By : Iman Sjahputra, SH, SpN, LL.M

The China’s economic expansion should not be looked with single eye. China “the world power” is not empty statement. Its products have been circulated worldwide. Let see how China’s the big companies such as Sinopec, an oil refinery company; Shanghai China, auto giant company and Haier, equipment giant company have spread their wings to many parts of the world and are trying to acquire other foreign companies in the field of Oil and gas, coal mining, automobile, property. The aims would be to conquer the world economically and financially. Many people thought that with its economic growth rate of 8% this year, China would be able to make the country to become stabile although the recession in global economic has hit the world. It is necessary to remember, within the last two years the China’s government has drop the fund at the amount of $586 (Five hundred eighty six) billion US Dollar in the policy program stimulus. At the end the stimulus program has made the economic grew very significantly.

The factories which used to be thought will be bankrupt, can now breath again. The Development here and there still continuees. The new project are still be poured. China’s people is asked by the government to do the shopping; the selling of subsidized car is recommendable so that the China people willing to buy and used their self made car.

And the retail sales also has been growing up to 16% yearly. No wonder that we found the community packed the hyper market; department store; markets for their every day need. The China policy in facing the world economical recession is really incredible. The budget which is dropped to the economical sector has successfully made the China’s economy wriggle and instantly expansive. Lets compare to other countries such as the USA which is still crawling and try to find the solution to get out of the economic/and financial crisis. With the prices of properties/homes down, the stock exchanges dropped and banks bankrupt. With unemployment rate which reached 9 (nine) percent, it is predicted that the USA economy can slow down into contraction up to 2.5 percent more at the end of the year.

This situation would need the help from other countries.

With the debt of the USA to China in the form of bond amounting to US$ 763,5 billions and the China’s intention to buy the bond from the IMF (International Monetary Fund) at the amount of US$ 50 billions, may be the world economy especially hat of the USA can be saved. And even China who want to stabilize Renminbi exchange rate, as if it does not want to depend on the foreign exchanges (US dollars) for its export transaction, therefore the China’s financial can be managed better.

Can this policy can be reached and the world economy be saved with the China’s role/play? Or would the China become the saver of the world economy? There are many who are pessimistic. The reason is that China is still categorized as a developing country which is still trying to fix itself. With the income of US$ 6.000 (six thousand US Dollar) per capita per year compared to the USA of US$ 39,000 and the EUROPE US$ 33,400 per year, that can be said that its population are still live in under poverty line.

 We can see that in big cities such as in Beijing, Shanghai, Guangzhou; Shenzhen there are plenty luxury vehicles such as Mercy, BMW; VW running; the high rise buildings which as if it cracking the sky; hypermarket, and department stores which are very busy. However all that pictures can not be used as people’s welfare indicator. All of that are only on the outset look and the wealthy and richness will be felt only by a little number of the China’s elite. Most of the people are still under poverty line.

China has to chase its enhance towards the USA, Japan, including Europe. Although it is predicted that its value of export commodity value manufacture goods exceed Japan, however it is not a guarantee that the life in the country with one billion people could equate that of welfare of the American which is a developed country. More over with the intern problem and the political hassle such as the problem of Urunqi separatist in Xin Qiang, Tibet Dalai Lama, which is pro the independence and got the support from international which may be able to cause to explode accidentally. The issue of separatist and dissent still become a monster for China and needs to be solved with a calm heart. The Development of China without being followed by political stability can be not a fortune. Isn’t it?

* The writer is a lawyer in Jakarta.