Comments on: U.S., China Pledge Joint Fiscal Effort in Global Crisis http://calpolymbatrip.com/2009/china/us-china-pledge-joint-fiscal-effort-in-global-crisis/ The MBA Graduate Program at Cal Poly Sat, 11 Feb 2012 06:34:05 +0000 http://wordpress.org/?v=2.6.3 By: Andrew Welborn http://calpolymbatrip.com/2009/china/us-china-pledge-joint-fiscal-effort-in-global-crisis/#comment-8779 Andrew Welborn Fri, 23 Jan 2009 03:53:32 +0000 http://calpolymbatrip.com/?p=1191#comment-8779 The point Jason brings up about China’s suggestion to reform our excessive consumption and debt provides insight into the future of the Chinese economy. It has long been debated if China has been outgrowing their sustainable output and this statement, to me, affirms that they are beyond their growth comfort zone, fueled over the past decade by some of our excessive spending. This economic downturn may be exactly what they need to weed out weak industries and create strategic changes that will allow them to grow at a sustainable pace. They are also taking advantage of the downturn to play or more central role in foreign economic changes possibly to further their own economic agenda. I am leery of their intentions due to the lack of transparency in their markets. Although the change in the value of the yuan may be due to external factors, it can’t be ignored that it may have been to further their economic position. My comments sound negative, but I applaud China for stepping up and affirming its own position, it may be exactly what the U.S. needs to reform our country to prevent being left in the dust of China’s progress. The point Jason brings up about China’s suggestion to reform our excessive consumption and debt provides insight into the future of the Chinese economy. It has long been debated if China has been outgrowing their sustainable output and this statement, to me, affirms that they are beyond their growth comfort zone, fueled over the past decade by some of our excessive spending. This economic downturn may be exactly what they need to weed out weak industries and create strategic changes that will allow them to grow at a sustainable pace.

They are also taking advantage of the downturn to play or more central role in foreign economic changes possibly to further their own economic agenda. I am leery of their intentions due to the lack of transparency in their markets. Although the change in the value of the yuan may be due to external factors, it can’t be ignored that it may have been to further their economic position.

My comments sound negative, but I applaud China for stepping up and affirming its own position, it may be exactly what the U.S. needs to reform our country to prevent being left in the dust of China’s progress.

]]> By: Chris Carr http://calpolymbatrip.com/2009/china/us-china-pledge-joint-fiscal-effort-in-global-crisis/#comment-8715 Chris Carr Wed, 21 Jan 2009 03:59:01 +0000 http://calpolymbatrip.com/?p=1191#comment-8715 The US-China relationship, I believe, is the most important relationship of this century. Think of the possibilities if we work together. Think of the destruction if we don't. I have few regrets in life, but one regret I have is that while I am young,I likely won't live long enough to see how the most recent China chapter and book plays out. Some issues will finalize the next ten or twenty years which I will see. Most will take 50, 60, 70 years or more -- long after I will be gone, assuming/hoping I live to be 80. You each are young enough where are likely to see whether the China story has a happy or sad ending and the role the US will play in that story. You are very lucky to have the opportunity to be a part of that story and shape the ending. The US-China relationship, I believe, is the most important relationship of this century. Think of the possibilities if we work together. Think of the destruction if we don’t.

I have few regrets in life, but one regret I have is that while I am young,I likely won’t live long enough to see how the most recent China chapter and book plays out. Some issues will finalize the next ten or twenty years which I will see. Most will take 50, 60, 70 years or more — long after I will be gone, assuming/hoping I live to be 80.

You each are young enough where are likely to see whether the China story has a happy or sad ending and the role the US will play in that story. You are very lucky to have the opportunity to be a part of that story and shape the ending.

]]> By: Eric White http://calpolymbatrip.com/2009/china/us-china-pledge-joint-fiscal-effort-in-global-crisis/#comment-8709 Eric White Tue, 20 Jan 2009 02:22:34 +0000 http://calpolymbatrip.com/?p=1191#comment-8709 I agree. Money talks. When China exceeds the U.S in economic output, what type of strategic position does the U.S. want to have? Certainly we would like to have an influence over a few key issues such as human rights, but in our current position, it is only our economic superiority that is keeping us on the negotiating table. If we are to have legitimate negotiating power, we need to clean up our act in sustainability so that we are not so completely dependent on another country to finance our deficit spending. Easier said than done, I know, but as Jason pointed out, a main focus of nearly every company today is sustainability and that is definitely a step in the right direction. I agree. Money talks. When China exceeds the U.S in economic output, what type of strategic position does the U.S. want to have? Certainly we would like to have an influence over a few key issues such as human rights, but in our current position, it is only our economic superiority that is keeping us on the negotiating table. If we are to have legitimate negotiating power, we need to clean up our act in sustainability so that we are not so completely dependent on another country to finance our deficit spending.

Easier said than done, I know, but as Jason pointed out, a main focus of nearly every company today is sustainability and that is definitely a step in the right direction.

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