China's next gold - FT.com

Summary:
China's rise as a manufacturing powerhouse should be no cause for hysteria. Above all, it is a story of human progress: millions of Chinese are being lifted out of poverty each year by the country's rapid economic growth. Furthermore, consumers in developed countries benefit from the "China price". Competition from China may lead to job losses, but so can competition from across the street or new technology. This merely reinforces the need for the governments of rich countries to help workers who have lost their jobs, just as they should also be providing business-friendly regulations and infrastructure, and an excellent education system. Bankruptcies and job losses are part of the incessant process of economic change. The developed world needs to continue to increase the quality and sophistication of its manufactured products. The true challenge posed by China as the workshop of the world is likely to be environmental: by buying so many products from China, we have moved greenhouse gas emissions to a place where they will not be curbed by the schemes of western regulators, and where they make a wonderful excuse for western inaction. China must be persuaded to play its part in global efforts to cut emissions. (Published: 12/08/08)

Notes:

• China is poised to overtake the US as the world's largest producer of manufactured goods
• no cause for hysteria
• good news far outweighs the bad
• e.g. in China itself:
  
• millions of people are being lifted out of poverty each year by the country's rapid economic growth
• a story of human progress
  
• too rarely acknowledged by those who fear China
• e.g. developed world
  
• citizens benefit from the "China price" as consumers
• competition from China can drive businesses under and destroy jobs
• but: so can competition from across the street, or from new technologies
• China's success reinforces the long-standing need for the governments of rich countries to help workers who have lost their jobs
• just as they should also be providing business-friendly regulations and infrastructure, and an excellent education system
• bankruptcies and job losses are part of the incessant process of economic change
• they would only be cause for a systemic worry if there was evidence that the developed world could not adapt to Chinese competition
• so far, there is little sign of that
• instead, the developed world continues to increase the quality and sophistication of its manufactured products
• the US willingly pays four times the Chinese price for electronics and machinery from other developed countries
• 15 years ago it would pay only three times
• suggesting that developed-country manufacturers are shifting towards ever more sophisticated goods

• true challenge posed by China as the workshop of the world is likely to be environmental
• by buying so many products from China, we have moved greenhouse gas emissions to a place where they will not be curbed by the schemes of western regulators, and where they make a wonderful excuse for western inaction
• China must be persuaded to play its part in global efforts to cut emissions;
  
• that task will be far harder than meeting the challenge of Chinese competition