Finance, Forex and Investments

Why is the western governments afraid of China and India booming economy?

we often hear many western leaders saying in the their conferences that they face a new chalenges the emerging economic powers of India and China some time Brazil and S. Africa what wrong with that? yet when they met in their G8 propaganda you hear them saying they admire the emegence of the Asian economies such as India and China, and they will eradicate poverty in Africa. Do they really mean it or they want Africa to die in hunger China and India to remain in poverty? can any one tell me how to call this in English hypocrisy or greediness?my english is very poor sorry! Some say it is an excuse of the enlargement of the EU wht you think?

Public Comments

1. I'm not afraid of India or China. Some people in IT are afraid of their jobs being outsourced to India.
2. at the moment they are more powerful then India and china but if they have money then the scale would shift and India and china will also have power! they are afraid of the power!
3. It is a case of neither. By the way, China has openly stated that their ultimate goal is to defeat the United States in a war. And thanks to 'ol Bill Clinton handing nuclear technology over to them to finance his campaign in '96, they might.
4. They are affraid because too much competition is harmful for Capitalism as profits diminish... That´s how wars start. We are living in the phase of decline of Imperialism ( China, Iran, Chavez, Morales,North Korea, Iraq, Hezbollah,... Nobody cares the oppinion of USA anymore.
5. China and India have a combined population of near 2.5 billion people, almost half that of the world. Now imagine all those people having the same lifestyles as UK and USA with a combined population of about 310 million or even add Europe in and Australia and its still only about 600 million people. Now whos going to be the world superpowers in that situation???? China and India with their dominant population or the West with not even a quarter of their population? Do you really think USA are willing to give up their number 1 status??
6. Its because they truly "cant match" India and China at this stage. So all they do is keep crying and complaining abt how India and China are progressing. Lemme give u an eg of US and its allies' hypocrisy- China currently has arguable the most sophisticated and advanced military in the world and I see politicians in US "condemning" that almost every 3rd day. But why do the arse's forget that they did exactly what China is doing today. The Cold War, the time between 1960s to 2000, that was the time when the US went stamping abt its authority everywhere. Figure this - The Indian Rupee, which until Mar 2005 had a conversion rate of 1 US$ = INR 58, has today dominated the $ and the current rates are 1US$ = INR 40. The Indian Rupee is the BEST PERFORMING ASIAN CURRENCY IN THE WORLD. Check any site u wanna for proof. India is the IT CAPITAL OF THE WORLD. China is a MILITARY POWERHOUSE. And US, well, we better not compare it with India and China at the moment. The US has well passed its prime and now, its India and China that will dictate terms to it. Like it or not, its gonna be true few years from now.
7. We won't be the ruler of the universe and that's scary to us. That certainly is part of it. However, there are real challenges here. China is willing to deal with pretty much any country economically with little regard for human rights or the political situation (the Sudan, Venezuela, etc.). There are real concerns about how well we can compete with lower-cost labor. These countries seem to care very little about addressing environmental issues while they are still "developing". China also refuses to stop manipulating their currency so we can compete fairly.
8. Well, I actually did my my dissertation on US foreign policy and China's rising superpower status. What I discovered was that USA is not afraid of India's rising superpower status but only that of China. China's rising superpower status is seen as a direct threat to the USA whereas India's rising superpower status is seen as a direct asset which can balance China. There are several reasons for this: The international relations theory (known as "realism", "power politics" and realpolitik") dictate that rising powers are always a threat to the established hegemon and that changing balances of power always bring warfare with them. The USA believes that China will soon be tempted to resort to change the global balance of power in its favour eventually. There is another theory called "Democratic Peace Theory" which states that democracies hardly ever go to war with democracies, but that democracies and dictatorships will always be on a collision course. This is why India (being a secular democracy) is seen as being a natural ally against China. The US intelligence agencies have clear evidence that China is deliberately building its military and because the increase in its military spending is seen as incommensurate with its rising economy, it can only be concluded that this is for offensive purposes. There are many flashpoints, such as Tawian, North Korea etc where China and the USA will be pitched at opposing sides. Also relevant is the question of Israel. The reason that Israel has always been victorious in the arab-Israeli conflict is because Russia (the supporter of the Arabs) was never able to give the same level of military aid as the USA (the supporter of Israel) was able to. However, imagine when China becomes the superpower and if the Arab states renew their declaration of war against Israel??? China will be able to far surpass the level (both quality and quantity) of aid that the USA can give. China has always been a natural ally of the Arab states. So in response to your question, the USA is afraid of China's booming economy because the USA will only lose out. So too, will India.
9. Because the booming economy causes massive job cuts and job losses in the UK and Europe all in the name of saving on the overheads. Untill the EU markets have embargos on certain products, job losses and cuts will happen. Labour in places like China mean that you can employ a person or an entire family and pay them a monthly wage which is not more than a weeks wages in an equivalent UK job at the national minimum rate..