Europe And The US Are In A Precarious &Nbsp; Foreign Media Are Keen To See Whether China Can Save The World.

British Daily Mail website August 7th question: will the last communist country in the world save the western capitalism now?

(Jonathan Fenby, director of China Research Center, UK's "reliable source" business consulting company)

The US credit rating has been downgraded, which is not only a critical moment for the United States, but also for the whole world.

Economy and politics are interrelated under globalization.

This characteristic means that for a country that has been used to giving orders since the end of the cold war in 1945 and 20 years ago, the disaster it has caused us can not escape.

Over the past few weeks, Americans have been talking about political leaders.

All of us now put sunlight on China's second largest economy in the world.

If the global system after the cold war controlled by the United States has been in a state of lingering depression, will the economic superpower emerge?

Or will the last communist power rule allow the west to eat its bitter fruit?

This weekend, Beijing is busy expressing its dissatisfaction with the superpower on the other side of the Pacific.

In the past 30 years, most of the world's most populous countries have been keeping a low profile in the process of their rise.

In the process of becoming the largest manufacturing country in the world, it does not want to disturb the external powerful forces.

Today, it has taken off its modest coat.

After its global economic development in 2008, it has been able to achieve its own strong economy.

It is not surprising that its main target has always been the US "debt addiction" and "short-sighted" political wrangling.

The target also includes the quantitative easing policy implemented by the Federal Reserve.

This weekend, Beijing has taken another step.

Through its mouthpiece, Xinhua News Agency appealed to the international community to supervise the issuance of the US dollar.

Xinhua said the introduction of a new, stable and secure global reserve currency is an option to avoid disaster.

But this is a long-term problem, which is equivalent to raising building standards when the house is cracked.

China has big moves in the short term, such as using foreign reserves to buy Italy or Spanish bonds in large quantities.

Although it is very beautiful on the surface, China itself is in deep contradiction.

It wants America to be more responsible, but if that means a decline in exports to the US, it will suffer.

China hopes to establish a new international financial system, but also insists on controlling its currency and lowering its currency value to help sell products overseas.

From this point of view, it will proceed cautiously in the next few weeks.

But the hardships of the United States will surely enhance China's reputation.

The world financial market is now in a mess, and everything is uncertain, but one thing is for sure.

The Seattle times: Sino US interdependence is the most risky.

[us Seattle times website August 6th issue] us China relations are the most dangerous interdependence on the planet (author Jon Tarleton)

Although the agreement on the debt ceiling has been reached, the credibility of the United States has been weakened by a rating agency.

That agency is Dagong international credit rating Ltd.

The US sovereign debt rating dropped from A+ to A, and the rating outlook was also turned negative.

Meanwhile, Zhou Xiaochuan, governor of the people's Bank of China, issued a statement calling for Washington to take effective measures to improve people's confidence in US Treasuries.

This created the situation of "China and the United States", that is, the huge spending of American consumers, the great war in the United States and the sharp reduction of taxes, which were funded by China.

"China and the United States" are the most dangerous interdependence on the planet.

The great recession and the temporary recovery of the US economy have not solved the problem of trade and debt imbalance between the two countries.

The problem is not just the United States.

Besides, China relies on massive consumption in the United States to maintain high employment rate and ensure social stability.

This danger is developing in two ways.

Today, the US economy may fall into recession again, and the eurozone is also in trouble.

In addition, China's economy has slowed down, and the situation may be even worse.

This will bring down the world economy, because China has been leading the world to achieve economic recovery.

China's real estate bubble and inflation are most worrying.

It is also worrying that consumer spending is not strong enough.

Critics believe that the scale of China's infrastructure spending is too large and too fast. The problems arising from shortcuts to "ghost cities" and the construction of high-speed railways are microcosms.

China is actively expanding its industrial base and has turned a deaf ear to the problem of overcapacity demand.

All these problems are more serious because of the central planning economy that requires all costs to achieve economic growth.

The bigger question now facing China is whether its national capitalist model is sustainable.

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The Daily Telegraph of Britain:

According to the August 5th issue of the Daily Telegraph website, China can not and will not save the world. (Jonathan, the director of China Research Center, British reliable source business consulting company)

While the western world is contemplating a new financial disaster, the world's second largest economies seem to be anxious about the market's anxiety and even use their wealth to save richer countries.

It seems contradictory that a hundred million people still have relatively poor countries to rescue the western world.

But the rise of China has stirred speculation that it is ready to become a responsible stakeholder and play its full role in guiding the world economy towards security in the words of Robert Zoelick, the world bank president.

The frustrating fact is that China has fallen into a series of difficulties, limiting its ability or willingness to play a global role in line with its economic strength.

China has its own problems to solve.

From 2008 to 2009, it implemented a 4 trillion yuan investment infrastructure plan to extricate itself from the economic difficulties; officials in Beijing had two major concerns.

First, the consequences of this plan, coupled with the pressure of rising food supply and wage, will lead to reckless inflation.

Two, as the west enters the two digit recession, the demand for Chinese exports will be reduced.

Inflation is indeed rising from an average of 2% over the past 10 years to 6% this summer.

It is still the main goal of the government to reduce inflation to 4% and to quell popular indignation in this process.

This means strict control of the money supply. Beijing must also reduce the cost of raw material imports to meet industrial development.

The quantitative easing policy implemented by the US Federal Reserve has undermined these two goals, because the result of this policy is to increase the global money supply, some of which flow into commodity investment.

The opposite approach will also cause trouble. The tightening policy proposed by the British Chancellor of the exchequer George Osborne will pose a threat to China's export demand reduction.

Without exports, the Communist Party will not be able to maintain growth, which is the main proposition of its rule.

China is in a dilemma.

For economic reasons and maintaining social stability, it should avoid inflation.

But when the import revenue is determined by the commodity price, it needs the export market to remain active.

There is also a deeper contradiction.

After all, China's rulers hope to carry out "scientific socialism" in a one party system and continue to build a well-off society.

This means pforming an economy that is over dependent on imports and infrastructure and real estate investment into an economy that plays a more important role for consumers.

However, China's success conceals its failure to formulate coherent political or economic global policies. It maintains consistency only on some basic core interests, such as maintaining an open trading system, winning commodity purchase channels and continuously letting the renminbi undervalued.

The current crisis may highlight the limitations of such a narrow attitude and Chinese leaders will almost certainly choose to take a dissatisfied stance to look at the trouble rather than rush forward and try to solve the problem.

The Wall Street Journal: China's rescue capability is very limited.

The Wall Street journal website August 5th article: China's rescue capability is considered limited.

There is growing concern that the global economy may once again be in trouble. Meanwhile, doubts about China's ability to pull it out of the way have increased uncertainty.

The global stock market crash this week shows that people are worried about the global economic downturn and the "two dip" of the US economy as the euro zone struggles to contain the imminent sovereign debt crisis.

Last time, after the collapse of Lehman Brothers, China launched a huge expenditure plan of 4 trillion yuan, which not only maintained the sustained growth of its economy, but also helped stabilize the world economy at a critical moment.

As part of a package of stimulus packages, China's railways, bridges and high-rise buildings have promoted demand for raw materials imported from rich countries such as Australia and Brazil.

Chinese consumers are still buying goods such as cars and computers, helping multinational companies maintain their performance at a time of shrinking demand in developed markets.

China's share of global GDP rose from 5.5% in 2006 to 9.3% last year.

But China, now the world's second largest economy, is struggling with the price of the massive rescue plan launched last time: inflation, real estate bubble and debt increase.

Economists say these factors will limit the ability of the government to revive the economy once again.

Brian Jackson, an economist with Royal Bank of Canada in Hongkong, said: "a few years ago, they had been forced to launch a large-scale package of economic stimulus plans. Therefore, it will be more difficult to re apply the old technology."

China has just begun to try to shift the economy to domestic demand, which limits China's ability to help.

Household expenditure is still increasing and wages are rising. But since stimulating expenditure, the proportion of investment in China's GDP has not declined since 2008, but has increased.

If demand falls from the US and Europe, Beijing will not be able to turn to help from its own families to boost the economy.