China update

Inflation in China will cause the collapse of the regime

People all say that China is the world factory, but its production capacity is not targeted to China's own market. Instead, it is targeted to the high priced markets in the West. Its exists for the others. Measuring it by China's own market, it simply has too much surplus. This production surplus is in existence for the minority people to gain even more wealth. It uses the cheap labor in China and high priced markets in the West to make excess profit. This is the production purpose of the bureaucratic capital in China.

Half of these excess profits are in the Western market as profit for the big businesses of the West, while the other half is distributed within the Chinese ruling class in the form of Chinese currency, RenMinBi. Neither the businessmen nor corrupt officials in China feel that their money is secure, nor think this society is reliable. They exchange their RenMinBi into foreign currency, which makes China's foreign reserves to be the highest in the world while the RMB flows back to the market. Or they use the money to buy things like real estate as a way to preserve their money, which also results in the RMB flowing back to the market. So, as the real purchasing power represented by the money goes abroad, the money exchanged is still in China. This is the potential and gradually accumulating reason for the inflation.

The gradual accumulation of inflation was not immediately and directly demonstrated. Because of the presence of financial factors etc. as buffers, its outbreak needed a trigger similar to that needed to ignite of the gunpowder in a bullet. The trigger was pulled when the biggest pillar of China's economy got in trouble. This pillar is the cheap exports, which caused the economic recession and unemployment in the West. The Western democracy has to give priority to its constituents, and thus has to stop this type of economic model which makes minority people in the East and West rich, while for the most ordinary people bear the negative consequences.

...

China's economic policy is not to develop China's own economy, but to make some people rich. Its aim is to maintain cheap labor. So the Chinese Communist regime will not allow the Chinese currency RMB to appreciate, nor let the free flow of markets in between China and the foreign countries. Maintaining the enormous gap between the Chinese and the foreign markets is the fundamental policy for the Chinese Communist regime to get rich in unity with the capitalists in the world. Only an authoritarian regime could have done so.

Therefore, the existence of this authoritarian regime is the root cause of the deformed Chinese economy. As long as China is undemocratic, this situation will continue until the collapse of Chinese Communist regime.

When Innovation, Too, Is Made in China

To lift its patent count, China has introduced an array of incentives. They include cash bonuses, better housing for individual filers and tax breaks for companies that are prolific patent producers.

“The leadership in China knows that innovation is its future, the key to higher living standards and long-term growth,” Mr. Kappos says. “They are doing everything they can to drive innovation, and China’s patent strategy is part of that broader plan.”

China’s strategy is guided and sponsored by the state. Should that be a source of concern for the United States, and perhaps a trade issue? Or is the plan likely to resemble past efforts by other governments to give their companies an edge in global competition?

In the 1980s, the Japanese government was widely viewed as the master practitioner of industrial policy, and Japan Inc. seemed poised to overrun one American industry after another, including computers.

Hu Jintao Visits Poor Beijing Families, Vows to Narrow China's Wealth Gap

Chinese President Hu Jintao visited low-income families in Beijing yesterday in a gesture to show the government is trying to narrow the widening wealth gap in the world’s fastest-growing major economy.

“The party and the government attach high importance to the issues of people’s welfare,” Hu said on the 7 p.m. news on state-run China Central Television last night, “There will be more measures to improve the lives of the people in difficulty.”

The government’s effort to provide better social welfare to low-income people comes as China’s Gini coefficient, a measure of inequality, reached 0.47 in 2009, exceeding the 0.4 mark used as a predictor for social unrest, according to World Bank data.

The Beijing Human Resources and Social Security Bureau said yesterday that it will raise the minimum wage by 20.8 percent in 2011 to 1,160 yuan ($175) a month and increase pension and unemployment benefits. Inflation reached 5.1 percent in November, the highest in 28 months.

Finally China Decides Raising The Value Of The Yuan Is A Good Thing

China to Stop Subsidies to Vehicle Buyers in Rural Areas Starting Jan. 1

Video of a taxi driver in China

China May Integrate Beijing And Tianjin, Form World's Biggest City By Far

Female Chinese students resort to eating roundworm eggs to ensure they look thin for job interviews

Female students in China have been eating roundworm eggs to lose weight for job interviews - because employment is so hard to come by.

They hatch in the stomach, allowing those who take them to shed pounds without exercising or dieting in the Xiamen, China.

But swallowing the worms is extremely dangerous - and definitely not to be recommended for those wanting to shed the pounds in the New Year.

With jobs shortages across the country, women in China are under pressure to appear thin if they are to have any chance of landing a role.