Main

May 26, 2006

China Emerging as World Power and Implications

In this entry area, I would like to discuss, sort through and otherwise leave information regarding how China is emerging as the main world leader.
The whole world knows about the size of China from many levels, particularly in its people. In my recent readings, (Piazza-Georgi, 2002) summarizes the significance of human and social capital relative to growth within an organizations framework. The tremendous growth that we are witnessing in China stems from many sources but particularly its human capital. Schultz's (1998) work also supports the ability to quantify this in terms of economic meaning. Challenges that I see with this for China and the world is how this will affect China ideologically. The history of China seems to lean toward empire solidification. Events that point to a coalescing of power at the top of the bureaucracy is Hu Jintao's appointment as head of the Chinese Military in the last 24 months. In recent days, the ousting of Shanghai Communist Party secretary Chen Liangyu (Washington Post) for alleged misuse of $1.5 billion of social security funds, shows that Jintao(Beijing) is exercising its political control over a geographical area that is a primary link tradewise to the rest of the world. It will be interesting to see how the Chinese media or other sources represents this (or doesn't) in the next few months.

Other areas of interest: The visit of top NASA officials from the US to China in order to solidify relations regarding Chinese-US space policy. Although this has not been publicized very much, this is a large step towards joint efforts. Particularly from the Chinese side of things. Again with fairly poor human resource/human capital systems in place, as the technology avails itself to ramp us this area, intellectual capital that has equalized within the systems may become imbalanced due to upgrading of use of human capital. How this capital is treated, controlled and potentially manipulated has ramifications on a global scale for the long term.

http://www.tc.umn.edu/~kenny043/HRDChinaStudy/HRDChinaStudy/UMHRDChpg1.html