Economy of China

Essay by payne140University, Bachelor'sA+, November 2004

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Could you imagine being a leader of the largest importing industry? One day your leading the world in imported goods sold and the next second your not. The country of China is ballooning U.S. trade and is becoming a major source of global deflationary. In the past year China passed it's competitor, Japan in large imports sold to Canada. "The world needs to wake up and smell the coffee that China's providing," says, Washington's journalist Mandy Thorpe (New York). She writes that China is becoming an import-trading heavyweight. China has become an economic titan. It is a country so big, so cheap and industrializing so fast it has single-handedly changed the structure of world trade, brought deflation to the door of North America and made a huge swathe of the world's manufacturing sector obsolete.

In April, a company by the name of Noranda Inc. shut down a 2-year million-dollar magnesium plant in the city of Danville.

China took a 630 million dollar title-wave against earning and eliminating 380 jobs. The plant fairly new, had only been open for a matter of 2 years. "We started construction in 1998," said Dale Coffin, a spokesman for Noranda. "At the time, China was not even on the radar screen with magnesium and now they produce about 50% of the world's demand. They just drove the price right down to a level where we couldn't operate." "When Noranda considered building the plant in the mid-1990s, magnesium used to make metal alloys. It traded for about US$1.50 a pound. When the company decided to pull the plug in January, it was sold at US60¢ a pound. China, which now has about 70 magnesium producers, and can produce it for US30¢ to US40¢ a pound" (New York).

King and queen of job's and maker of...