Facts:
- China’s foreign direct investment is currently US$6.6 billion
- China was the world’s 4th largest recipient of foreign direct investment last year after US, UK and France (according to the UN)
- Pull factors: Low manufacturing costs and a pool of 1.3 billion increasingly affluent consumers are luring foreign companies to set up factories in China.
- Due to investment inflows, China is now the world’s biggest producer of cell phones, computers and clothes.
Evaluation:
- Remember Economics? Trade surplus invites resentment from the US, causing it to slap protectionism and this has worsen their bilateral relationship (Read ConnECT issue 2007.2 for further details. haha =P)
- 1.3 billion of increasingly affluent consumers translate into more consumerism in China, which may have a dampening effect on its environment. The fact that currently China becomes the world’s most polluting country (defeating the US) is perhaps one growing concern.
- Environmental concern may due to irresponsibility of those manufacturing factories. The environment concerns are played down by the need to develop economically and efficiently.
Relevant questions:
- How far can a balance be achieved between environmental conservation and economic progress?
- Consider the importance of speed in modern society
- The term “superpower” is no longer relevant. How far DYA with this statement?
by Christina Amanda
Recent Comments