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The tertiary effects of China's rise

"To Supply China, South African Mines Want More Trains," by Nicole Itano, New York Times, 21 December 2004, p. W1.

China's enormous demand for raw materials can not only revive or reshape such commodity markets around the world, it can also lead to significant growth in infrastructure for these suppliers.


For example, last year China pulled in 157 million tons or iron ore, and next year that number is expected to top 200. Meanwhile, South Africa, a global giant in iron ore, is losing market share. Why? They simply can't access enough rail infrastructure to keep pace. So Australia and Brazil capture larger market shares over time.


Obviously, when South Africa builds up its transportation infrastructure, the entire economy as a whole benefits, meaning China is not just creating trade connectivity, but infrastructural connectivity as well. So our demand for Chinese goods drives China's demand for iron ore drives South Africa's demand for rail infrastructure drives growing connectivity for Africa as a whole.


Tell me that doesn't beat foreign aid. Tell me that doesn't mean that China, as well as South Africa, are key components and thus allies in any American-led strategy to shrink the Gap and—by doing so—win a global war on terrorism.


War within the context of everything else. . ..

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