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China’s Challenges in the Year Ahead
Posted by Randy | January 11, 2012

A new piece from The Diplomat titled “China’s 2012 Challenges” lays out twelve key challenges that the People’s Republic of China and the Chinese Communist Party will face during the next year.  These challenges range from the need for economic reforms, to social instability and expected friction in the South China Sea.  It is vital that American policymakers know and understand these challenges while prioritizing U.S. foreign policy initiatives.  Here are three of the twelve challenges identified in the piece:

  • The run-up to Beijing’s once-in-a-decade political transition in October 2012 is likely to generate intensified clampdowns internally and assertive rhetoric abroad as China faces rising domestic challenges, and finds itself constrained internationally. Fearful neighbors may further strengthen ties with the United States. Pariah/failed state “allies” North Korea, Pakistan, and Iran will likely experience problems that affect China’s own interests.
  • China’s government will likely tighten domestic media reporting guidelines, as it remains highly concerned about social unrest and seeks to suppress news that might create controversy ahead of October 2012. Investors will have to take particular care that important data points are not swept under the table.
  • There is a heightened risk that inflation will exceed expected levels. If growth falters as real estate prices continue to fall and the economies of major trading partners remain weak, Beijing may be forced to loosen lending restrictions. Such monetary supply expansion would very likely push inflation well beyond the 2.8% figure that Li Daokui of People’s Bank of China forecasts for 2012.

The piece can be read in its entirety here: http://the-diplomat.com/china-power/2012/01/08/chinas-2012-challenges/

Comments
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  • Barbara Wiggins commented on 1/16/2012
    I have been reading and listening to comments about the state of our economy for years and none of them have been as critical as those made in reference to President Obama and some of the things he has had to do to get our economy on track. The debt we are in right now didn't just happen with our current President. Many of the critical problems we have today came during before he was voted into office. Everybody's buttons seems to be on mute when it comes to the reality of how we got to where we are today. It has taken a lot of money, I believe, without a shadow of a doubt to jump start our economy. It is a sad state of affair to listen to the agendas of the people who had no intentions of ever supporting President Obama in just about anything he proposes. When President Bush was in office along with Dick Cheney, I can't remember the Republican Party being as cruel and disrepectful to them as they are to President Obama. Speaking of disrepectful, the aweful things being said about Mrs. Obama, to degrade her as a woman and the wife of the President of the United States of America. As far as the checks and balances embedded in the Constitution, I am sure that the decisions that were made within the boundaries of being legal. My reason for making this comment is all about my faith in God leading the President, his staff, and those appointed to advise him, just like he leads all of His people. I will say this with all knowledge of being a Christian, when God gets through with the people who are saying and doing some of the disrespectful things they are doing and saying and calling it freedom of speech, I would not want to be in their shoes. God is not about confusion, however, what I have seen ever since President Obama has been in office is an embarrassment and shame for the people who hate him, because of the color of his skin. Yes, I believe this is true and so many people are counting on this hate to pave the way for them to get to the White House. To be perfectly frank about the whole matter, it was never intended that he as a black man would get this far into the political arena. The Bible clearly say, "No weapon formed again you shall prosper." My trust is in God that this country will survive through truth and obedience in people doing the right and honorable thing to one another. Clearly this is not so, when it comes to people actually trying to work together for the good of the people without regards to race, creed, color, or origin. I do not like feeling as though I have to lower myself to speaking on these terms, however the agenda for these United States of America is bigger than what is being portrayed. It has been all about what the President is not doing, but what other advocates are clearly not doing is laying out a clear and concise picture of what they propose to do to make this country a better place for everyone to live in harmony. It has been about how much money they can and have already raised so they can buy time on television to say cruel and disrepectful things about one another. Where is the 18th Chapter of Matthews found in the politics and is it even thought about. God is so in this picture when it comes to how we should speak of and to one another. One day many will have to rise and answer to what is in the Constitution and to what cause it is there. For the sake of liberty and justice for all in truth and honesty, I have spoken.
  • pritesh surve commented on 2/6/2012
    Very nice article.....Thanks for post this information...nice blog...
  • George Cégalapítás commented on 8/15/2012
    Hi Mr. Forbes, the most important economic story of the first half of the 21st century is how China is changing the global economy. There are a lot of benefits to this change – hundreds of millions of new consumers to drive global growth, fresh opportunities for entrepreneurship and job creation and heightened demand for everything from American corn to Australian iron ore. But not all of the impact is seen as positive...
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