China’s Greatest Export…

The new promise land...

What does one do with 1.3 billion people when you have that many with not enough resources to go around?  Well this is the position China is finding itself in these days, as their population clearly out numbers their available natural resources for becoming a self supporting country.  As here both its population and resources fail to match its gross domestic product.

So given this, what is the Red Giant to do?  Well it turns out the answer is simple; you make your largest export not consumer electronics, but people.  Thats right, China’s largest export isn’t the stock on the shelves of the Wall-Mart stores, but the potential folks who stock them.  So to deal with this, the Chinese are setting up shop in other parts of the world. The biggest beneficiary of this migration if you will is Africa.  As it’s here on the Dark Continent where China has been rapidly deploying its presence over the last decade, to countries such as Nigeria, Angola, and many more. During this period, more than 750,000 Chinese have relocated to Africa and at this pace. Some contend this number could easily increase to the hundreds of millions, which would go a long way to hammer a dent into China’s natural resource challenges by taking advantage of Africa’s abundant resources.

Here logistic services via both air and sea routes are building between the two nations as massive deals are struck for commodities, trade, labor and not to mention, yes military cooperation. If one looks, they will find Chinese private schools, and cultural centers popping up in what once was considered out of the way places such as Rwanda, and Nairobi.

Africa on the other hand in this barter gets a willing trade partner that brings with it not only social assistance, however weaponry for its military factions. Additionally, Africa also reaps the “supposed” benefit of jobs and infrastructure building to meet the needs of their new visitors.  Yet is Africa really just getting the short end of the stick, as what is the true value of importing cheap Chinese toys and goods, while they export away their valuable commodities like oil and timber?

As many estimate that upwards of 70 percent of all African timber ends up in Chinese ports, which one can easily see as being part of a massive deforestation process taking place.  Even worse is there are assertions that Chinese mining operations in Africa are staffing their workforces with African laborers who earn less than one Yuan per day, which converts to about 14 cents.  Then there are the weapons which are sent many times as payment to Africa which do no more than simply help fuel the continents many civil wars. As hey if they are spending their time fighting each other, no one is watching what’s leaving the ports are they.

Least one thinks this exodus is limited only to Africa, China has also been reaching out to south of the boarder in Latin America as well.  As they have now bypassed the United States as Brazil’s No. 1 trading partner, and now in second place to the United States in Argentina, Costa Rica, Chile, Peru and Venezuela.

As With a building reach, and a young population ringing the bell at well over a billion people, it’s clear the global financial focus will be on China as its poised to become a true economic superpower…

About Joseph Campbell

As a strong believer in the fact that "people work for people", it has been a life driver to better to understand the complexities of the various aspects which drive efficiency within this axiom, especially the concepts of leadership. Supporting this, I have been fortunate enough to having experienced this as leader on a global basis over the last decade and half. During this time it has been clear there are three core drivers being Life, Leadership and Economics.
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