Emboldened China Plays $100 Billion Trump Card
China offered new details on its commitment to rein in greenhouse gases and called on rich nations to speed up delivery of the $100 billion in annual climate-related aid they’ve promised by 2020. Su Wei, China’s lead climate negotiator, coupled his comments on China’s commitment with a call to accelerate funding for climate aid, shifting the pressure to industrialized nations, led by the U.S. and European Union, to do their part toward reaching an agreement next year. The “$10 billion is just one 10th of that objective,” and “we do not have any clear road map of meeting that target for 2020,” Su said. Climate aid is “a trust-building process,” he added. —Alex Morales and Reed Landberg, Bloomberg, 5 December 2014
Rich nations’ pledges of almost $10 billion to a green fund to help poor nations cope with global warming are “far from adequate,” particularly Australia’s lack of a donation, the head of China’s delegation at U.N. climate talks said on Thursday. Su Wei also urged all rich nations to deepen their planned cuts in greenhouse gas emissions, signaling that a joint Chinese-U.S. announcement of greenhouse gas curbs last month does not mean an end to deep differences on climate policy. —Reuters, 5 December 2014
Source: Dr. Benny Peiser and the GWPF
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You mean it’s about the money???
“When a fellow says, it hain’t the money but the principle o’ the thing, it’s th’ money.”
Kin Hubbard
Money is no problem.
Mr. Obama will be happy to have the Fed “quantitative-ease” all the required billons.
Just did that with the trillion dollar note the Chinese called in. Their response to another hit on the RMB will be interesting I’m sure.
The “deal” the US brokered with China is so bad as to be almost unbelievable. Giving away the farm to gain a legacy.
China’s strategy is clear to anyone that takes the time to listen to them. The Chinese have not forgotten the humiliating concessions they were forced to grant the developed nations 150+ years ago. They intend to repay the humiliation with interest.
With their agreement with the US, China has now placed itself above reproach. China can continue expanding emissions as fast as it wants for at least 16 more years. The developed nations can cut their emissions to zero and China will be more than happy to make up the difference.
In return China has repeatedly made it clear that it will lead the developing nations in demanding that the developed nations pay the $100 billion a year they have promised. How soon folks forget China led the 132 country walk out of the Warsaw conference. Clearly a trial run for 2015.
It is clear that China intends to humiliate the developed nations in 2015 for failing to make good on their $100 billion a year commitment, and thereby shift the blame for the collapse of any climate agreement on the west. Even though they are the worlds biggest source of emissions, China is completely free of controls for the foreseeable future.
In return, the developed countries will be left with no choice. Either they will have to pay up, or they will be blamed for any future damage due to climate change, with the possibility of greater claims for damages going forward. Extortion 101. Payback time.
No wonder, it’s the Chinese style.
Can you really blame China for exploiting the stupidity of Western governments? The Chinese government wants economic growth and a better standard of living for its citizens.
LOL 🙂
I always said it was going to end up with a pile of rabidly converted 3rd worlders with hands out for funds..
for climate events that are NOT happening.
so lets see all the greentards start handing their pretty lavish funding over, WWF oxfam and all the rest sucking up taxfree handouts for spurious warming, better to hand it over to the poor now..really;-)
Petard , hoisted
Given that China now has the largest economy in the world, are they not amongst (if not the ‘leader’ of) the ‘rich nations’?
China is 2nd richest and a long way behind the USA, for the moment. Another 6yrs of socialism in the west will see that change.
No, china has now passed the US, and we are funding them. Thanks, O!
I believe China just passed the U.S. in GDP.
Not even close to the “2nd richest.” They have around 5 times as many people, and nearly the same GDP. Do the math, that’s rather poor.
Mark
You want do go for GDP per capita, then the U.S. is in 10th place.
China has as many billionaires as the US and more millionaires.
No, no, no. China is a poor developing country, this has been decided by the UN itself, when it comes to dividing the world into rich and poor in the climate discussion. South Korea is also a poor developing nation, which has nevertheless heroically offered to host the Green Climate Fund secretariat. No doubt they buckle under the pressure, but some sacrifices must be made to save the planet.
http://unfccc.int/cooperation_and_support/financial_mechanism/green_climate_fund/items/5869.php
The money which has trickled in so far, has at least made it possible to set them up in style, but not sure how much has beeen allocated to other poor cousins.
“The commitment from developed countries is meant to ramp up to the already-promised $100 billion per year in climate aid by 2020.”
I doubt very much that this “promise” is anything more than a vague intent. Not even climate negotiators have anything like that power to promise such sums from their governments.
http://insideclimatenews.org/news/20141110/ahead-global-talks-all-eyes-us-contribution-climate-fund
The sums do not come from governments , but from voters and taxpayers . Do we not have a say?
I want register as someone who needs help coping with climate change. My Ontario hydro bill has tripled in recent years to fund windmills and solar panels on remote farms. It is incredibly cold and heating the house is a lot more expensive that it used to be.
Where do I apply?
Do we not have a say?
==========
every four years you get a choice. do I elect a crook or an incompetent?
Largest economy on an absolute basis, on a per-capita basis, they are well down the list.
We’re catching up (or is it down?) fast!
I totally agree we pay them based on a per-capita basis.
[Rather, “I totally agree THEY pay US based on a per-capita basis.”?? .mod]
They are indeed relatively poor, per capita, and that’s because there is not enough electricity generation. It’s surprisingly naive of the west to imagine that China has any bigger issue than that or that they will bargain with us in good faith over that issue at the present time.
Don’t get me wrong. I wish China (and India, Africa, et al.) the best of luck. A rising tide lifts all boats. America will in all likelihood see its golden age — as the #2 power. Moreso than if we were #1, in absolute terms, at that.
But in our current situation, it is not realistic that we can expect to deal with China (or India) in what we consider to be good faith on this issue. Especially not with deals that bring the 1935 Anglo-German Naval Agreement forcibly to mind.
China just surpassed the US as the largest economy on earth. With much higher growth rates than the US, the RMB is poised to become the global currency to rival the USD, and to end US political dominance via the World Bank. Need to build a new coal fired power plant? World Bank will only lend money to buy solar panels and windmills? Talk to China, they have money to lend.
Unless something changes drastically, the Chinese economy by 2030 will dwarf the US and EU combined, on a scale we don’t fully appreciate. The pace of development in China is a modern marvel. Forget labels like socialism and capitalism. China is a consumer economy, with 400 million online shoppers, and another 600 million in waiting. The chance for a better future drives society. Ideology simply holds people back.
Australia will lead! In the sanity department. IN the climate wars, Abbott is the new Churchill.
I agree!
How about a Churchhill bumper sticker:
Warming at the observed rate has been beneficial.
CO2 is NOT POLLUTION.
The only thing we have to fear is fear (mongering) itself!
Very dangerous and expensive.
Here in Australia if you put anything other than a leftist bumper sticker on your car, you will be paying a very expensive repair bill after your car is vandalized.
As is always with the left, free speech for all provided you all speak left.
Since most of the candidates he supported lost the November election, perhaps Tom Steyer could pony up the funds to combat climate change, no doubt something that concerns him deeply.
China has overplayed its hand. Steyer and company have been given a free ride because no one cares about the rhetoric. Nations have simply made a pledge to contribute 10b$ to the green fund. When it comes time to pass legislation to actually spend this money heads will roll. Multiply this tenfold and you have armageddon for the AGW scam.
Maybe I am underestimating China and this is their end game.
China has probably played its best hand. If there is a failure to deliver the pledged money then China can renege on it’s pledge to stabilize it’s co2 emissions by 2030. Why do you think they have come out with this statement now?
Grrrrr, I meant “its” not “it’s”.
“If there is a failure to deliver the pledged money then China can renege on its pledge to stabilize it’s co2 emissions by 2030.”
And also it poses as being a friend of the third world with this “call,” trying to forestall their criticism of it when it refuses to sign on to any binding deal in Paris.
any binding deal in Paris
===========
are we going to start bombing countries that fail to live up to their emissions agreements? or maybe sanctions? maybe obama can give them a stern talking-to.
how exactly is any “binding deal” actually going to be binding?
Obama is a clown. What did anyone expect from a social organiser. Total, utter, complete halfwit. LoL The chinese and the russia are piss taking and the idiot hasn’t noticed.
They peed in his boots and told him it was unprecedented rains triggered by runaway global warming.
And he still hasn’t figured out how to empty them, even with the instructions on the heel.
In short China is not merely happy for other to shoot themselves in the foot ecomonically they have some suggestions as to where people can put the bullent too.
“$10 billion is just one 10th of that objective,” and “we do not have any clear road map of meeting that target for 2020,”
But…the agreement is that rich nations shall give 100 billion dollars EVERY YEAR, it is not the captial of the fund which has this amount. Or if it is, it must be completely renewed every year. Has anyone seriously believed this could be remotely realistic?
“The fund is meant to be the biggest single funding route for the $100bn (£63bn) that developed countries have pledged should flow to poor nations each year by 2020, to help them cut greenhouse gas emissions and adapt to the effects of global warming.”
http://www.theguardian.com/environment/2012/aug/23/un-green-climate-fund-climate-change
How large would a fund which provides 100 bilion a year in surplus need to be? 2000 billion at least I should think. Well it’s soon Christmas time, but still!
China now largest economy http://on.mktw.net/1BksiJG
Lots of countries pledge $billions to UN-led efforts but they rarely provide the actual funds. The Green Climate Fund received only $55M in real contributions by the end of June,2014.
Let’s watch to see how much actually gets provided over time.
Can anybody help this idiot out? I want the name of just one of the Presidents advisers that joined the dots together and give him the right advise in the last 6 years!!!!
It was all Left advice.
Extremely
China are playing Western politicians for the fools they are, quite beautifully.
* Disregard all invitations to commit to any serious cuts in carbon. This drives Western politicians crazy.
* Hold back from making any premature commitment whatsoever to ascertain precisely how stupid your opponents are (and don’t interrupt them while they’re making their mistakes).
* Having established you’re dealing with jaw-dropping, planet-sized stupidity, request more cash than you could possibly imagine for ‘climate reparations’.
* Strike a serious-looking pose and state; ‘this is a serious problem created by the West’!
* Sit tight-lipped while your commercial opponents agree to hand over untold tens of $billions – to pay for infrastructure you would have installed yourselves anyway.
* Nod approvingly, bow deeply and remind the West that ‘while this is a start, it cannot be the finish’ and that you’ll be back soon for some more cash to Save The Planet From The Problem Caused By The Wicked, Selfish West.
* Go home, count the money and laugh yourselves hoarse.
* Rinse, repeat.
“* Strike a serious-looking pose and state; ‘this is a serious problem created by the West’!”
Well yes, it is that. Mann and all his men made it.
Good one, red. I have been watching the Chinese play our governments for years.
“a joint Chinese-U.S. announcement of greenhouse gas curbs last month does not mean an end to deep differences on climate policy.”
Hello, Paris! And may you live in interesting times.
It has always been about money and control . The science was manipulated and corrupted to support the demand for money for United Nations . Where is this money going to come from? More taxes.. North America is going to be taxed more to fight global warming even though the North American climate has actually been cooling for nearly two decades as annual temperatures in United States have been declining since 1998 or 17 years , so it has very little to do with science or protecting the environment . People all over the world are waking up to this fact. as we saw in this world wide poll.
GLOBAL TRENDS 2014 SURVEY by IPSOS –MORI OF 16,035 persons in 20 countries between September 3 and 0ctober 15 in 2013 found the following . The question was
THE GOVERN MENT IS JUST USING ENVIRONMENTAL ISSUE TO TAX US
58% Of THOSE POLLED AGREED
GERMANY 61 %
GREAT BRITAIN 54 %
US 50%
CANADA 50 %
The Premier of Ontario said early this week that a carbon tax would be used to raise money to pay for additional programs the province needs – nothing to do with ‘climate change’ mind you, just a way to get more money.
end climate change – tax the co2 in beer
end poverty – tax the poor
end stupidity – tax politicians
herkimer: Of course the government is using the environment to tax us more, as per:
United Nations – Our Global Neighbourhood – 1995
“To keep global resource use within prudent limits while the poor raise their living standards, affluent societies need to consume less. Population, consumption, technology, development and the environment are linked in complex relationships that bear closely on human welfare in the global neighbourhood. Their effective and equitable management calls for a systemic, long-term, global approach guided by the principle of sustainable development, which has been the central lesson from the mounting ecological dangers of recent times. Its universal application is a priority among the tasks of global governance.”
Give us ‘Your Money’ and we will make the world a better place for you!!!
One world government is the ultimate end game!
Define poor.
China+Hong Cong has a reserve of over 4.2 trillion in USD. Us currency reserve is $448 billion, according to current world bank numbers.
As of Septmber 2014, China’s treasury securities holdings are $1,266,300,000,000. Hong Kong’s are $159,000,000,000 for a total of $1,425,300,000,000, or $1.4T.
Even though the Fed now holds more treasury securities than Chinabecause of Quantitative Easing,* it’s completely immaterial. The US federal government issues the currency. There is no factory in downtown China making USD that we borrow. Does. Not. Happen. That’s the equivalent of a global-warming-causes-honey bees-to-buy-igloos argument.
The US Treasury trades $500 billion to nearly $1 trillion in treasury securities every single day.
I don’t know what the World Bank could be referring to for US holdings, could be part of the amount the US donated to the World Bank.
——————————
Quantitative Easing (QE) is not what the know-nothing TV pundits have been telling you. The Federal Reserve has two types of accounts: checking and savings, just like your own bank. (Forget the Fed’s fancy names) Treasury securities are always held in Fed savings accounts, or your bank’s savings account at the Fed, even if you buy them as an individual. Always. Think of them as government CDs. For QE, the Fed buys treasury securities on the open market from ‘primary dealers’, the only ones allowed to sell them (great work if you can get it). The Fed now owns the treasury security, and the seller has the cash. The majority of sellers who put their treasury securities up for sale with the primary dealers are banks, who park their cash savings ***in excess of $250Gs*** in treasury securities because the FDIC only insures commercial bank accounts up to $250Gs.
As I said, the Fed now owns the treasury security, and it is now getting the monthly interest, instead of the seller in the private sector. That means QE actually removes that interest money from the real economy. Last year that interest was around $100 billion. At the end of the year, by law since 1947, the Federal Reserve returns those interest profits to the US Treasury, extinguishing $100 billion in currency. So why does the Federal Reserve do this ridiculous thing, essentially moving money from savings to checking? Because Democrats and Republicans have ZERO IDEA how the monetary system works and even less idea that it is their constitutional duty as Congressmen to enact fiscal policy and create jobs.
Here’s the golden rule: when the economy is in the tank (no sales) and unemployment is high, you do two things. (1) Increase spending, i.e. the deficit. (2) Cut taxes. Unemployment is always, always, always a sign that the deficit is too small.
[And I’m not buying the new job figures. It was hiring for Black Friday, etc, sales, which unfortunately turned out to be 10% below last year.]
If you think it is the science is settled and we should listen to the scientist , here is what the world said about that in the same survey.
EVEN THE SCIENTISTS DON’T REALLY KNOW WHAT THEY ARE TALKING ABOUT ON ENVIRONMENTAL ISSUES
48% OF TOTAL AGREED
GERMANY 58 %
GREAT BRITAIN 45%
US 43 %
CANADA 38 %
So what is really happening ?
THE CLIMATE CHANGE WE ARE CURENTLY SEEING IS A NATURAL PHENOMENA THAT HAPPENS FROM TIME TO TIME
48% OF TOTAL AGREED
GERMANY 39%
GREAT BRITAIN 48 %
US 52 %
CANADA 41%
If certain climate-obsessed groups get their way perhaps we won’t have to worry anymore about that pesky, annoying and waste-of-time process of asking citizens what their opinions are on matters of importance…
It seems that is already the way it is in Europe, as the EU functions unelected.
Every so often on this site we see comments to the effect “oh please just talk about the science, don’t talk about politics.” Well, this kind of story is proof (as if any more was needed) that MONEY is what this entire “global warming” scam is about, and politics is all about how that money will be procured and divvied up. The “science” is now an almost trivial sideline to this story; it only exists as a way to provide a thin, gruberized cover for the actions of those who are striving for power and money.
We also hear people who wish we wouldn’t go into “motivations”, but when the motivations are so transparently about seizing power over the rest of us, then their motivations need to be pointed out – as Tim Ball did, and was sharply criticized for doing.
Now I don’t really blame the Chinese for taking advantage of all of this – that’s what the Chinese government has always done and will always do, and is a strikingly rational course of action from their point of view. The ones I blame are the charlatans in the US and western Europe who aid and abet this thievery, in the hope that they can grab a few personal crumbs of wealth in exchange for selling all of their fellow citizens out. Because that is exactly what they are doing.
@WWS – I do not think China is unique in that respect. Most countries would take money freely offered with no strings attached.
http://youtu.be/RJkxsFskCcQ
Badfinger…. or a Paul demo.
Wealth redistribution for global warming damages that do not exist. Awesome. This is perfectly part of the UN’s Agenda 21. Their plan is to make undeveloped countries dependent on charity from the developed countries such that they will never develop.
First, most of the funds will go to the governments and dictators and not to the people
Second, it would be counter-productive, from the point of view of the dictators or governments, to actually use these funds to decrease the poverty of their people. If they did so, their share of the charity pie would decrease. Instead, their goal will be to further impoverish their own people, feigning all kinds of normal weather events as unusual and extreme, to be able to demand a greater portion of the pie.
This is the UN’s plan to cripple poor countries from ever developing, while fatally bleeding the economies of developed countries to bring them down to the standard of living of the undeveloped, poor countries.
Their goal is to de-develop the Western World which they see as unsustainable. What they refuse to recognize is that it is developed countries that have the wealth, resources, and time to clean up environmental problems and put in place policies to prevent future problems. It is the poor countries who simply do not have the time or wealth to not pollute as their goal is to live through each day somehow.
The UN is Evil Incorporated and should be dissolved. It’s true agenda from its inception is now out in the open. Their 40 chapter Agenda 21 is even on their website for all to see.
Few people actually read the plan and even fewer are willing to believe that the UN is out of conquer the world and retire the human race to an agrarian, dirt-scratching society ruled by a powerful elite. As in Hunger Games, the elite (slave masters) will be partying 24/7 at the expense of the isolated Districts (the slaves), that are purposely cut off from each other to make them totally dependent not he largesse of the Capitol (slave masters).
No problem. Since the U.S. doesn’t have the money they can just borrow it… from China.
(-;
I’ve got a hunch that’s actually the plan. Or, just print what they need…
The U.S. just did that. Print the money, that is.
Again.
Wow, China agrees to INCREASE their emissions for two decades.
Obama takes credit for this great deal, and agrees to try to inflict more expense on the US NOW.
China then asks for funds NOW to support their increase in emissions and new coal fired power plants.
======================================================
Obama is the smartest man in the room, if his goal is to cripple the US.
If you’re a fundamentally harmful buffoon, goals are secondary to what comes natural.
No, this is not the case, no one is this stupid. When Michelle O. states just after her husband was elected that “this is the first time I have been proud of my country” you get an idea about these people. They have hate in their hearts. No buffoon could script what has happened to the USA in the last 30 years, this kind of power grab can only be attained by very, very smart people. Who are these people and what is really driving them, like these dudes: http://www.reddit.com/r/science/comments/2oczj8/science_ama_series_we_are_dr_david_reidmiller_and/
That is the goal of the Democrat Progressivist Party and they set up Obama to carry that out.
China saw Obama coming and took him to the cleaners. There’s only one country that wins when China “negotiates” and its not the US.
According to the International Business Times, US exports to China rose 300% in the last ten years and run at $100 billion/year, plus $35 billion/year to Hong Kong and they rose 100% for exports to the rest of the world.
Other sources show China is the third largest buyer of US goods and services, whereas, with the exception of HK (China’s biggest export destination – presumably it gets shipped onwards?) the US is China’s biggest market at about $370 billion/year. After 10 years, China gains $2.7 trillion from the US alone. And it tries everywhere to spend the current surplus (State money) of about $4 trillion – for example in Africa and Brazil, on projects that will earn it even more money.
A substantial proportion of this trading power has been built with Western and Japanese/Korean capital flows that also expect a good return (5-8% was once common). In reverse flow, Chinese investment abroad, particularly in the US, is strongly focussed upon real-estate ($14 billion/year) seen as a safe investment compared to China’s home property market bubble which many expect to burst.
Obama’s advisors are all aware of this dynamic, of course. One way of seeing it is to say that the US has to be sweet with China – and both know that $100/billion a year to impoverished climate-vulnerable states will never materialise (total was $55 million last year)! So it is all smoke and mirrors! I ignore the facial characteristics and past histories – and focus instead upon the same-same business suits and global capital flows. Now is the China of Everywhere! Only the office location of the bank managers has changed. And will change again when the Chinese bubble bursts – which should be about the same time as the globe cools and the global warming bubble bursts too!
So, we’re $235 billion/year ahead?
Exports are a cost to our country (because we are outsourcing our resources). Imports are a benefit (because another country is using their resources to sell to us). Assuming full employment of our citizens, of course.
China treated Obama the way a powerful country treats a weak one: a vaguely stated face-saving photo-op so the weak leader can look good while the strong country commits to nothing it wasn’t already going to do. We have become a bankrupt banana-republic dependent on Chinese money to fund our debt–how else would you expect them to behave.
Got that right, but I would say that China is laughing at the US. President, mocking him (which is very un-Chinese), even as it occupies the lesser position to the US. But George Osborne just opened up the first western market in Renminbi last week, the first step in the loss of reserve currency status for the US, so China is feeling its oats. It must be crowing over western stupidity.
Not a chance. China does not fund our debt. Not in a million years.
And we are not bankrupt. We, the US, are monetarily soveriegn. We cannot go broke. Unless Paul Ryan (an economic idiot) and Rachel Maddow (an insufferable bootlicker and polemicist) can convince the American people to demand the Government default.
When the US dollar is no longer the world’s reserve currency our “sovereign” dollar will mean very little.
Zimbabwe is also monetarily sovereign.
Sure it will. It did in 1939 and 1940 when three US government economists used the fact that the US was no longer strangled by a gold standard domestically (1934) to plan for the war and do it effectively.
Canada, Great Britain, Australia, and Japan all have “sovereign” currencies. What sovereign means is that the countries issue their own currency, their own state ‘units of account’. Sovereign means they do not have to borrow money from other countries, banks, or bond vigilantes, to pay for debts incurred in their currencies.
The United States government can pay for anything in USD that the American people authorize it to spend on. No debt to children or grandchildren involved. The problem is the majority of the American people don’t know this; neither does Obama, Jacob Lew, and the majority of Congress. The blind leading the blind.
But the bankers know.
[If we cease to be the reserve currency, it will be no more momentous than the Britain Pound ceasing to the be the reserve currency in the 1950/60s. But it will mean the US federal government will no longer be able to buy fuel for its military with keystrokes, nor will it be able to pay for anything it wants to buy in USD from around the world…again, with keystrokes, because the sellers will be demanding payment in the new reserve currency. Hope I’m being clear.]
No, it isn’t. “Convertible currencies such as the South African Rand, Botswana Pula, British Pound, Euro, and the US Dollar are now used for all transactions in Zimbabwe.” Since 2009. Zimbabwe experienced it’s first real growth year in 15 years, 6%, in 2011. It has the world’s supply of platinum, and the diamond field discovered in 2006 was the greatest find in the last century. Still, it has a long way to come back to what it was before Rhodesia became Zimbabwe.
Zimbabwe ditched the Rhodesian Dollar in 1980 when Mugabe came into power as PM. Domestic (mis)politics and involvement in other African wars reduced its value on the open market. A complete disaster, exacerbated by Mugabe’s destructive policies, which I’m sure you know led to the worse hyperinflation seen in modern history.
Rubbish, you need to stop listening to economic theory which has no bearing on reality.
The ability to print a sovereign currency does not mean you cannot go broke. It means you have a choice between printing and default when that time comes, and the end game is ultimately the same (excessive printing leads to a devalued currency and implicit default).
It becomes a politcal choice of default now and take the pain, or print now and take the pain later. You cannot simply print ad infinitum without consequences, this is amply demonstrated over thousands of years of monetary debasement.
As for China’s GDP, GDP rises as debt rises. China’s debt has increased massively as they build for the sake of building. GDP figures are not a good basis for comparing economies.
Pete,
I don’t know what country you’re from, but the US has a sovereign non-convertible currency with a floating exchange rate. It doesn’t “print money.” It did before 1933 when it was constrained by the amount of gold backing the paper currency up, but not since. In the US, Congress (per the constitution) appropriates spending. That enters ‘new money’ (or net financial assets) into the economy. on the non-government side, the people create new money called ‘credit money’ every time they take out a loan or use a credit card. The US cannot default unless some idiot in Congress gets his remaining congressmen to go along.
GDP is Gross Domestic Product. It’s the simple measure of the domestic sale of all goods and services in an economy. Debt has nothing to do with it, in the sense that it is not tied to GDP.
And just to add – when trying to track how much the US gains from Chinese growth – with a particular interest in electric turbine technology…..that’s pretty murky too! All the major turbine makers – most especially those for wind turbines, now use parts from China. But Chinese makers are set to dominate the market with a $15 billion loan fund for projects overseas. European and US renewable energy companies can build cheaper products now thanks to China and compete better with fossil fuels, and China will provide cheap loans for development. My guess is that Europe and the US still lead on larger turbine technology, but renewables are where China takes the lead. That $100 billion/year global banking fund (based in Korea?) has to be spent and managed – but according to what criteria? It would buy a lot of Chinese turbines! Or is that also American turbines with Chinese parts financed by Chinese loans? Tricky, no?
China realizes they need customers to buy Chinese products and the best way to ensure they have a healthy customer base is to demand the industrial nations use money that could be used for manufacturing be given in fistfulls to third world populations so they can buy Chinese goods. That has the added benefit of keeping the cost of entry into manufacturing so high these poor nations will never be able to dig themselves out. Sweet.
We went through this with Obama’s “Cash for Clunkers” program which was a scheme to save the failing Japanese auto industry. That created huge piles of reclaimable raw materials that were shipped to China where they were converted to cheap junk they sold back to us. The Cash for Clunkers program was an impulse for Japan but not one of any useful duration and was a failure like all short-view programs.