What I Think About China Influence For Businesses And Consumers In The World; Just Rehashing What We Already Know, Really!

As China’s economy and military might grow ever stronger, what I think about China Influence for businesses and consumers in the world?  According to Wikipedia’s “Demographics of China” article, based on 2012 census China’s population is at 1,344,130,000.  I think it’s somewhat bigger now since we’re in 2013.  Nonetheless, 2012 census is recent enough, and so we have the idea how big the population there is in China.  With such a big population, China has a humongous human capital potential.  Nonetheless, if China’s economy has yet to grow to where it’s today already, I don’t think China’s humongous human capital potential can be a positive force just yet for China.  We know this isn’t the case!  In fact, we know that China’s economy is continuing to grow at a really fast pace while the world’s economy is still on life support.  No wonder that we see China Influence is growing everywhere in the world.

According to RT’s “China leaves behind the US as world’s leading trade partner” article, since 2011 China is topping the United States in term of who has more trading partners in the world.  According to RT’s article I just mentioned, in 2011, China traded with 124 countries, but the United States could only trade with 76.  Before 2011, it was the United States that led the trading pacts, but China overtook the United States since 2011.  This fact is still true today I suppose since there isn’t any newer facts/news that corroborate otherwise.  Obviously, who has more trade partners will have more saying in world trade matters.  In our recent time, I guess China would be the one who can dictate the direction of the world in term of trading.

As China Influence grows in trading, China can dictate more trading terms.  For an example, if I’m China, I would dictate how I would like to pay for my import and get payment for my export.  It seems that China is already doing this!  If I’m not wrong, I’ve been hearing that China has signed some sorts of trading agreements with certain trade partners to have trades to be made in Yuan (Chinese currency) and not in Dollar (U.S.A. currency).  I think China is doing this to protect herself from having to hold too much dollars.  Also, China is being pressured by United States to have the Yuan appreciates, therefore China is hedging to have more Yuan(s) on hand as the Yuan is going to appreciate in value anyway.  Holding stronger Yuan(s) in China’s whatever accounts will allow China to become wealthier and have stronger ability to purchase whatever abroad and fund whatever locally better than ever before.  With the one example above, how China dictate trades to be made in Yuan, we can see China Influence in trading is very powerful, because China can dictate trading terms in many many more ways and on China’s own terms.

As China is trying to grow even more powerful in all aspects, China is also keen on having their population to spend more.  This way, China too has the influence in importing.  I think it’s natural for Chinese to import more since they’re getting wealthier by the day; therefore, whatever China does to stimulate this sort of behavior, China will see Chinese consumers open up their wallets easier.  Nonetheless, Chinese are fanatic savers, therefore it’s in their DNA to spend wisely, and so we might not see Chinese go crazy over spending.  Still, I think as time progresses and as Chinese grow wealthier by the day, their population has to import more and more and spend more and more.  With a billion plus of people, China will dominate world import even though only a quarter of Chinese population go on spending spree the Chinese fanatic saving way.

As China dominate world import, she can influence the world import greatly.  She can dictate how the world business would be ran.  Fictitiously, for an example, she could make it clear that Chinese people love leather, therefore whatever leather businesses in the world would be greatly benefited in term of exporting.  With importing power/influence, China can wield importing trade terms in her favor.

Combining export and import influences, China is a force to be reckoned with in term of world trade matters.  We know that with great power comes great responsibility, if you don’t mind I borrow this phrase from Spider-Man movie.  Basically, I’m just trying to hint that China can use her China Influence just like how United States have had been doing for awhile now.  China is different though!  Albeit, some world trade interests might converge, China has different culture(s) and interests.  China is on the rise, therefore she wants to be going up and up and just a lot more of going up.  Anything else would be against her interests.  If I’m China, I would do the same!  This is why we’re seeing China is spending more for her military.  This isn’t a surprise but logical, because she needs to build up her military foundation, innovation, structure, strategy, and whatever military to protect her economic might.  Will this ultimately collide with United States’ overall economic/military grand strategy?  The answer is obvious to whoever is willing to take a closer look, right?

People might argue that China does not have friends, because people are using the traditional views that they have had of China.  I think these people aren’t keeping up with time.  Let be logical, whoever has the money has the influence and friends.  This is fact for most of the time in the real world!!!  It cannot be denied, because we’re not watching unfolding events in a movie or a fairy tale!  I think China will make more friends than ever before even though there are those South China Sea islands + land + water + resources disputes and East China Sea dispute.  I don’t pretend that I follow enough about these China Sea’s disputes to know enough details on them, and so I won’t talk about China Sea’s issues.  Instead, I just want to emphasize that China isn’t so aggressive in China Sea to the point that she is starting a war.  Instead, I think China will use her so called China Influence to influence the outcomes of China Sea’s disputes.  I think China will get what she wants in the end, because either you start a war with China or be succumbed under China Influence.  I know in this day and age, starting a traditional war isn’t something that we can just underestimate, and China isn’t military weak!  You can argue about this, but the truth is that who is in their right mind to start a war with China and/or Russia in a nuclear age?  No need to say more, because China is nuclear capable!!!

In summary, I think as we’re moving ahead, China Influence will grow ever stronger, and she can dictate world matters in her own terms a lot more.  It’s all depending on how aggressive she will be!  Furthermore, we know nobody is crazy enough to go to war against China, unless craziness will actually happen!!!  China Influence can dictate how businesses and consumers around the world behave, because it’s obvious that with money, power, and influence she can persuade world trade matters to favor her trade terms.  Yes, I don’t talk much about China’s internal issues such as pollution and political dissents, and I’m doing this on purpose.  How come?  We all know that all countries have some sorts of internal issues, but not that many internal issues can be a death knell to a country’s health.  Furthermore, it’s all depending on how a country progresses in economics, military, policy, and world influence that allows such a country to weather the storms, whether that be internal or external issues.  China is looking strong in economics, military, policy, and world influence, therefore I don’t see how China cannot weather both internal and external issues.  Of course, I cannot be absolutely right, because I don’t know much.  Nonetheless, I think my intuition tells me that China is going to have a hell lot of fun in influencing the world’s businesses and consumers for a long time to come.

Sources:

UK Mobile Network giffgaff Wants To Be Run By You; Competing For Bringing Down Costs So Mobile Users Can Save Money

GiffGaff

Image by AJC1 via Flickr

A small UK mobile network which is known as giffgaff sounds like heaven!  I have just only heard of it, and so I can’t really make head or tail of it.  Nonetheless, so far I understand that this is UK service only (for now), but if I’m wrong, please do correct me.  The mobile network giffgaff claims is that it hands over most mobile responsibilities and powers to the mobile users themselves.  As mobile users invite more users, they get more goodies from giffgaff such as free minutes, cash, and so on (correct me if I’m wrong on this).  No long term contract, and as giffgaff saves costs of not having to spend on hiring large staffs and maintaining several core business infrastructures, giffgaff can pass down the savings to giffgaff users in goodies such as free minutes, cash, and so on.

Before users can start using giffgaff, they need to have their smartphones unlocked and order a free SIM card from giffgaff.  On giffgaff official website, it shows the phone plans in £10 to £20 range.  Just take a look at its cheapest plan (£10) and get a rough idea why giffgaff can look very enticing to some mobile users.  For paying just £10 a month with giffgaff, mobile users get 250 UK minutes, unlimited UK texts, unlimited Internet, and free to giffgaff (I think this is about calling between giffgaff users is free).  After the inclusive minutes of £10 plan have been used up, extra minutes will cost somewhere 10 pences per minute.  Texting and surfing the Internet with giffgaff are truly unlimited, and so there will be no tariff on these two services for users who use £10 plan.  Voicemail per call will cost 8 pences after the inclusive minutes in the £10 plan have been used up.

In my opinion, giffgaff is still a company, therefore its main focus is still all about making profits.  Nonetheless, giffgaff is rather unique in a sense that it’s competing against other big mobile players in the arena of bringing down the costs for mobile users.  One big drawback I can see with giffgaff is that it’s somewhat depending on the members of giffgaff community to provide customer supports.  Customer supports provide by other members of giffgaff can sometimes be varied in helpful to non-helpful.  The standard for providing ultra good customer support isn’t existed.  This might prevent some people from having good customer/user experience with giffgaff.

If mobile network giffgaff continues to grow, I think some entrepreneurs in the United States might try to replicate the formula.  Bringing down the mobile monthly payment and costs are definitely two of the many priorities that mobile users in the United States have in mind.  With business model of giffgaff, I think mobile users in the United States might love it.  In fact, you never know that giffgaff model may thrive even healthier than how it’s in UK.  What do you think?