China Weighs in
...and  tips the economic scales right here in the Northeast.  Ripple effect hit U.S.

When a Chinese steel plant fires up a blast furnace, do we feel the heat here in the United States? Economically speaking, in today’s world the answer is probably yes.

That’s because China has undergone a process of industrialization­ which has transformed that nation — of more than one billion — into one of the world’s most influential economies.

The fact is China's expanding economy has been growing at an astonishing 10 percent annual rate for decades.  The pace and size of development have been so rapid and immense that even those of involved in Northeast agriculture are closely watching the rise of this eastern giant and feeling its ripple effect in much of shat we do.

So how exactly can a country almost 7,000 miles away influence agriculture in the northeastern United States?

The answer is simple.  It is basic arithmetic is today's global economy.

First, China has a population of more than 1.3 billion people — that’s almost 4.5 times the population of the United States. With China’s booming economy, many Chinese (particularly the urban population) have disposable income to spend on consumer products. It should come as no surprise that spending growth in China impacts economic activity elsewhere — including here in the Northeast. Take four key commodities, for example: food, fuel, fertilizer and steel. Increased Chinese demand in these areas almost invariably increases the prices that Northeast farm businesses (and others throughout the world) pay for these commodities.

Rest of the article plus:

• Dairy consumption worldwide

• Why we're paying more attention China today

• China Travel Log - a Vermont delegation visits China

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