China looks like becoming the worlds super-power. One of the reasons I think we have little to fear from China, is due to its size.
Sure there are a hell of a lot of them, but 90% of the population have never picked up a telephone. They have one of the largest populations on the Web, but I cannot see them swamping Google and Ebay?
No, I think its quality over quality. Just because there are a lot of heads, doesn't mean to say we should give in to that thinking. One of the reasons Chinese goods are flooding our markets, is due to cheapness. But they only achieve this price by not paying any real wages.
The Chines government took out a 500 Billion Dollar bond, to underwrite its whole economy. So they basically threw money at it, and paid us to take the stuff. All well and good, but there will come a day when they have to pay it back, and where did they borrow it from in the first place?
The Government love the idea of Communism, but only like it applied to the working class, not for them. There will come a day when the workers wake up and see this. A bit like the aristocracy in England in the 19th century. They wanted the industrial revolution but only for themselves. But they have to hand some power back to the shop floor, when they realised none of them were clever enough to work these new machines. And the clever workers were!
This is what will happen in China.
They clearly feel there is an up and coming problem, as they are now investing in the UK. Taking over the old Rover plant, they want to carry on making MG cars. There is even talk of them investing in a cotton mill in Lancashire.
The sad truth of all this is, that few of these companies are really Chinese. They are British and American companies which hide behind the Chinese flag. Sure they have Chinese nationals on the board, and maybe even pay tax to that country, but the power behind them is foreign.
Of course everyone has the rite to trade where ever they want, but trying to play the role of the merchant Princes might backfire on them. We certainly live in a different world now.
Take the new ship Queen Mary2. This was built by a French firm, on French soil. But it employed just as many English people as it did French. They may not live in the UK or pay tax there, but they are certainly British.
If the mood of the world turns sour and the wars of the future mean we might have to draw a line in the sand, where would China stand? The shape of the new world, would mean that no country could afford to go to war with any other. Russia's recent threat to re-deploy missiles at the west, would mean they were targeting their most valuable customers, and will certainly think long and hard before doing any sabre rattling. China would feel the threat of a new cold war, more than most, as they now have a population where expect a high standard of living.
The Government owns all the property. This will chance too. The world will see a host of hungry entrepreneurs all carving out their little empire. True to say there will be a lot of upheaval. But what ever happens, China will not stay the same. There will be problems coming from the far East, but not in the form of the monster Communist Block. Those days are finished.