Blog #2: China Cannot Wait Until Christmas- Steven Sciacchitano 9/7/2012

China is now subjected under a diminishing growth rate due to economic complications from the effect of Europe's financial crisis. Pan Junping is concerned that, because of this, he expects a thirty percent decline in annual sales from his toy shop company in Yiwu city, in eastern Zhejiang province. An economic report due on September 10th will show that China is still increasing at a 2.9% income rate, but previous years show a paramount of an 18% income accumulation. Without increments of annual income, China cannot support its goal to provide urban infrastructure and increase social welfare.

In just two days, China counteracted their problem with solutions of investing in their own infrastructure with over $150 billion to build new highways and airport runways. The structural development will benefit China commercially to promote enterprise and increase annual output. This infrastructure solution will enlighten not only themselves, but prove to other countries that implementing accessible routes to quicken enterprise will be greatly appreciated in the future. If this investment works, it could create a prime example of a nations' reinforcement to defeat national crisis.

To understand the importance of China's economy, companies such as Wall-Mart outsource jobs within their nation to gain more profit from the lower wages their workers obtain. This in turn helps Wall-Mart acquire more profit which creates more tax benefits to generally assist America financially. Since China's economy is slowing down, America and other nations such as Europe who cooperate with Chinese Solar Panels will also seem to trickle down because of the mass production China produces to help global economy. If not only China, but any other nation falls, it will disservice every other nation tremendously. The severe impact will cause nations to utilize more resources for production and for globalization to shift in terms of disregarding another non-dependent country . Controversially, the results will end up with nations using more scarce time to innovate products and generate income.

In my opinion, globalization has to mix harmony along with international integration and human connectivity, just like a family gathering during Christmas.











Sources:
http://www.bloomberg.com/news/2012-09-06/china-s-goal-of-10-trade-growth-drifts-out-of-reach.html
http://in.reuters.com/article/2012/09/07/china-economy-idINDEE8860E220120907