Editor Talks China at IOP

The former China bureau chief for the Financial Times said last night that although China is increasing its international political and economic power, the United States has had trouble adapting to the country’s growing clout.

In a lecture at the Institute of Politics, James Kynge spoke about the correlation between the rapid growth of the Chinese economy and the nation’s growth in political power in the international community.

Kynge told the audience of over 200 people that several global issues, including the global rate of inflation, the future of trade imbalances, and Asia’s business cycle, will be heavily influenced by China.

“China for the last 20 years has undergone an economic miracle unprecedented in history if you look at the speed with which they’ve raised their income,” said Jeffrey A. Frankel, a professor of capital formation and growth at the Kennedy School of Government, in an interview before the event.

Frankel said that although China has been rapidly industrializing, it has done so without a large base of natural resources.

“China has accomplished this miracle in much the same way that previous great powers have risen...which is manufacturing and trade. You don’t necessarily need natural resources to do that,” Frankel said.

Dwight H. Perkins, a professor of political economy, said that China’s incredibly rapid growth should not come as a surprise, despite its lack of natural resources.

“Countries that tend to be super rich in natural resources tend to be quite poor,” Perkins said.

In an interview before the speech, Kynge said that he felt that the U.S. did not know how to adequately respond to China’s growing political influence in central and southeast Asia.

“I really get a sense that the White House doesn’t have much of a clue what to do about that,” he said.

He also said that trade imbalances with the U.S. would not be easily assuaged.

“I think the trade balance is going to be pretty intractable for quite some time,” he said.

At least one student was impressed with the number of issues in which China has a major hand in the modern world.

“Everything is complicated and so interrelated...I guess all you can do is to be more informed about what’s going on at every step of the way,” said Nicholas N. Culbertson ’11.