Re: [Marxism] Chine now largest car market

["Lüko Willms" <lueko.willms@xxxxxxxxxxx>]

On Mon, 16 Feb 2009 21:19:27 +0100, S. Artesian wrote:

> You write back and tell us how China is now, based on one month, or two 
> months, or three months, the world's largest auto market-- 

  by selling more cars within China that cars are sold in the USA. A simple 
statistical fact. 

> as if being home-based in the world's largest auto market 
> has preserved  GM, Chrysler, Ford from the impacts of 
> overproduction-- as if being based in Japan has protected 
> Honda, Nissan, Toyota. 

  The big difference is that the markets in the USA and Japan are actually 
saturated, even if the overproduction crisis is being resolved in e.g. Chrysler 
and GM going out of business, while in China there are still millions and 
millions of people who never had a car in their disposal (not that I like or 
favor the reinforcement of the car culture, but simply observing what's going 
on, and conceding that even the very important investments which China is 
making in railways does not stop car sales to increase). 

  BTW, you mentioned in an earlier message that the car production in China 
is slightly over 5 million; but according to statistics by the OICA (World 
Motor 
Vehicle Manufacturers Organisation), China produced 8.8 million in 2007, 
behind Japan with 11.6 million and the USA with 10.8 million. See exact 
figures in
> <http://oica.net/wp-content/uploads/all-vehicles.pdf>

  As to the general prospects of China -- well, my crystal ball is just in 
repairs, so I can't give an exact prediction. Fact is, that China is very hard 
hit 
by the world economic crisis, but it will recover as world capitalism will 
recover somehow (even if not fully). The problem for the world is that the 
USA is sucking up the world for its giant bailout programme of more than 
700'000 million USA, which somebody has to buy as US government bonds. 
This will even make the credit situation uncomfortable for minor imperialist 
countries. See the sinking exchange rate of the USD against the EUR; it was 
at abouts of 1.50 USD/EUR, and it is lingering now at 1.26 USD/EUR. Money is 
flowing into the USA again in large quantities. 


Cheers, 
Lüko Willms
Frankfurt, Germany
--------------------------------
visit http://www.mlwerke.de Marx, Engels, Luxemburg, Lenin, Trotzki in Ge
________________________________________________
YOU MUST clip all extraneous text when replying to a message.
Send list submissions to: Marxism@xxxxxxxxxxxxxxxxxxx
Set your options at: 
http://lists.econ.utah.edu/mailman/options/marxism/archive%40archives.econ.utah.edu