Business

Will China be the saviour?
by Zuzana Zelenakova

The whole world is struggling with the consequences of the global economic crisis and is trying to recover, and as it seems China is always one step ahead of the rest. Although the country´s economic growth can be described as slow compared to the previous years it is still very decent regarding the current situation. According to the experts and media reports China is the one to play the key role in the globe´s recovery from the economic crisis. The latest step has been the purchase of brake and suspension unit of the American auto-parts maker Delphi Corp. From now on 3,000 employees are working for a new boss, Shougang Corp. The steelmaker is one of China´! s oldest state-owned companies and also one of the largest. It specializes in the computer industry and industrial controls too. "Everyone's so desperate for cash that the Chinese show up with a checkbook and people say, `Yes, please'," says Arthur Kroeber from a Beijing research firm Dragonomics. China definitely knows how to use the global crisis for its own enhancement and speculates how to rise in more sustainable manner. "China certainly comes out of the crisis stronger rather than weaker, and it's the opposite for the United States," says Stephen Roach, chairman of Morgan Stanley Asia. Chinese banks are in good shape in contrast to the American ones and the US federal debt increases still. The country´s government realized that if it aspires to become a superpower it has to come up with a different strategy than the one applied for the last several decades. In the process of growing economically China will have to take into consideration also the socioeconomic en! vironment and consequences. "China is very likely to be the se! cond-mos t-powerful country — if it isn't now, then within a decade," says Kenneth Lieberthal, director of the Brookings Institution's John L. Thornton China Center in Washington.

related story (sgx15571): http://news.yahoo.com/s/ap/20091007/ap_on_bi_ge/as_meltdown_...

by Zuzana Zelenakova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who w! ant to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.

posted by Blog TechSource @ 2:46 PM