The China debate: friend or foe? - Sara Hsu

Sara Hsu

China´s increased economic power, through BRICS´ alliances and the "One Belt, One Road" initiative, have been looked upon with anxiety by especially American analyst. We should not look at those steps as an evil movement, argues financial analyst Sara Hsu in the Diplomat.

Sara Hsu:

The BRICS alliance has been viewed by some to be a means through which China can exercise its power outside of the U.S.-dominated international institutions. The creation of a dollar currency reserve pool to avoid the need for an IMF bailout may point in this direction. The statement that economic sanctions should be lifted on Iran if the nation dismantles its nuclear program reveals a more neutral foreign policy than has been called for by the U.S. and European Union. Even China’s deep engagement with Russia on economic issues can be seen as skirting U.S. policy on Russia, which again in conjunction with the EU, has imposed sanctions on Russia for annexing Crimea. 

However, this may be a somewhat biased perspective. After all, if it were not for the dominance of the U.S. dollar and the growth-dampening impacts of IMF loan conditions, the creation of a dollar reserve currency may not be necessary. In addition, despite the imposition of economic sanctions on Iran, they have yet to achieve their end goal. So, is China wrong to engage Iran (and Russia) as an alternative to isolating them? These economic and foreign policy issues are too complex to be viewed as “following U.S. leadership,” or “pushing back against U.S. leadership.” China in the BRICS is attempting to promote the economic and political development of emerging markets, which are by definition not a part of the Western developed-nation group. 

These countries have their own approaches to international relations, and do not appear to be operating as an anti-Western body. China in the BRICS Summit acted productively, not only for China but also for other nations. The promotion of economic activity in various global regions helps to generate growth elsewhere, as growth is not a zero-sum game. China in the BRICS should be viewed positively and not as a threat.

More in the Diplomat.

Sara Hsu is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference? Do get in touch or fill in our speakers´request form.

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Brazil cannot survive on China´s ore demand - Arthur Kroeber

+Arthur Kroeber 

Brazil depends to a large degree on China´s demand for its ore. But that dependence is dangerous, economist Arthur Kroeber told a conference in the country. Demand will be high for the next five years, but then drop sharply, and cause trouble if Brazil has not diversified its economy.

From Latino Foxnews

Arthur Kroeber, a U.S. economist, said in a speech here Tuesday that China's real-estate sector has already reached its peak and therefore Brazil "must find other growth mechanisms." 

Kroeber added that Brazil must be aware that the recent sharp rise in raw-material exports to China will come to an end and cannot pin its growth prospects on a boom period. Driven over the past two decades by rural dwellers' large-scale migration to the cities and urban residents' desire to upgrade to more modern homes, China's housing market may remain strong for some time but is eventually headed for a fall, the expert said. 

He predicted that Chinese President Xi Jinping's government will take steps to slow the pace of the downturn and maintain China's construction industry afloat over the next five years, saying those policy actions also will keep demand for Brazilian steel stable. China is the biggest market for iron-ore exports by mining giant Vale, Brazil's second-largest company and the world's biggest producer of that base metal, the main ingredient in steel-making. 

"You have to be realistic. The demand for raw materials will never be the same," Kroeber said, adding that "Brazil must seek out new opportunities and see where it can gain an advantage because the game is going to change completely."

More at Latino Foxnews.

Arthur Kroeber is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers´ request form.

Are you interested in more experts on China´s outbound investments? Do check our list here.

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