ITS OFFICIAL: China world's 2nd largest economy!

**tidus1203** · July 30th, 2010 08:13 PM

It was bound to happen! Japan is in a state of COMA since their bubble bursted in the late 80's. Rapid economic growth in China lifting millions out of poverty. Lots of foreign capital inflows. Not bad for a "communist" country.

(Reuters) - China has overtaken Japan to become the world's second-largest economy, the fruit of three decades of rapid growth that has lifted hundreds of millions of people out of poverty.

http://www.reuters.com/article/idUSTRE66T1HT20100730

And depending on currency, it will overtake the US by 2025...

Time to buy more Chinese Yuan... Anyone selling theirs? I am willing to buy your Yuan for CNY6.35 for every 1 USD. Or if you prefer Peso 1 CNY I am willing to give P7.25 hehehe

**tidus1203** · July 30th, 2010 08:35 PM

Also I don't have the exact date when, but it was around 3 years ago that China overtook Germany for the 3rd top spot...

I am still baffled why China is not a member of the prestigious G8 (bias lang kasi sila kasi communist)? Italy is still there? Italy?? They are no longer a very important player in the world economy unlike China who is the banker of many nations including the US...

**jang** · July 30th, 2010 08:39 PM

Originally Posted by tidus1203

It was bound to happen! Japan is in a state of COMA since their bubble bursted in the late 80's. Rapid economic growth in China lifting millions out of poverty. Lots of foreign capital inflows. Not bad for a "communist" country.

http://www.reuters.com/article/idUSTRE66T1HT20100730

And depending on currency, it will overtake the US by 2025...

Time to buy more Chinese Yuan... Anyone selling theirs? I am willing to buy your Yuan for CNY6.35 for every 1 USD. Or if you prefer Peso 1 CNY I am willing to give P7.25 hehehe

It's communist in name only.

**tidus1203** · July 30th, 2010 08:46 PM

Actually politically they are still very communist marami parin silang restrictions... Pero as Jim Rogers said, the Chinese are the best capitalist in the world!

**vinrem** · July 30th, 2010 08:55 PM

Originally Posted by tidus1203

Time to buy more Chinese Yuan... Anyone selling theirs? I am willing to buy your Yuan for CNY6.35 for every 1 USD. Or if you prefer Peso 1 CNY I am willing to give P7.25 hehehe

Sir Tidus, are you sure about this?

**tidus1203** · July 30th, 2010 08:57 PM

Yeah. Alam ko lugi ako di lang ako sure sa rate ngayon nasa 6.70 ba? Ginawa ko yan para maenganyo kayo ibenta sakin CNY nyo. Who wants PHP third world currency anyway, I rather have CNY to store my wealth in...

Basta its my belief CNY will become a reserve currency if China let's it float freely and fully convertible. Mapapilitan din sila eventually...

**vinrem** · July 30th, 2010 09:08 PM

Originally Posted by tidus1203

Yeah. Alam ko lugi ako di lang ako sure sa rate ngayon nasa 6.70 ba? Ginawa ko yan para maenganyo kayo ibenta sakin CNY nyo. Who wants PHP third world currency anyway, I rather have CNY to store my wealth in...

Basta its my belief CNY will become a reserve currency if China let's it float freely and fully convertible. Mapapilitan din sila eventually...

Yup, its somewhere around that rate, but dont get me wrong, im not into money changing business.

Pero matatagalan pa bago they freely float their currency, imagine mamahal ang lahat ng goods that they are selling, yan ang kinatatakutan ng mga manufacturers sa china, one supplier said that baka aabot ng 1usd to 5+rmb na lang.

**tidus1203** · July 30th, 2010 09:12 PM

Actually they have to face reality, the currency is currently undervalued that is one huge reason why they have so much surplus against all other countries they are trading with... One favorable trend I am seeing is consumption there is rising and demand for foreign goods rising, a good sign for eventual free floating in the future...

They have to give in at some point...

**vinrem** · July 30th, 2010 09:22 PM

Hahahha well eventually talaga aabot sa ganyan, question is kelan, basta while others are waiting, mag stock na tayo ng rmb which im doing right now.

And yes, their consumption for foreign goods is going up, but very slow and you have to keep in mind, chinese are very patriotic people, they tend to buy more local goods than foreign goods, well except for those chinese whom you see lining up at the Louie Vitton stores or other high branded stores in HK hehehehe.