China’s government officials have reported that the level of foreign reserves has been falling in China as noted by news agencies such as Bloomberg http://www.businessweek.com/news/2011-12-07/china-s-foreign-reserves-continue-to-fall-ex-pboc-adviser-says.html. There could be a number of reasons for why this is happening. First and foremost, it signals that flows of speculators’ capital have been coming out of China rather than going into China. Most likely, the worries about the crisis in Europe causing another global recession have caused another flight to “safety” which historically has meant that speculators pull money out of emerging markets quickly and park their money in Treasuries. Another reason for the capital flight could be that speculators fear the implosion of China’s real estate bubble that China bears such as Jim Chanos have been talking up the last two years http://www.charlierose.com/view/interview/10960. While no one quite knows what the total real estate liabilities are in China’s banking system, speculators would rather act first and ask questions later which has been a common reaction for any news item. Finally, the drop in reserves could also reflect the slowing exports to developed countries as Europe and the U.S. battle the sluggishness in their economies and China’s active steps to rebalance their economy to one based on domestic consumption.
Herman Cain has revealed an embarrassing truth about his politics which is that he lacks even superficial knowledge about the world outside of U.S. borders. When he said that China is a threat to the U.S. because it is developing nuclear weapons and later retracted his statement with a new statement saying China doesn’t have a nuclear capability close to that of the U.S., he not only undercut his original assertion, but he displays an ignorance that poses a danger to Americans and the world at large if he came to power.
Leadership selection is the most important job the citizens of a nation must do in a democracy; otherwise we might as well continue with monarchies. Continue reading
Welcome to the official website of the book, What the U.S. Can Learn from China. You can navigate through the site using the menu above to find out when Ann Lee’s next speaking engagements will take place, what she has to say about various issues in the media, and how to book her for future commentary, especially about China, the U.S., and the opportunities for improvement in both nations .
While America is still reeling from the 2008 financial crisis, a high unemployment rate, and a surge in government debt, China’s economy is the second largest in the world and many predict will surpass the U.S. by 2020. President Obama called China’s rise “a Sputnik moment”—will America seize this moment or continue to treat China as its scapegoat?
Many in mainstream media and in the U.S.government regularly target China as a threat. Rather than viewing China’s power, influence, and contributions to the global economy in a negative light, Ann Lee asks: What can America learn from its competition? Why did China suffer so little from the global economic meltdown? What accounts for China’s extraordinary growth, despite one of the highest corporate tax rates in the world? How does the Chinese political system avoid partisan rancor but achieve genuine public accountability? From education to governance to foreign aid, Lee details the policies and practices that have made China a global power and then isolates the ways the U.S. can use China’s enduring principles to foster much-needed change at home. Continue reading