創業者ブログ

The economic growth of the "Big Dragon"
(Dec.15,2006)

China is strengthening its presence in the world. Several decades ago, Japan achieved the miraculous economic growth and was once called even "Japan as number one." Japan was followed by the "Four little dragons," that is, South Korea, Taiwan, Hong Kong, and Singapore. These four countries facilitated industrialization and achieved the rapid developments. In the 90s, another economic development began in the "new little dragons," that is, Thai, Malaysia, and Indonesia. All of these economic development followed the common pattern: it was extremely dependent on exports in its early stages, and then, the domestic demands gradually expanded. Furthermore, in the case of the "dragons," they improved their technical capabilities by introducing foreign capital. They exported products with the use of their cheap labor and earned foreign currencies.

In the early 21st century, China - the "Big dragon" - started its economic development. Currently, China is sustaining more than 10% growth. There is no such a country in the world. U.S. repeatedly points out that Chinese government unfairly leaves the conversion rate of the yuan into the U.S. dollar too cheap. The yuan will be upvalued before long. China is boosting the trade surplus with the U.S. year by year. China has already outstripped Japan in its foreign currency holdings. The domestic markets of China are also expanding. As a result, middle-class consumers are rising. Chinese government will coordinate its policies toward fostering the domestic markets.

China seems to be enjoying smooth sailing under full sail. The only concern is the gap between the rich people in the coastal zone and the poor people in upcountry towns. It is the task of pressing urgency for Chinese government to relieve the poor people's feelings and fairly redistribute wealth. In addition, China should advance environmental measures as soon as possible. Also it is necessary for them to clean up the corruption of the bureaucracy. These are the difficult issues with which Japan, the "Four little dragons," and the "New little dragons" had grappled.

I feel a little anxious about the future of China. I will keep observation on it.

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