China's Economy to Dominate 2008

A strong and resilient economy is quickly pushing China to the forefront of the global financial stage and will make the Asian nation a force to be reckoned with in 2008. According to The Heritage Foundation, a conservative think tank based in Washington, D.C., China has surpassed the United States in manufacturing output and is the global leader in the production of steel, copper, aluminum, cement, and coal. Cahal Milmo, writing for The Independent in Great Britain, said January 1, "China is set to make 2008 the year it asserts its status as a global colossus by flexing frightening economic muscle on international markets...."

John J. Tkacik, Jr., the Senior Research Fellow in China, Taiwan, and Mongolia Policy in the Asian Studies Center at The Heritage Foundation, wrote December 28, 2007 that "...Washington can no longer condescend to China as a 'developing' nation in need of U.S. tax dollars for programs relating to energy, environment, and the like. China has ample money and resources to pay for these programs by itself."

According to data cited by The Independent, Chinese banks, which are controlled by the government in Beijing, are set to start spending foreign currency reserves in British financial markets, sparking worries about the possible takeover of British ventures by the Chinese government. The trade gap between China and the rest of the world, which has been the subject of considerable debate in the United States Congress, will grow even wider this year according to figures provided by The Independent and The Economic Times of India.

A report by The Economic Times of India says that the Chinese economy will experience double digit growth in 2008, the sixth consecutive year in which that has happened. And while inflation in China is considered to be high, The Economic Times says, China's gross domestic product (GDP) is likely to grow nearly 11 percent during the next twelve months. Strong economic performance can lead to significant inflation of prices, and several analysts have reported that inflation in China is near a decade high.

Statistics provided by Forbes.com reveal that China's net fiscal revenue is expected to grow by 6 percent this year, and overall investment will likely rise by more than 20 percent. Forbes also says that total foreign trade is expected to increase by 20 percent.

China's strong economic performance over the past several years has enabled it to invest both domestically and internationally, and with a growing military capability, the country could soon join the ranks of the world's elite powers.

Sources: The Heritage Foundation, Web Memo Number 1762, The Independent (UK) web site, The Economic Times of India web site, Forbes.com web site