GDP and GNP /Carlos Pueblo

GDP and GNP /Carlos Pueblo

GDP numbers of China have been mentioned all the time during the seminar

of Taiwan, China, and the United States Triangular Relations in Houston, Texas.

Chinese media likes to emphasize that China is #2 in the world and going to

supersede the U.S. as number 1 in the world GDP rank very soon. This is one of

its justification of the territory demand of Taiwan. GDP, the gross domestic

product, is a type of measurement in Economic for the total of governmental

output as well as non-governmental output per year if add on the international

trade numbers becomes GNP, the gross national product. Indeed Chinese GDP

is number 2, India is number 6, and Taiwan is number 22 for the moment;

however, it is not a measurement of the wealth of a nation, just product and

that is all. If we consider GNP per capita, means GNP divided by the national

population which is still not exactly representing the wealth of individual citizen

yet better picture of the income level of its citizen. China is way down to the

list of nations, way behind of Taiwan and Taiwanese like to ask why should I go

under Chinese rule? Hong Kong has the same question now.

The international capitals have been invested in China to build factories to

manufacture all kinds of goods to export to the rest of the world. The owner of

the factory must exchange the foreign currency into Chinese currency according

to the book which I read some 30 years ago by a British journalist of Hong Kong

South China Morning Post. China was still a nation under the U.N. definition of

hunger nations and accepted the food subsidy from the U.N. In order to maintain

the stability of Chinese currency, Chinese government have purchased huge amount

of U.S. Government Security, i.e. 30 years Treasury with a minimum interest. Professor

Chen did mention such free money loan to the U.S. was finally gotten rid of by Germany

in the early 90’s. Germany can put her interest priority to German Nation and China and

Taiwan still be unable to. I asked him who owned such huge amount of foreign currency,

and he hesitated for a moment and agreed that the foreign factory owners. One of my

lady client, Mrs. Lee of Houston disagreed. She said since Chinese government exchanged

the foreign currencies with Chinese currency to the factory owners Chinese Government

was the owner indeed, of course, Chinese government has the obligation according to

the western capitalism, Chinese currency must be valid. I still doubt that Chinese government

is the real owner.

I ask my dear readers, who own the great wealth of Chinese boom? If China is so rich, how come

most Chinese are so poor? Can we trust you to rule Taiwan if you still have problems in China?