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...Although it may not be evident at the local Wal-Mart yet, these forces may already be in play. Demand from China, along with other fast-growing emerging economies, has driven up the price of oil and a wide range of other commodities for the past several years. But what's really worrying many economists is the sudden appearance of relatively high inflation within China and the ripples that might cause abroad. Despite five interest-rate increases this year by China's central bank, the country's consumer price index has been stubbornly on the rise. In August, inflation climbed...

Author: /time Magazine | Title: Bloated Dragon | 10/11/2007 | See Source »

...does this mean it's inevitable that inflation will join the long list of Chinese global exports? Economists disagree. Yiping Huang, chief Asia Pacific economist for Citibank, notes in a recent research report that, while wages are rising fast in China, labor productivity is increasing even faster, which tends to limit manufacturers' need to raise prices. Standard Chartered economist Gerard Lyons says that China's move into more valuable manufactured goods such as automobiles will in years to come have the same deflationary effects on world markets as the country's push into low-end manufacturing...

Author: /time Magazine | Title: Bloated Dragon | 10/11/2007 | See Source »

...Civil Aviation Administration of China (CAAC), the country's industry regulator, announced Aug. 31 that it will block the creation of any new Chinese airlines until 2010 - unless the new carrier flies the ARJ21. All of the 71 ARJ21s sold thus far have been to Chinese carriers serving the fast-growing mainland travel market. "The government still controls fleet purchases," says Richard Pinkham, an industry analyst at the Centre for Asia-Pacific Aviation, a Singapore-based consultancy. "That will provide a big boost to marketing efforts...

Author: /time Magazine | Title: Eyes on the Skies | 10/11/2007 | See Source »

...still has to deliver a competitive airplane. The company is not starting from scratch. It has made parts for both Boeing and Airbus since the early 1980s. ACAC's Shanghai factory was named one of Boeing's best in 2005, and China's engineers have so far set a fast pace in the rollout of the ARJ21. "Staying on schedule is our biggest challenge," says chief engineer Jiang Liping. At full capacity, ACAC hopes to build 50 of the jets a year. The supply chain is state of the art. Fuselage sections are built at factories throughout China - located...

Author: /time Magazine | Title: Eyes on the Skies | 10/11/2007 | See Source »

...into the darkness toward the crowded main street of Musayyib, a ramshackle Shi'ite town set along the Euphrates River some 40 miles south of Baghdad. Robed men are gathered in clusters on benches and around tables brought out after the daily ritual of breaking the 12-hour Ramadan fast. As his platoon fans out into the shadows on both sides of the road, Vansandt strides toward the nearest knot of men beneath a sagging string of bare light bulbs, greeting them confidently with "asalaam ilikem" - peace be upon...

Author: /time Magazine | Title: On Scene: Trying to Win New Iraqi Friends | 10/11/2007 | See Source »

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