| Anit-monopoly law passed!!! | |
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| Sep 28, 2007 04:24 | #11   |
 | Quote: is oil really a matter of national security ? Exploiting oil in other countries is not, this shall be left to private companies it is a very profitable field. And the state doesnt need to get involved in it. Erencius, I should say that oil is really a matter of national economic security. Without it, do you think that China's economy will keep developing fast? Some related industries might be seriously affected and the speed of China's economy might be slowed down. In China, it is state owned enterprises that have controlled the sales and exploitation of oil. Those private enterpries do not have the chance to make profits from it. Why does US show its great concern of Middle East? I guess that oil is one of the main reasons. China is not exceptional. It is also looking for the oil outside. In Africa and Venezuela, it cooperates with corporations from those places to exploit or buy large amounts of oil to satify its domestic demand. What does this suggest? Oil is very important for any nation. Sometimes, the government should not let the market to decide the price freely. At present, the oil price keeps surging. In order to meet its domestic demand, China buys oil outside at high price and then sells it at low price in the domestic market. This move is not in accordance with the market rule. But China should do it because it is in a special situation. The CPI is too high and the inflation is emerging. Confronted by this, China has to buy at high price and sell at low price. |
| Sep 28, 2007 09:39 | #12 |
| Quote: "Why does US show its great concern of Middle East?" You are right on this point China is not the only one interested in other nations oil. What I meant is that China is the only one that uses public companies to do it. Usually it is private companies job because it is extremly profitable... And actually the Chinese government is making an enormous mistake doing so. Why? Because oil is sold in China like if there is plenty of on the market. But it is affecting worldwide Economy. I m not even talking about the effect on the planet, since China is about to become the biggest polluting agent in the world. Yes China has to develop but not to the detriment of all the other nations. Letting prices follow the market would reduce the consumption and slowly reduce the prices of oil also. |
| Oct 4, 2007 22:28 | #13 |
| Quote: I m not even talking about the effect on the planet, since China is about to become the biggest polluting agent in the world. ERENCIUS, how can you make such a predication? Since China is a developing country, it needs time to develop and improve itself. China has made great damage to the environment while developing its economy. But it has been aware of the horrible effect and has started to improve the environment situation. Most developed nations have experienced this period. Do you remember the London Mist? That is the side effect of the industrialization. How about the greenhouse effect? Who should be responsible for this? Some developed contries did not sign the agreement to decrease its emission of carbondioxide and other gas. I do not think that any kind of development could cause no harm to the environment. What we can do is to minimize the side effect. Letting prices follow the market would reduce the consumption and slowly reduce the prices of oil also. In order to curb the potential problems (inflation risk), China has to do so. If your nation faced any serious problems, for example, the economic crisis, do you think that the government should adopt some administrative means? Of course, the problem that China faces is not as serious as economic crisis. But the inflation is horrible if it really occurs. |
| Oct 5, 2007 12:11 | #14 |
| Development implies more pollution of course, however there are several ways of development not just one. The one we had happened in the 18th century using the technologies we knew at that time the problem here is that China is developing in the same way as us in the 18th century though we are already in 21st century. Just look at the Indian example, you ll see a great difference about it. Inflation is soaring in China indeed, but there is no right for China (neither any other nation) to export the crisis they shall suffer to another country. There are many way to cool down a soaring inflation and this way is not efficient enough as you can see and nocive to the entire world. |
| Oct 6, 2007 05:20 | #15 |
| I have to agree with Erenicius on the matter of letting the price of oil follow the market as it will make the market find a "Better Way' as markets, not Goverments always do. Dodger. |
| Oct 8, 2007 01:43 | #16 |
| Quote: Inflation is soaring in China indeed, but there is no right for China (neither any other nation) to export the crisis they shall suffer to another country. E, I agree with you on this point this time. China should find other ways to curb the inflation. Just look at the Indian example, you ll see a great difference about it. E, Can you explain it in details? What road does India take to develop their economy? Thanks! |
| Oct 8, 2007 15:40 | #17 |
| I answered partly their already. If I got time I ll complete my answer. http://community.travelchinaguide.com/forum2.asp?page=1&i=39987#R249256 |
| Oct 8, 2007 15:41 | #18 |
| sorry there (should not write when I am tired). |
| Oct 9, 2007 11:56 | #19 |
| Yes, China must protect itself against idustries connected with its security being taken over by foreign companies. However, it must not use the regulations to do what the USA and Europe are doing to prevent China and Middle Eastern countries investing in their countries. (I have made a longer comment in another thread earlier). China needs foreign investment to continue its high growth rates and will need it for a long time to come (despites its great economic muscle). As a balance China needs to invest overseas. This is globalisation, it is interdependence, which hopefully will lead to greater international harmony. |
| Oct 9, 2007 12:11 | #20 |
| Erencius mentioned that a growth rate of under 7% might cause China to implode because of civil unrest... OK, we must tread carefully on this subject as HK TV news had a comment from Greenspan (ex US Reserve bank president) edited out on later editions when he made a comment on similar lines... but I agree with the sentiment of Erencius's views. At present, the Chinese government has a popularity higher than most of the 'western democracies'. And why not, the economy is booming and looks set to be for years to come, and China is respected internatioanlly because of its growth and economic might. But when it does start to slow down, when the university graduates can't all find jobs, when prices start to rise faster than incomes (or so it seems to people), when the poorer elements see no end to the widening gap between rich and poor... what then? This is a real issue which will test the nation's leadership. The current leadership knows what the issues are even though it sanctions editing out of comments in the news which really only state what is government policy .... I hope it is only a question of timing! |
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