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
I agree with you.. Being the world’s largest producer of goods doesn’t gives much pride, if it is achieved by polluting the nation.
The environmental issues of China are the serious concerns of the world. China’s economy has already grown steeply, it is time now for the Leaders of China to look at the domestic issues and not just looking at the FDI inflows to the country.
a concerned neighbour,
Ramesh Natarajan, Dubai
Global Indian