China Shakes the World: A Titan's Rise and Troubled Future

China Shakes the World: A Titan's Rise and Troubled Future -- and the Challenge for America
- It won the Financial Times 2006 Business Book of the Year for a reason.

- James Kynge (author) Financial Times bureau chief in Beijing, discusses not only the challenges faced by America in this excellent new book, but those faced by China itself. One of these challenges is the enormous demographic and economic growth that China has experienced in the last 20 years.
- Today there are 40 cities with populations of over a million and another 53 with populations between 500,000 and a million.
- The city of Chongking is growing by about 300,000 a year.
- In 2005, 400 million people were urban and by 2050 another 600 to 700 million will be urbanized. The accompanying challenge is sustaining the 10% annual economic rate to support this population surge

- China's growing size and influence will be one of the greatest challenges faced by the US and the rest of the world in the new century. In what Kynge calls the "compression of developmental time," Chinese workers are using the latest high-tech manufacturing technology and the most modern infrastructure, yet the average industial wage is only about $.50 an hour. Neither the West nor other countries can compete with this combination. How long this can be sustained is an open question. Kynge points out that they have an unbeatable advantage at the moment but that it cannot last.

- China a major and growing importer of natural resources and driving up global commodity prices. With their growing appetite for raw materials such as lumber, many of the world's rainforests in Indonesia, Myanmar, Central Africa, and Brazil are being logged - illegaly - to be sold in China. An area of rainforest about the size of Belgium disappears every year. Kynge's anecdote about missing manhole covers in surrounding countries illustrates the demand for steel. And no one should be surprised that the recent increase in global oil prices is a result of Chinese demand.