Chindia? More like Chimerica.
January 15th, 2009
Submitted By: Mark Polydoris
Since reading The Post-American World, I’ve become something of a Fareed Zakaria nut. I’ve spent some time reading his articles in Newsweek and watching him on CNN. Between the financial crisis, the election of Barack Obama, and the attacks in Mumbai, I keep asking myself: What would Fareed do? (I’ll have WWFD shirts available by our next GSBA meeting).
Zakaria’s latest article in Newsweek discusses the bailout and how China and US relations are more important than ever. According to Zakaria, it is virtually certain that China will be buying up a lot of US public debt, almost 10 percent of it. China wants to keep the US economy alive so we keep buying their stuff (apparently from the dollar store where Dr. Carr shops), but now it has the option of jump-starting it’s own economy since its citizens are able to spend large amounts of money. Either way, as the article states, China has options, and America doesn’t.
Talk about living in a post-American world! The article’s description of “Chimerica” paints a vivid picture where the fate of America is locked in with that of China. Are we already living in a post-American world when China can afford to finance both its economy and ours? Is there really a “Chimerica” if China has the option to simply finance itself? Can China achieve economic independence without relying on American consumption?
Entry Filed under: Pre-Departure, Beijing, China, India, New Delhi, Pre-Departure
3 Comments Add your own
1. Chris Carr | January 15th, 2009 at 10:29 am
Good post. See/read the following related Business Week article:
American Recession, Chinese Depression? Parallels to 1929
The comment thread is particularly interesting - example after example of people seeing or believing only what they want to believe or see.
2. Jimmy Spann | January 15th, 2009 at 4:08 pm
Initially it seems like a good idea for China to help out America’s economic status. By keeping America’s economy alive, it keeps the market for the products that are built in China alive. This in turn keeps jobs alive in China. However, what will happen if our Market isn’t enough, and the market gets pushed over to China? Will we have American companies producing and selling the majority of its products in China? This seems like a plausible outcome, but would be very bad for America’s economy. We would be on the outside looking in. China would have all the power and will be able to make all the decisions.
We also have to remember that China will be looking out for their best fortune first. If they can find a way to save themselves without saving us (America), I would not be surprised to see America left out to dry.
I do think that in the long run it would be better if China helps America out. It would only improve the relationship. Also, according to history, the economy will turn around. It may take a very long time, but it will. And when it does America will start to regain its global power.
3. Bo | December 2nd, 2009 at 6:44 pm
There are still people harping on the concept “Chindia”? Chindia was a term coined by Jairam Ramesh, and Indian “thinker” dude, years ago. The fact is that today, India is far far, and far behind China. Chindia is as ridiculous a concept as Gerbania (Germany + Albania). I suspect that those in India who still insist on Chindia are simply reluctant to give up on basking in China’s reflected glory. Sad, but it’s time for India to move on.
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