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So after a flurry of informational postings from the U.S. Consulate for American's in China, we now resume our regular feature. Nowadays, when I talk to my friends and family in the U.S., they often tell me about the economic situation in the States. It looks like New York and the East Coast has been affected pretty badly, with people telling me that the environment there is just generally depressing. My friends and family on the West Coast (California) have mentioned the economic situation, but it doesn't yet appear as bad. However, when the full brunt of the layoffs begin, I will probably hear more. During this period, how one manages their finances, investments and savings is of critical importance. As we enter an age of Recession, money will be even more valuable than before and harder to come by (unless you're the National Treasury). However, confidence still seems high for some companies. Google dropped to as low as $260 some dollars and is now up to $300 in only a couple of weeks. A lot of people have also been asking me about the economic climate in China. To my experience and exposure so far, China seems to have been affected, but not as acutely and still cushioned. One of the things that China's banks did well, was to shun advice from Western financial advisors to re-package their mortgages and re-sell them as investments. The Western financial advisors for ages have been pushing China banks to engage in this sort of trading, and much to the credit of these Chinese banks, they resisted and the wisdom of their steadfast resistance is apparent. Therefore, China itself does not have the mortgage and investment product scandal that America has. In other areas, China's manufacturers are getting hard hit by the economic crisis. Factories down in Guangzhou are closing one after another, day by day. As China has massive amounts of money in USD, they have also had to offer financial assistance or watch as their assets crash. One of the largest and most modern looking office buildings in Shanghai recently completed construction and unfortunately is mostly empty because many companies are cutting back and no longer renting/buying space there. The China government itself is now directing its investments inwards, to expand and fortify their infrastructure, roads and public transportation. A very wise move, creating jobs and improving itself from within, so that when the world recovers, they will be prepared to tackle it even better. By doing so, it distances itself even farther from India, a once-close competitor. However, as wise as China's leaders are in how to manage their money, investments and domestic development, there are still many hurdles internally. Archaic and despotic government officials take this funding to build the cheapest (often using sub-standard building materials, think of the Sichuan shoddy schools) roads, metros and facilities possible, oftentimes resulting in worker and civilian deaths from collapsing subway tunnels under construction, to bridges falling out as you drive over it and more. Nothing is perfect and if the top isn't straight-up, neither will the bottom. The Bush Administration is a perfect example of corruption at the top trickling down to every inch. One thing is for certain. It is indeed an exciting age that we are living in, to witness the possible emergence of another economic world power, despite their stumbles. On a side note, one of my photos is now part of a San Diego guide.  And one more positive side note: "Two UC San Diego Scholars Chosen
to Serve on Obama Transition Team" Quote from the UCSD Campus Loop newsletter: "President-elect Barack Obama has tapped two UC San Diego scholars as leaders of his transition team to the White House. Peter Cowhey, dean of the UC San Diego Graduate School of International Relations and Pacific Studies, will serve as co-leader of the team preparing for the new administration's special representative for trade policy. Mario Molina, UC San Diego Nobel laureate and professor in the UCSD Department of Chemistry and Biochemistry, has been named as co-leader of the team assigned to develop plans for the nation's science and technology policy." I truly hope to see our country focus on some domestic development as well, especially in the areas of science and education.  Comments (1) |  Add as favourites (93) |  Quote this article on your site | Views: 208
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