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Tracy - to answer your question - an editorial

Posted by Sheri on 2/21/2006, 16:29:45, in reply to "I think I'm having trouble seeing the connection"
I scanned it in. It will be on the http://www.canadiangeographic.com website shortly. It's still the last magazine that's online.

This may help answer your question, granted it's from a Cdn viewpt but it gives you the idea.

If you'd like a copy email me.

But the overview starts "A Freight train coming"...it's a discussion about all the goods and services we receive from China. Yet all China wants from us are raw materials. Not even refined ones. Even cars are $10,000 cheaper and they hope to sell 100,000 in Cda next year. China is now Canada's 2nd largest trading partner next to the USA. Canada's economic prosperity depends on exports but China wants raw goods, crude oil, logs, ore not steel. "All importers want to process their own goods, but China has large pools of low paid workers and massive purchasing power for commodities. It's trading partners are rarely willing to risk the loss of big sales of raw resources by insisting of some degree of processing".

The author feels the most "profound" difference between China and the rest of the world is - China deals with 10 to 100 year time frames. Canadian politicians cannot see beyond the 4 year electoral horizon. Therefore it's tough to negotiate with a trading partner that will just wait out your gov't's term.

"The China trade is reshaping the economic geography of Canada" - I expect it's doing the same in the USA.

Who needs a military, when they can control your economy??

Sheri


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