Below are useful China links that were previously in the "Useful Links" section on the right side of the blog.
China Weather
Xinhua News Agency
China News Service (was English before, but is Chinese now)
China Internet Information Center
China Facts and Figures (from the China Internet Information Center)
China Ag Statistics (from the USDA ERS)
Monday, December 31, 2007
Thursday, December 20, 2007
Welcome FP Readers
If you found this blog by way of Financial Partner magazine, welcome! I have posted over 60 entries, and many pictures, about the Vermont agricultural trade mission to China in October 2007. Please feel free to look around.
If you are new to blogs, click here for some helpful tips.
If you are new to blogs, click here for some helpful tips.
What does it all mean?
This is all very nice, this trip to China, but what does it have to do with agriculture in Vermont and the Northeast?
For a variety of reasons, in recent years the world has effectively become smaller. (Thomas Friedman says the same thing a different way. He says "The World Is Flat.") The reasons include:
On the input side, China now competes with the rest of the world, including us, for basic commodities such as oil, steel and fertilizer. This increased demand is increasing prices worldwide.
On the output side, China affects world markets in two ways. One the one hand, their increasing demand can drive up prices. This is a factor in today's high dairy prices. On the other hand, China's production of certain agricultural products is also increasing. This increased supply puts downward pressure on prices. We have seen this in apples and timber.
Specifically concerning dairy, China is presently a net importer. The U.S. exported over $100 million of dairy products to China in 2006, mostly powders and concentrates. China has plans to become self-sufficient in dairy, even an exporter. It remains to be seen if those plans can be realized.
We saw several dairy processing facilities in China, but few produced cheese and none produced aged cheese. There isn't presently much demand in China for cheese. But demand for other dairy products has increased in recent years as China's increasing wealth has resulted in changes in diets. It is likely that demand for cheese will increase, too. The U.S. Dairy Export Council has noted that demand for cheese in both Japan and Korea increased significantly after those countries hosted the Olympics:
Perhaps the same will happen in China.
So, to return to the subject of this post: What does it all mean? In short, China significantly affects the prices that Northeast farmers receive for their products and pay for their inputs, whether or not there is direct trade between the Northeast and China. This brings both new opportunities and new challenges.
Note: If I counted correctly, this is my 69th post (and nearly my last post) about the trip to China with the agricultural delegation led by Vermont Secretary of Agriculture Roger Allbee. The trip was a wonderful adventure! Blogging about it has been fun, too. Thanks for reading.
For a variety of reasons, in recent years the world has effectively become smaller. (Thomas Friedman says the same thing a different way. He says "The World Is Flat.") The reasons include:
- Advances in transportation (e.g., container ships).
- Advances in communications (e.g., the Internet, fiber optics).
- The lowering of trade barriers (e.g., the World Trade Organization).
- The lowering of political barriers (e.g., the end of the Cold War).
- Increasing wealth in many parts of the world, including China, India and oil producing countries, causing increased demand.
On the input side, China now competes with the rest of the world, including us, for basic commodities such as oil, steel and fertilizer. This increased demand is increasing prices worldwide.
On the output side, China affects world markets in two ways. One the one hand, their increasing demand can drive up prices. This is a factor in today's high dairy prices. On the other hand, China's production of certain agricultural products is also increasing. This increased supply puts downward pressure on prices. We have seen this in apples and timber.
Specifically concerning dairy, China is presently a net importer. The U.S. exported over $100 million of dairy products to China in 2006, mostly powders and concentrates. China has plans to become self-sufficient in dairy, even an exporter. It remains to be seen if those plans can be realized.
We saw several dairy processing facilities in China, but few produced cheese and none produced aged cheese. There isn't presently much demand in China for cheese. But demand for other dairy products has increased in recent years as China's increasing wealth has resulted in changes in diets. It is likely that demand for cheese will increase, too. The U.S. Dairy Export Council has noted that demand for cheese in both Japan and Korea increased significantly after those countries hosted the Olympics:
Perhaps the same will happen in China.So, to return to the subject of this post: What does it all mean? In short, China significantly affects the prices that Northeast farmers receive for their products and pay for their inputs, whether or not there is direct trade between the Northeast and China. This brings both new opportunities and new challenges.
Note: If I counted correctly, this is my 69th post (and nearly my last post) about the trip to China with the agricultural delegation led by Vermont Secretary of Agriculture Roger Allbee. The trip was a wonderful adventure! Blogging about it has been fun, too. Thanks for reading.
One Thing About China
If there is one thing that I would most like to convey about China, it is this: China is changing rapidly.
China has had only four rulers since the Communist revolution in 1949: Mao Zedong, Deng Xiaoping, Jiang Zemin, and the current leader - Hu Jintao. Most of the changes have occurred since Deng came to power in 1978--in other words, in less than 30 years.
Deng promoted "socialism with Chinese characteristics," which introduced certain aspects of capitalism into the Chinese economy. The result has been a sustained period of strong economic growth--a compound average growth rate of over 9% per year for 25 years. (The U.S. averaged 3.1% over the same period.)
Deng also introduced the "one child policy." (See this post.) The first children born under this policy are now in their 20s. I cannot predict how this policy will affect China, but it is bound to bring about change, just as the Baby Boomer generation in the West profoundly affected our society. Demographics is destiny.
China has historically been a self-contained society. Prior to the 20th century, Buddhism was one of the few outside influences to have had a significant effect on China. (Buddhism came to China from India in the 1st or 2nd century AD.) But China has recently made a deliberate effort to more fully engage with the rest of the world.
Two examples stand out. Both of these events are hugely important for China's development and integration with the world.
First, in 1986 China began negotiations to become a member of the World Trade Organization. Those negotiations took 15 years, but succeeded in 2001.
Second, in 1991 China first sought to host the Olympics, entering a bid for the 2000 Summer Olympics. China lost to Sydney, but bid again eight years later. This time China won the right to host the 2008 Summer Olympics.
Increased foreign interactions will only accelerate the pace of change.
A few things from our trip that highlight the fact that China has recently been changing rapidly:
One thing to keep in mind: Rapid change may at times unfold in unexpected directions.
China has had only four rulers since the Communist revolution in 1949: Mao Zedong, Deng Xiaoping, Jiang Zemin, and the current leader - Hu Jintao. Most of the changes have occurred since Deng came to power in 1978--in other words, in less than 30 years.
Deng promoted "socialism with Chinese characteristics," which introduced certain aspects of capitalism into the Chinese economy. The result has been a sustained period of strong economic growth--a compound average growth rate of over 9% per year for 25 years. (The U.S. averaged 3.1% over the same period.)
Deng also introduced the "one child policy." (See this post.) The first children born under this policy are now in their 20s. I cannot predict how this policy will affect China, but it is bound to bring about change, just as the Baby Boomer generation in the West profoundly affected our society. Demographics is destiny.
China has historically been a self-contained society. Prior to the 20th century, Buddhism was one of the few outside influences to have had a significant effect on China. (Buddhism came to China from India in the 1st or 2nd century AD.) But China has recently made a deliberate effort to more fully engage with the rest of the world.
Two examples stand out. Both of these events are hugely important for China's development and integration with the world.
First, in 1986 China began negotiations to become a member of the World Trade Organization. Those negotiations took 15 years, but succeeded in 2001.
Second, in 1991 China first sought to host the Olympics, entering a bid for the 2000 Summer Olympics. China lost to Sydney, but bid again eight years later. This time China won the right to host the 2008 Summer Olympics.
Increased foreign interactions will only accelerate the pace of change.
A few things from our trip that highlight the fact that China has recently been changing rapidly:
- The China Ag Trade Fair that we attended was only the 5th such event.
- The Dairy Development Seminar that we attended was only the 5th such event.
- The tremendous amount of new building construction that we saw.
- The relatively new infrastructure we saw: roads, airlines, airports, cell phone towers.
One thing to keep in mind: Rapid change may at times unfold in unexpected directions.
China's 5000 Year History
China has a 5000 year history that makes the rest of the world look young. It was humbling to me to realize how little I knew of this rich history. Even a brief overview of this history is helpful in understanding China today.
For much of its history, China developed independently of the West. Writing, for example, developed independently in China and the West. Several major inventions were developed in China before the West, including: paper, printing, gunpowder, the compass and paper money.
Western civilization even today bears the influence of the Roman Empire (44 BC-476 AD). In China the Han Dynasty was roughly contemporaneous (206 BC-220 AD). By many measures of wealth and power, the Han Dynasty equaled or exceeded the Roman Empire, yet few in the West are familiar with it.
For over 1,500 years after the end of the Han Dynasty, China enjoyed several long periods of progress and prosperity, interspersed by short periods of instability. In contrast, there was little progress in the West for nearly 1,000 years after the fall of the Roman Empire. China was arguably the richest and most powerful country in the world for much of this time. There was little contact between China and the West during this period. The travels of Marco Polo to China in 1271-1295 was the most significant contact.
The West began to catch up to China with the Age of Exploration in the 1400s and 1500s. Western explorers sailed from Europe to Africa, south Asia, east Asia, and the Americas. Independently of the West, China also launched great sea voyages of exploration in the 1400s. But after seven successful voyages, reaching as far as east Africa, this initiative was halted. China reverted to an internal focus, while the West increasingly turned its focus outward.
The West overtook China with the Industrial Revolution of the late 1700s and early 1800s. Britain became the world's greatest industrial and sea power. Frictions developed over trade, eventually leading to war. Over a period of about 60 years, China suffered a series of defeats at the hands of various foreign powers: Britain (the Opium Wars, 1842 and 1860), France (1884), and Japan (1895). In the Boxer Rebellion of 1900, China was defeated by the Eight-Nation Alliance (Japan, Russia, Britain, France, U.S., Germany, Italy, Austria).
The last imperial dynasty collapsed in 1911. The Nationalist Party was established the next year and ruled weakly. The Communist Party of China was formed in 1921, inspired by the Bolshevik Revolution in Russia in 1917. At times the Nationalists and the Communists worked together, and at times they fought each other. Following an uneasy collaboration in World War II (when Japan brutally occupied part of China), open civil war broke out. In 1949 the Nationalists withdrew to Taiwan, and the Communists proclaimed the Peoples Republic of China on the mainland.
Mao Zedong led the Communist Party of China for over 40 years, from 1934 until his death in 1976. People in China today mostly regard Mao as a great leader, albeit with minor flaws, who unified the country and set China on the path to again become a world power. Certainly Mao instituted major changes in Chinese society, including socialism, land reform and marriage reform. But many would argue that the Great Leap Forward (1958) and the Cultural Revolution (1966) were major disasters for China, the first causing millions of peacetime deaths and the second leading China to the brink of civil war.
The next post discusses developments in China after Mao.
For much of its history, China developed independently of the West. Writing, for example, developed independently in China and the West. Several major inventions were developed in China before the West, including: paper, printing, gunpowder, the compass and paper money.
Western civilization even today bears the influence of the Roman Empire (44 BC-476 AD). In China the Han Dynasty was roughly contemporaneous (206 BC-220 AD). By many measures of wealth and power, the Han Dynasty equaled or exceeded the Roman Empire, yet few in the West are familiar with it.
For over 1,500 years after the end of the Han Dynasty, China enjoyed several long periods of progress and prosperity, interspersed by short periods of instability. In contrast, there was little progress in the West for nearly 1,000 years after the fall of the Roman Empire. China was arguably the richest and most powerful country in the world for much of this time. There was little contact between China and the West during this period. The travels of Marco Polo to China in 1271-1295 was the most significant contact.
The West began to catch up to China with the Age of Exploration in the 1400s and 1500s. Western explorers sailed from Europe to Africa, south Asia, east Asia, and the Americas. Independently of the West, China also launched great sea voyages of exploration in the 1400s. But after seven successful voyages, reaching as far as east Africa, this initiative was halted. China reverted to an internal focus, while the West increasingly turned its focus outward.
The West overtook China with the Industrial Revolution of the late 1700s and early 1800s. Britain became the world's greatest industrial and sea power. Frictions developed over trade, eventually leading to war. Over a period of about 60 years, China suffered a series of defeats at the hands of various foreign powers: Britain (the Opium Wars, 1842 and 1860), France (1884), and Japan (1895). In the Boxer Rebellion of 1900, China was defeated by the Eight-Nation Alliance (Japan, Russia, Britain, France, U.S., Germany, Italy, Austria).
The last imperial dynasty collapsed in 1911. The Nationalist Party was established the next year and ruled weakly. The Communist Party of China was formed in 1921, inspired by the Bolshevik Revolution in Russia in 1917. At times the Nationalists and the Communists worked together, and at times they fought each other. Following an uneasy collaboration in World War II (when Japan brutally occupied part of China), open civil war broke out. In 1949 the Nationalists withdrew to Taiwan, and the Communists proclaimed the Peoples Republic of China on the mainland.
Mao Zedong led the Communist Party of China for over 40 years, from 1934 until his death in 1976. People in China today mostly regard Mao as a great leader, albeit with minor flaws, who unified the country and set China on the path to again become a world power. Certainly Mao instituted major changes in Chinese society, including socialism, land reform and marriage reform. But many would argue that the Great Leap Forward (1958) and the Cultural Revolution (1966) were major disasters for China, the first causing millions of peacetime deaths and the second leading China to the brink of civil war.
The next post discusses developments in China after Mao.
Olympic Symbolism
China will host the 2008 Summer Olympics in Beijing. This is a big deal for China. During our visit it was never far from mind, even at the Great Wall:
The Olympics are important for China's reputation in the world, as discussed in this article. But what I want to discuss in this post is some of the symbolism that China has created for the Olympics. The Chinese are fond of symbolism, as the following two examples show.
The 2008 Olympic emblem-"Dancing Beijing"-represents both a dancing person and the Chinese character for Beijing. You can see the Dancing Beijing Olympic emblem in the photo above. It is meant to represent China's spirit, commitment to Olympic ideals, and invitation to the world. You can read more about the meaning of the Dancing Beijing Olympic emblem here.
The 2008 Olympic mascots-"Fuwa"-are particularly endearing: Beibei, Jingjing, Huanhuan, Yingying and Nini. There is much symbolism in these characters, beginning with the fact that the first syllables of their names say "Welcome to Beijing" or "Beijing welcomes you." You can read the fascinating story behind the Fuwa here and here.
The Olympics are important for China's reputation in the world, as discussed in this article. But what I want to discuss in this post is some of the symbolism that China has created for the Olympics. The Chinese are fond of symbolism, as the following two examples show.The 2008 Olympic emblem-"Dancing Beijing"-represents both a dancing person and the Chinese character for Beijing. You can see the Dancing Beijing Olympic emblem in the photo above. It is meant to represent China's spirit, commitment to Olympic ideals, and invitation to the world. You can read more about the meaning of the Dancing Beijing Olympic emblem here.
The 2008 Olympic mascots-"Fuwa"-are particularly endearing: Beibei, Jingjing, Huanhuan, Yingying and Nini. There is much symbolism in these characters, beginning with the fact that the first syllables of their names say "Welcome to Beijing" or "Beijing welcomes you." You can read the fascinating story behind the Fuwa here and here.
How to read this blog
If you are familiar with blogs or if you have been reading this blog all along, you can skip this post. But if you are new to blogs, here are some suggestions on how to get the most out of this one.
Entries are posted in chronological order, most recent on top. Therefore, the blog is best read from the bottom up. However, the main page for this blog only shows 10 posts. You have to scroll down and click the "Older Posts" link at the bottom to get the 10 previous posts, etc. As there are presently over 60 posts on this blog, this is a tedious way to get to the beginning of the blog.
An easier way is to use the navigation links under the blog Archive on the left side of the blog. This blog was started in October 2007. All of the "live" posts from the China trip are in October. I have continued to post follow-up entries in November and December. Click on the month under the blog Archive navigation links to see all the entries for that month. (Or click the little triangle to the left of the month to see just the titles of the entries for that month.)
To make it even easier, here are the links for the first three months of entries on this blog. Read each one from the bottom up, if you want to read the entire blog in chronological order.
October 2007
November 2007
December 2007
This blog has a handy search feature in the upper left hand corner. For example, if you want to know if I mentioned methane digesters in any posts, enter "methane" in the search field and click "Search." You will find this post, of course, and you will also find the post titled "Jinan Field Trip" from 10/13/07.
This blog allows readers to post comments. You can view comments posted by others, or post your own comments, by clicking the "comments" link at the end of any post.
If you want to send me e-mail, you can find my e-mail address by clicking my name under "Contributors" to the left, and then clicking "Email" under "Contact."
UPDATE: All of the 2007 entries on this blog are about the China trip. In 2008 we started to include other subjects of interest to the Yankee community.
Entries are posted in chronological order, most recent on top. Therefore, the blog is best read from the bottom up. However, the main page for this blog only shows 10 posts. You have to scroll down and click the "Older Posts" link at the bottom to get the 10 previous posts, etc. As there are presently over 60 posts on this blog, this is a tedious way to get to the beginning of the blog.
An easier way is to use the navigation links under the blog Archive on the left side of the blog. This blog was started in October 2007. All of the "live" posts from the China trip are in October. I have continued to post follow-up entries in November and December. Click on the month under the blog Archive navigation links to see all the entries for that month. (Or click the little triangle to the left of the month to see just the titles of the entries for that month.)
To make it even easier, here are the links for the first three months of entries on this blog. Read each one from the bottom up, if you want to read the entire blog in chronological order.
October 2007
November 2007
December 2007
This blog has a handy search feature in the upper left hand corner. For example, if you want to know if I mentioned methane digesters in any posts, enter "methane" in the search field and click "Search." You will find this post, of course, and you will also find the post titled "Jinan Field Trip" from 10/13/07.
This blog allows readers to post comments. You can view comments posted by others, or post your own comments, by clicking the "comments" link at the end of any post.
If you want to send me e-mail, you can find my e-mail address by clicking my name under "Contributors" to the left, and then clicking "Email" under "Contact."
UPDATE: All of the 2007 entries on this blog are about the China trip. In 2008 we started to include other subjects of interest to the Yankee community.
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