how did china build its infrastructure ?

[WAR-rior]

GUYZ....

I shud thank all of u who contributed in da discussion.

It was indeed a nice factual based discussion.

Now i can use ur facts for discussing this issue with someone else.

I just want to say to all da mambers in this forum that we are here for information.Thats what is the reason for such forums to exist.

There is no winner or loser in a discussion. Its just increment of knowledge.

If we stick to the same intent and discussion style of between me and my chinese counterparts......then this forum will be a real productive one !

Thanks !

 

[Veeru]

Also this is just not true. There's a lot more factors that influence where people invest. You have to keep in mind most of the money isn't going into investment in banks, there are loads of ways to invest and people are mainly attracted to profits and growth, both of which China has in spades.

and it's true while India has accelerated its growth to 8-9% this is the first year that it's done so, and while China has maintained this rate of growth for the past 30 years. If you think about investor confidence, think who they are going to be more confident about.


(also can someone bring up the numbers for FDI as a comparison?)

First of all this thread is about china.

Its not the first year to touch 8-9% of GDP growth rate, plz update ur facts.


India's GDP growth rate:

India logs 8.2% GDP growth rate in 2003-04


India logs 8.2% GDP growth rate in 2003-04

India's GDP grew 9% in 2005-06

India's GDP grew 9% in 2005-06

India's GDP grew by 9.4% in 2006-07

India's GDP grew by 9.4% in 2006-07

India's FY 2007 GDP Growth 9.4%

India's FY 2007 GDP Growth 9.4%

India's GDP clocked 9% in 2008

India's GDP clocked 9% in 2008

 

[Speeder 2]

^^ Still about growth rates?



Look at Angola: average annual growth 15% of the last seveal years !!

Now what's India's midget growth rate again in light of our Super Star Angola?

Growth rates alone mean nothing, get that into the skull.

It's the quality of the growth that matters.

Now, Angola's Inflation is 14% per 2009, #7 highest in the world;

Thus its 15% growth rate was almost meaningless, except being helpful for some artificial GDP number.


India's growth rate have been about more than 8% in the last 3 years.

Yet India's inflation was well above 10% per 2009, and now! One of the highest in the world.

Along with "heavyweights" such as Angola, Afganistan and Zimbabuwe, India ranks within top 25 Inflation Champions out of 224 countries in 2009!

In comparison, China's inflation has been very tame (rising a bit recently though) in relation to its growth - proven to be High Quality Growth , the secret of sustained double-digits growth over the decades.

M. Singh as an economist has played around numbers to chunk out some top line growth figures by bragging 8.5% growth ( and hides that underlying "inflation rate") .

Only illiterates are jumping up and down, celebrating.

Unfortunately, Singh can't cheat all. That also explains India's low FDI number in light of China's - yeah, foreign investors are giving Singh the finger.

To put it simple: quality of the growth (taken into account the underlying inflations) is what really matters.

 

[dataminer123]

hmm..the point of mauritus and singapore seem convincing.

but again i am not talking bout Forex !

I am talking bout foreign companies building its base in india. almost every american and european company is coming to india. they are setting up manufacturing plants here. there have been land access problems here coz of no control of govt on land but ultimately interstate rivalry somehow let these factories take base.

now my argument was, india is building dedicated corridors, ports, and along these corridors will be factories set.

If u see next 10 yr plan has more than US$ 1 tr to be invested and the planning commision has come out with the whole structured plan for infrstructure development in next two 5 yr plans ie. till 2020. u must have heard, 2020 is india's target to be fit with all infrastructure so that the fruits start to pop hence.

indian banking and finance sector is very powerful, infact more than chinese. and investment in finance sector is also high.

so dont u see, india's gameplan is completely out of phase as that of chinese.

also mauritus has become a gateway for many other country ppl. do u thing 68% of investment is only by mauritian ppl ?

just like hong-kong is for u !

but i want to know, why is only manufacturing sector or industrialization, ie. factories considered the only formula for development ?

dont u think indians can rock even more in services sector.

INTERNATIONAL SERVICE SECTOR is worth 1.5 - 2 trillion.

india currently has only 50+ bn market.

with growth and rising percapita income, the quality of services for locals and abroad will onlyget better.

owing to indian expertise in service sector and experience might give undue advantage to india in this field......JUST LIKE CHINA CAPTURED 1 SECTOR, cant INDIA CAPTURE some other which has VERY HIGH POTENTIAL.

Thanks !

We are still talking about infrastructure, right?

I am not arguing whether India can attract foreign investment or be successful in service or even manufacturing sectors.

My point is that even foreign investment is pouring into India and foreign companies are building their bases left and right there, it will not necessarily directly invest or improve India's infrastructure. From China's experience, FDI only contributed 2% of it total infrastructure investment, and infrastructure improvement is the cause not the result of FDI and economy growth. Unless India can do it reversely.

 

[Martian2]

I had planned on making a few more posts on China's offshore infrastructure and future plans, but we kept getting sidetracked onto tangential topics. Anyway, instead of making my final ten posts on China's infrastructure, I will leave you with one.

"Due to the longstanding U.S. trade embargo against Cuba, the embargo limits the amount of U.S. technology that can be used" by Cuba. To unlock her offshore oil wealth, Cuba had to wait until China's equipment-manufacturing industry was sufficiently advanced to provide the complex technology. The time has come.

Cuba to Start Offshore Oil Exploration in Early 2011 | Offshore Energy Today

"Cuba to Start Offshore Oil Exploration in Early 2011
Posted on Aug 3rd, 2010

A Chinese-built drilling rig is expected to arrive in Cuban waters in early 2011; likely opening the way for full-scale exploration of the island’s untapped offshore fields.

Companies with contracts to search for oil and gas in Cuba’s portion of the Gulf of Mexico have already begun preparations to drill once the Scarabeo 9 rig gets on the spot. An official with Saipem, a unit of Italian oil company Eni told Reuters the massive semisubmersible rig should be completed at the Yantai Raffles shipyard in Yantai, China, by the end of this year.

The journey to Cuba will take two months, and once it arrives it will be put into operation almost immediately, said the official, who asked not to be identified. It will be used first as an exploratory well for a consortium led by Spanish oil giant Repsol YPF, which drilled the only offshore well in Cuba in 2004 and said at the time it had found hydrocarbons.

Cuba has said it may have 20 billion barrels of oil in its offshore, but the U.S. Geological Survey has estimated a more modest 4.6 billion barrels and 10 trillion cubic feet of gas. Repsol has been mostly silent on the long delay in drilling more wells, but it is widely assumed in the oil industry it was due to the longstanding U.S. trade embargo against Cuba.

The embargo limits the amount of U.S. technology that can be used, which complicates finding equipment because U.S. companies have long dominated the offshore oil business.

A number of oil service companies have solicited information about Cuban regulations, diplomats said. Cuba’s state-owned oil company Cupet has been silent about the offshore activity and rejected requests for interviews.

A government official said the requests were denied because Cupet did not want to speak during the BP oil spill in the Gulf.

The spill has never reached Cuba, but it has heightened safety concerns both in the government and among oil companies with offshore blocks, sources said.

The prospect of drilling in Cuban waters has also raised pollution fears in Florida, which is just 80 km away from the island’s maritime boundary."

 

[WAR-rior]

I had planned on making a few more posts on China's offshore infrastructure and future plans, but we kept getting sidetracked onto tangential topics. Anyway, instead of making my final ten posts on China's infrastructure, I will leave you with one.

"Due to the longstanding U.S. trade embargo against Cuba, the embargo limits the amount of U.S. technology that can be used" by Cuba. To unlock her offshore oil wealth, Cuba had to wait until China's equipment-manufacturing industry was sufficiently advanced to provide the complex technology. The time has come.

Cuba to Start Offshore Oil Exploration in Early 2011 | Offshore Energy Today

"Cuba to Start Offshore Oil Exploration in Early 2011
Posted on Aug 3rd, 2010

A Chinese-built drilling rig is expected to arrive in Cuban waters in early 2011; likely opening the way for full-scale exploration of the island’s untapped offshore fields.

Companies with contracts to search for oil and gas in Cuba’s portion of the Gulf of Mexico have already begun preparations to drill once the Scarabeo 9 rig gets on the spot. An official with Saipem, a unit of Italian oil company Eni told Reuters the massive semisubmersible rig should be completed at the Yantai Raffles shipyard in Yantai, China, by the end of this year.

The journey to Cuba will take two months, and once it arrives it will be put into operation almost immediately, said the official, who asked not to be identified. It will be used first as an exploratory well for a consortium led by Spanish oil giant Repsol YPF, which drilled the only offshore well in Cuba in 2004 and said at the time it had found hydrocarbons.

Cuba has said it may have 20 billion barrels of oil in its offshore, but the U.S. Geological Survey has estimated a more modest 4.6 billion barrels and 10 trillion cubic feet of gas. Repsol has been mostly silent on the long delay in drilling more wells, but it is widely assumed in the oil industry it was due to the longstanding U.S. trade embargo against Cuba.

The embargo limits the amount of U.S. technology that can be used, which complicates finding equipment because U.S. companies have long dominated the offshore oil business.

A number of oil service companies have solicited information about Cuban regulations, diplomats said. Cuba’s state-owned oil company Cupet has been silent about the offshore activity and rejected requests for interviews.

A government official said the requests were denied because Cupet did not want to speak during the BP oil spill in the Gulf.

The spill has never reached Cuba, but it has heightened safety concerns both in the government and among oil companies with offshore blocks, sources said.

The prospect of drilling in Cuban waters has also raised pollution fears in Florida, which is just 80 km away from the island’s maritime boundary."

NAAAICCCE !

And in the future india's gonna import these equipments from china for obviously low cost reason as compared to west.

China will be India's biggest trading partner in next 10 years .......

obviously when two 120+ bn countries trade among each other, its volume has to be larger than life........

 

[below_freezing]

also note that the US has frequently used technological blackmail against other countries. they sell them the technology but withhold maintainance and parts so the buyer is forever dependent on the US.

 

[Asian.Century]

Because it is centralized, the central government can plan for the entire country (but only in a general way as they abandoned traditional communism). For instance, if they currently have a GDP of 100 billion and want to achieve a 10% increase. Then they will distribute this extra 10billion they have to make among the provential governments, then the provential to municipal, and this goes all the way to each village. It is more like a sales department of a firm. In many ways, the new Chinese Cummunist run the country in such way. So it keeps the the economy strong and a large proportion of the local tax goes to central government. This ensure the government budget healthy.

However, as the Belt and Road initiative implemented in a global scale, Chinese government now needs to borrow foreign money. I believe this is why they issued bonds in international market for the first time last year. However, even though people still have strong belief in its economy that these bonds were sold out within days.