China's economic policies, good or bad?

[sunfarstar]

China continued to buy a lot of U.S. bonds, such as economic policy is beneficial or harmful to China's economy. Please tell us. In particular, I would like to hear the views of the United States comrades.:thumbup1:

[What Would Durruti Do?]

In the short term I would say it's good because it's helping the U.S. stabilize their economy which China's economy relies on. So China really has no choice but to buy bonds to save themselves as well as the U.S.

However, many believe the American economy is past saving at this point. If and when hyper-inflation kicks in and the American dollar collapses, it'll hurt China a lot as well.

[gorillafuck]

China is a capitalist country, therefore it's economic policies suck.

[Lynx]

They are investing in the future of the US economy. Good or bad? Hopefully they are not putting all their nest eggs into the US basket. I don't know if diversification strategy works on the level of the global financial system.

[FreeFocus]

China is a capitalist country, therefore it's economic policies suck.

QFT. What they do strategically in a capitalist framework will not earn a value judgment from me, nor is it really relevant unless taken in the context of how it could potentially be used by the left and oppressed groups. Whatever they do is merely a fact of reality, but as capitalists, I consider their policies bad. And overall, since you asked broadly about China's economic policy, China's imperialist infiltration of Africa is growing more troubling by the day.

[Comrade Kaile]

im from australia, so my legitimacy is not as high as citizens of the US

however, look at the history of china's economy, last year they produced a gdp of $us4.33 trillion, have been steadily increasing their position in the world economic hierarchy for some time, culminating now, as theyre sitting pretty on number 2 largest economy in the world.

as an australian id have to say as a whole chinese econonomic policies, for china, are good, for us, not so much. as a leftist id say china is bad since theyre still running on a primarily capitalist system, so id agree with hammer and pickle, its economic policies suck

[fabilius]

China is moving away from the dollar... The policy of buying dollarbonds is unpopular in China and increasingly te government sees it as a risk to base everything on the dollar.

[x359594]

...many believe the American economy is past saving at this point. If and when hyper-inflation kicks in and the American dollar collapses, it'll hurt China a lot as well.

The PRC's economic planners are aware of that possibility. Last month the first summit of heads of state of the BRIC countries — Brazil, Russia, India and China — ended with a declaration calling for a “multipolar world order”, diplomatic code for a rejection of America’s position as the sole global superpower.

While the PRC holds about 2 trillion $USD in bonds its economic planners have embarked on a graduated divestiture of USDs by using the currency to buy offshore interests in African real estate and Latin American enterprises, so the PRC's timing for USD conversion is crucial.

[cyu]

China continued to buy a lot of U.S. bonds, such as economic policy is beneficial or harmful to China's economy.

If any country A is already over-invested in another country B, that is not a good thing when they try to invest more in B. All that means is that if B fails, it will take A down with it, which is not good for A.

Diversification is a good thing. However I wouldn't recommend any country merely sell their dollars in order to buy gold or the fiat money of other countries.

Excerpt from http://knol.google.com/k/j-y/gold-standard/gcybcajus7dp/2

...no country should set a goal of trying to collect either foreign currency or gold in their reserves. Instead, they should be building up their productive ability - y'know, like what Adam Smith said was the real Wealth of Nations.