China's Economic Power

In Indonesia, Dunia Metal Works runs at 40% of its capacity.
China's economic power far outstripped that of an emerging country. It is hard for China to be seen as a friendly alternative to US Power. China has excess manufacturing capacity. Credit is almost free. China has done little to address unease over the value of the renminbi.Vietnam devalued its currency 5%. In Thailand there are complaints about their inability to compete with China. India has filed an unfair trade complaint. Some say that China can no longer pursue the same export-driven development model. The US is not able to absorb anymore trade deficits.

Recession Elsewhere, but It’s Booming in China
For the first time, Chinese will buy more cars this year than Americans. For more and more consumer goods, China is surpassing the United States. The Chinese are spending more. For years, the West has pushed China to increase domestic consumption and reduce its dependence on exports. China has $2.27 trillion in reserves. For the first time, China, not the United States, is a locomotive helping the global economy. China’s lending-based prosperity may also be sowing the seeds of future economic problems.


Confronting China's Quality Gap
Many Chinese manufacturers still have quality issues.Many companies have successfully outsourced production to China, achieving cost savings of 30% or more. Some companies have focused excessively on cost savings, shortchanging quality. Low-cost goods will remain in high demand, but quality will count more than ever.