationship with China. If elected president, he vows to brand China a currency manipulator on his first day in office. He also says he’ll place extra tariffs on Chinese imports to correct an undervaluation of the Chinese currency, the yuan, which helps make Chinese goods cheaper than U.S. goods.

That stance puts Romney at odds with President Barack Obama, who’s resisted formally rebuking China for its currency practices. No doubt the Republican challenger wants to differentiate himself from the incumbent in his dealings with the world’s second-largest economy.

After reading those first two paragraphs my first thought was, "I'm sure US businesses would love being shut out of the Chinese market." Thus I had a small chuckle when I read the next paragraph:

The problem is that getting tough with China also puts Romney in conflict with a bastion of Republican Party support, the U.S. business community. Many of the largest U.S. companies favor a less confrontational approach. They’re too concerned about being locked out of the Chinese market to risk taking a bold, public stance against objectionable Chinese practices.

China's not an evil place; there are some really great people here, just like there are in the US. Both countries have their issues. Why does this have to be the second Cold War? Can't we all just find a way to work together for the mutual benefit of both societies? I love living here and I value the relationships I've made and the friends I have. I'm also here helping US businesses expand in the country and access this market, a market that has a lot of potential and value.

Mr. Romney, please think before you speak. Please. 

Today's Big Stories for July 18, 2012

Africa, Stimulus, and Luxury Loses. 

1. China Touts Relations With Africa Amid Grumbling

China touted its close relations with Africa on Wednesday even as some countries there have grumbled about problems arising from being locked in a tight embrace with the resource-hungry Asian economic power.

Commerce Minister Chen Deming wrote in the China Daily newspaper that total trade between China and Africa hit a record high of $166 billion last year. 

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In May, Zimbabwe's labor minister said the government was investigating persistent reports of rampant abuse of workers by Chinese employers.

2. China's Premier Promises Job Creation Efforts

Premier Wen Jiabao said Tuesday China's employment situation "will become more complex and severe" and promised to generate jobs, according to a Cabinet statement, adding to suggestions Beijing might launch new stimulus efforts. Speaking at a Cabinet meeting, Wen promised to help small companies and improve vocational education and training for farmers, the statement said. It gave no details of possible initiatives.

3. Luxury Loses As China Slowdown Reinforces Regime Change

“Lower earnings resulting from China’s economic slowdown may lead to companies spending less on business gifts,” said Luk Fook Chief Financial Officer Paul Law. “Corporate gifting helps foster business relationships: You can cut the red tape and speed up approval processes when you have good relations.”

Law said gold bars carved with “lucky” characters, some costing at least HK$20,000, are among top picks for business shoppers at the jeweler’s stores.