Saturday, May 29, 2004

Gya: He who pays the piper

So what tune will China play for Guyana to dance? China is providing $5M U.S. for the construction of a conference hall in that country and

The Chinese are responsible for construction, leasing machinery, providing materials, and arranging transport. Guyanese would be involved in checking the work to ensure that it is in accordance with design specifications.
So, what does China get out of it? Why is Beijing coughing up all this largesse when the Chinese economy is tanking, like other Asian economies did a while back.

Here's a clue:
Tao said Sino-Guyana bilateral and economic and trade cooperation had great potential because China has strong technical capacity while Guyana is gifted with an advantageous geographical position and rich natural resources.
China desperately needs new markets and resources to ensure that its faltering economy doesn't tank. Today, China's efforts at economic expansionism are responsible for the high prices of fuel, steel, and cement because China is busily absorbing what the market has to offer and squeezing out other nations.

If the price to pay for a new source of raw materials and a new market for Chinese goods is a measly $5M U.S., heck, Beijing will pay it with a smile. Whatever it takes to keep the Chinese economy from heading the way of Japan's, Beijing will do. In the meantime, we all suffer because China-induced scarcity of goods is sending prices soaring internationally.

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