Why does China prevail in the toughest of all times?

Through my amateurish yet naive analysis and observation, I have wrote many articles on the changing China and the critical roles which it will play in the foreseeable future. Yet, what I haven't write is why China prevails in the toughest of all times. In this article, I will attempt to examine the various aspects of how China comes to dominate others in the global finance arena.

We first have to look at the economy turmoil and market crash of late 2008. Look at how the Western society tumbles to smithereens because of the credit crisis, and how many banks, institutions, and companies has to be rescued by the governments with a tantamount injection of cash flow so to keep the infrastructure afloat, despite how this would eventually inflate the currency to astronomical values. We are witnessing abundant examples from the most recent on the European Union's reluctance to support the nearly bankrupt government of Greece to the exemplary example of the already bankrupt Icelandic government almost a year ago. For those not lucky enough to be rescued, filing bankruptcy and ditching client responsibility was usually the next best option, except by doing so often meant leaving countless hardworking people in the dark. The victims were often laymen earning meager wages, who with a slim hope for financial success invested their lifelong savings to trusting institutions, but eventually succumb to greed and an unforgiving network of loopholes which often allowed the fund managers to exploit for their own personal gain at the cost of their clients. The consequence of above completes the vicious circle with consumers forfeit buying power fueled by their lack of earning and default on the investments which means more cash injection from the government is required to keep the various vendors afloat.

So how exactly does China do it? How can it not only merely survive but profit and proliferate in the toughest of all times when other cash tight nations are scrambling to find solution to safeguard their very own existence? In the following, I have attempted to list and categorize several aspects of the financial success of China. This list is by no means complete yet at least it gives you an insight as why is China exceedingly more financially comfortable than any other nations at this very moment.

1. Population: China has the largest population, 1.3 billion and growing to be exact, which gives it tremendous advantage over other nations. The largest population means the largest workforce, requiring the largest demand and supply to keep its economy in check, making China one of the most attractive investment destination for both foreign and domestic companies. Thus, even in the midst of this economic downturn, China is still able to thrive due to the rise of a dynamic consumer-oriented middle-class, bringing forth significant investments opportunities for anyone who is willing to invest.
   
2. Labour: With the largest population comes the largest labour force available. One which significantly brings down the production cost due to the extremely cheap labour, and with the command from high above anything humanly imaginable is possible. Especially in the current downturn, the cheapest labour cost is often the most favorable for producers when both foreign and domestic consumers are struggling to seek deals with the most bang on their cold hard cash.
   
3. Perseverance: Chinese are like the Japanese in the fiftieths right after World War 2, right after their liberation from the imperial nuisance. In that era, the Japanese were able to endure and adapt to the constant hardship and humiliation to eventually propel itself as a global economic power with innovative breakthroughs that benefit mankind. By being a net exporter, Japan's economy was also more responsive to any sudden unexpected fluctuations. Likewise, China is now able to shake off the amnesia since the Culture Revolution and reposition itself as the next major economic power almost twenty years after its economic reform. Due to its wide income gap, Chinese citizens are ever more frugal and thanks to consistent savings years ago they are better equipped to handle crisis like the downturn than any other global residents.
   
4. Renminbi: By pegging the Renminbi at a lower than expected value and together with a handful of workforce always available to produce anything, China has the advantage over other nations when it comes to flooding exports with competitively below-cost pricing. When the average consumers worldwide are looking for bargains on almost everything to adjust to the economic downturn, this is one of the foremost leverages China has when it comes to providing a better service for the millions of bargain hunters. By doing so, it also guarantees the economy of China will not falter but persevere and flourish in this downturn.
   
5. Competition: Due to an overwhelming demand from the ballooning population, sales in the domestic market often encounters significantly more competition than those in other countries. Competition in a dynamic, market-driven environment bring forth numerous benefits not only for the Chinese consumers but also possible innovations, cost savings and reforms benefiting the state, which can ultimately use it as a leverage to bargain with other foreign states.
   
6. One Party System: The one party system rules over others, squelching dissidence, suppress opposition, eradicate unrest, which is the necessary evil when it comes to the fulfillment of a harmonious and cohesive society. Especially during the downturn, when inflation starts to rise the one party system can often effectively stabilizes and fixes the market price to ensure consumer satisfaction and lessen those complaints which would otherwise surge when price is no longer affordable. A precise and efficient way to execute the party doctrine is also another virtue of the one party system which "western democracy" lacks, especially when the public consensus maybe detrimental to the overall outlook of the entire nation.
   
7. Education: Chinese tradition stresses on education from the extracurricular lessons in piano or violin when one is young, to extra night classes in high school, onto university and finally post-graduate education after twenty two or earlier. The massive nationwide university entrance exams written annually creates the greatest proportion of young talents ever imaginable that can gradually replace the core of the aging think tank in China as the twenty first century progresses. Whereas other countries may not have this luxury, scholarly contributions by Chinese authors in internationally renowned academic journals are already surging, foreshadowing the dominate role China will play in technological innovation in the near future.

As I said, the above list is by no means complete but at least these indicative factors which other "democratic countries" lack are how China will most likely to dwell in, persevere and flourish in the long run. These factors are also partly why China is able to amount to massive collection of US bonds and debts when even the US itself will be unable to shake off perhaps within this century.

That is exactly why the emerging China will be the most fearful and daunting topic in this very century!

speed_demon

Google's ever expanding presence in your digital life

Google's newly integrated service, Google Buzz, will once again simplifies how we communicate about within the Web 4.0. The Buzz smartly bypasses copyright infringement by outwitting similar services like Twitter, etc., with the exceptionally brilliant idea of integration with the ever expanding Gmail service. Recent addition onto the Gmail client including the daily task manager with the possibility of Google Calendar integration, Google Talk voice and recording, labels and etc, most of which simplifies our digital footprints with the all-in-one catch. However, as our digital life ever more being absorbed by this single entity, how can we be sure that our digital imprints are safeguard by the database at Google Inc.? Will Google be more reluctant to release our data when there is government pressure or sanction imposed? Will Google be more forthcoming about our accounts been hacked and privacy been stolen by known entities originating from a known country when the bulk of their finance depends on the consumer culture of that particular country? It is really hard to say. For now, Google is the David against the giant Goliath of the Chinese government. But, what if in the mere future, the market share is more favorable for Google to operate in China. Who can then we turn to to safeguard our privacy?

Google, like all other corporation, savors the bottom line. And, when it can be ballooned to unimaginable proportions by the increasing number of Chinese middle-class Internet users, Google will most likely not be as merciful as it is now. If that can happen in China it can happen anyway Google roams.

Me, myself, and my dreadful landlord

After enduring for almost 2 and half year, I'm finally fed up with my current landlord and I will move to a different place that cheaper and is free of landlord's interference. I should have done this earlier but I was anticipating the possibility of moving into the adjacent room that is quieter and warmer than my existing room. The place I live in is semi-basement, double tenant occupancy, shared kitchen and bathroom with another tenant, nearby the south entrance of the UVic, and the landlord family lives upstairs with shared entrance and shared laundry.

Although it may seem nice in the beginning with spacious open place, in the close vicinity to the university, and under the companionship of "friendly" tenants, but unbeknown to the naive tenant, the room is cold and extremely noisy due to single-layer window and the house being located right on the street of the busy Cedar Hill Cross Road. Now, if it is just noisy and cold, that would be alright, I can survive, but you would also have to content with the "friendly" landlord, who turns out not friendly at all, but a vicious bunch, especially the female one, with demands and acts of revenge especially when you are trying to exert your full tenant right. By full tenant right I meant by staying at a place which is warm, friendly and free of "trouble." The worst thing the landlord can do is complain that you are wasting his electricity when it is he who should have looked after potential tenant's wellbeing and have foretold or solved this chilly issue before the unit is being advertise for rent. Now, that would be alright if a heater is given to the tenant for use, but the landlord somberly complains once again when the heater is used on a regular basis. And, not to mention the phone which she initially said you may use in case of emergency, but when you started to use sparingly she cut the line off, yet secretly revived the line when you no longer use.

The worst thing which she uses as a revenge for "bad" tenant behavior is the preferential treatment of tenants which I despise the most. It would have been alright if she is honest and give equal treatment to all tenants, but she goes great length to deceive and lie especially when you are also in the house and she is about to give favor to the other "favorite" tenant. By "favor," I meant chocolates, candies, cereal, instant coffee, sugar, ice cream, soft drink, cookies, chips, and other stuff she has made, which are all "supposedly" can not be bought in China, bullshit! She is a great cook I admit, probably the only good virtue of hers. Even alright if she is honest and do what she does. She calls herself a follower of Buddhism but I really take pity on how Buddhism taught her to deceive and be a perverted woman she is now of no conscience whatsoever. It really saddens me to see how Buddhism have brought up her moral line as it is now twisted and degraded beyond recognition. And, I really take pity on her son and daughter for having to content with this kind of greedy mother of no sympathy and no leadership skill.

Moreover, what I don't understand is that I'm paying the monthly rent in "cash" which means they get $5,760 of tax-free income per year, $13,890 for the entirety of my stay, and yet they are still complaining. So, screw you, I'm moving to another place with a cheaper rent, warmer place, and with no interference from the landlord.

Her last name is Fung, and if you happen to stumble upon the post for unit 2053 on that street, do not bother responding. You will save a lot of trouble in the long run.

Happy Chinese New Year, everyone.

speed_demon

Winter Olympic without the Snow

I guess my prediction years ago is about to come true. An Olympic without the "white stuff" will truly make Vancouver 2010 a special one worth remembering for eons to come. Now, come to think of it, who really benefits in the end of this fiasco? I bet you those Olympic "contracts" were all awarded to "friends" and close relatives of the friends of the politicians. Of course these weren't be obvious at first, but after unraveling layers and layers of documents and connecting the dots probably thirty years from now from fed up taxpayers, this is what we will most likely find out in the end. Now, with their pockets full, hands shaken, meals eaten, and connections solidly established, the ultimate miserable victim of this prank will be you and me, the taxpayers, the hardworking families, and the impoverished who have to increasing worry about how to get the next meal and a waterproof roof to sleep in due to the ever rising unaffordable cost-of-living and rent. Ultimately, all those promises, provisions, and compromises the culprits ever made will be nothing when it compares to the number of years laymen will have to put off in order to completely payoff the Olympics.

This Olympic is a testament of forced evictions, police brutality, face saving, tax rising, tongue rolling, and residents losing event. Of course, we all want our neighbor south to know where exactly Canada is, and we all want Canada, especially Vancouver, to be recognized as a world-class city. But when it comes to being taken advantage of by your home-grown politicians, it really infuriates us to just standby and not do anything. Perhaps, we will be lucky enough and not be as debt laden as Montreal once was. Perhaps, we will not be so lucky as our economy is still recovering from the trough of a financial roller coaster not long ago.