10 November 2010

All Eyes On China As Pressure On the Superpower Mounts

Pressure on China is at an all time high with top economists and countries warning the superpower that unless it changes its dangerous trading strategy, economies world-wide will be severely harmed as the imbalance between countries continues to grow.

The Prime Minister, David Cameron, commented on the air of danger that China has created saying that the trade surplus, which overtook economist’s predictions, had created a ‘dangerous tidal wave of money’ which is now flooding the global economic landscape.

The trade surplus for October was recorded at $US27.15 billion. This is despite the fact that the previous month’s trade surplus was nowhere near as grand; in fact, it declined to just $US16.9 billion

The Prime Minister was not just concerned with China freeing up its own economy, but he was also commenting on China’s rigid political system which leave civilians with little political freedom.
In a public speech at Peking University, he argued that the two liberties are inextricably linked with one naturally implying the other. The Prime Minister, who is on a state visit to Bejing added pressure on China over its Yuan currency as well as challenging the communist regime and asking from China, “a greater political opening.”

Brian Jackson an economist from Royal Bank of Canada, commented:

“Chinese exports and imports are both continuing to record impressive growth, defying concerns about weaker demand both home and abroad. But the disparity in global trade balances is the key point that will likely attract attention as senior officials fly in to Seoul for the G20 meeting.”

However, Cameron tried his upmost to abstain from making moral judgements over China as he commented that Britain was nor perfect either, in an attempt to smooth over any offence taken by the hosts of the speech in Bejing.

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