Morgan Stanley

Well said!

Morgan Stanley: "Contrary to widespread impressions, China’s export surge is not an outgrowth of aggressive market-share penetration by rapidly growing indigenous Chinese companies. To the contrary, the bulk of the export surge has been dominated by Chinese subsidiaries of global multinational corporations and cross-border joint-venture operations. Over the past 11 years, the dollar volume of Chinese exports has increased by an astonishing 6.5 times, from US$91.7 billion in 1993 to US$593.4 billion in 2004. Yet fully 62% of that increase has been driven by what the Chinese call foreign-invested enterprises -- offshore Chinese outposts of foreign companies and investors from Europe, Japan, elsewhere in Asia, and yes, even the US. Who is the New China? These numbers suggest that China’s so-called export prowess is traceable more to “us” in the West than it is to them. This is not a conclusion that resonates with US politicians. I have made this point repeatedly in congressional testimony in Washington, and it almost always falls on deaf ears."