China update

Here's What Was Weird About That Global Unemployment Chart

From Citigroup, a look at the unemployment rates in some major countries. Notice anything weird from the land of made-up economic statistics? (See answer below). 

Image: Citi

Update: A few commenters got it. Chinese unemployment doesn't fluctuate!

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Chinese investment brings hope, anxiety to industrial heartland

For many in this proud but depressed industrial town, Chinese President Hu Jintao's visit to an Illinois exhibit showcasing products made in the U.S. by Chinese-owned companies was a bittersweet reflection of new realities they were already living with. 

Just over a month ago, Saginaw's largest private employer — car steering systems maker Nexteer Automotive — rolled out its own red carpet: The company's new owners had come to town, all the way from China.

For a century, Nexteer had been a symbol of America's industry, employing thousands of workers. But the Chinese purchase of the company in November from General Motorsfor about $450 million in cash was one of the latest and largest Chinese investments in U.S. companies. It's a growing trend that has stirred both hope and anxiety here and across the country.

Mega-City semantics in China's pearl river delta

Yet the intention of the integration becomes clear when Ma Xiangming, the chief planner at the Guangdong Rural and Urban Planning Institute, articulates that: 

“The idea is that when the cities are integrated, the residents can travel around freely and use the health care and other facilities in the different areas.“ 

This is the key. The Chinese government still enforces the hukou household registration system for its citizens, making it difficult for people who move from one city to another to use the services offered by their new city. Restrictions for migrants to new cities are not only limited to healthcare and educational services, but to investment opportunities as well such as starting a business or purchasing a new home. 

By amalgamating the cities of the Pearl River Delta into one ‘mega-city’, this gets rid of the bureaucratic restrictions of the hukou registration. Now, the migrants who have left their native homes and settled in the Pearl River Delta can move more freely around the region. This is much more than semantics, it is a huge step forward in the liberalization of movement and opportunity for its citizens. It is unbelievable that The Guardian piece makes no mention of the significance of this development.

Gifting China

Why would a company with a competitive edge want to provide privileged information to gain business? What is there to prevent that “partnering” business to break off relationships once they drain the knowledge base? Certainly they do not hire us because we have a larger workforce. 

American progress has been fostered by questioning why. Why is something being done this way? How can we make it better? This leads to innovation. Innovation was a major reason our country progressed more aggressively compared to countries that teach their students to think in only one way. China could see us as a knowledge base to farm information from our corporations wanting China’s riches. 

China seems to present an image of more progress. By forcing partnerships to do business in China we may have taught their corporations our best secrets. “We” being not just the United States, but every other country with their top designers, scientists, and technologies sharing knowledge. 

Once they have this knowledge and know-how, why would they need us? That is the foundational problem, and one reason I have not pursued work in China.

Interactive graphic: China forex