Most people have triggered a lot of thoughts about a global shift of power and the main question is: who is going to become the new great power? Americans believe China to be more economically powerful, whereas the Chinese think America is.
As seen by many economists, since 2000 the rise of the Asian economies has shown that family-owned conglomerates are adequately equipped to advance capitalism's geographical frontier. Actually, China has seen its share of world GDP rise sharply from just 1.8% in 1991 and, at the moment, its economy is growing at a pace of about 8%. The reason is that the more advanced countries of the Eastern Asia production system, such as Singapore, Japan, South Korea and Taiwan, send their advanced technology to China, where the labor force to assemble goods is cheap. And U.S. corporations do the same. Consequently, Chinese factories assemble and send their final products out of the country.
In this perspective, transnational institutions can shift their outsorcing from China to some other low-wage countries whenever they want. For instance, Malaysia, Indonesia and Thailand are other Eastern Asia low-wage countries. As mentioned by Noan Chomsky, Emeritus professor at the MIT, in Cambridge, Massachusetts, that's why "China's economic growth is a bit of a mith", although since 2005 the Asia's giant has been holding two third of U.S. national debt (a few year ago Japan held most of the U.S. debt, now surpassed by China). As long as the CEOs who manage transnational capital are happy to have very cheap labor in China, the economic growth of the Asian giant will continue.
It's easy to see that the global power is in the hands of financial institution and multinationals.
