Henninger's Is this the end of capitalism? (资本主义结束了吗？) & Shanghai

In an op-ed piece in today's Wall Street Journal, Daniel Henninger basically jots down everything that's going on in the world today. The U.S. failed to regulate the housing crising, France is pushing for a world regulator (IMF? who would've thought), China wants a global currency, Germany doesn't want to spend as much as the U.S. has, etc. etc. http://online.wsj.com/article/SB123862779016180329.html

Aside from this, Henninger doesn't really say anything new despite the catchy title of the piece. Just that given the current financial crisis this may allow economics to dictate politics. Meaning given the vulnerability of the U.S. right now this has created favorable conditions for what Fareed Zakaria calls "the rise of the rest" (read his Post American World) http://www.amazon.com/Post-American-World-Fareed-Zakaria/dp/0393334805/ref=sr_1_1?ie=UTF8&s=books&qid=1238662581&sr=1-1

What I do think Henniger is right on about is in the last paragraph of the piece: "I'm thinking that the two happiest G-men in London are Hu Jintao of China and Lula da Silva of Brazil. Their game is catching up with the West. It's a lot easier to play ball in the G-20 league if in the future the competition will be running in slow motion."

Yesterday's post talked about China's growing presence in Latin America, and likewise, how Brazil, as LA's major player, is continuing to grow its presence in China (just recently the first LA firm, a Brazilian firm, was given a license to practice here in Shanghai http://www.noronhaadvogados.com.br/)

I can't agree more with how Lula and Hu Jintao are savoring this moment to make their countries' influence grow.

But given that I'm currently living in Shanghai I can only really write about what I see China is doing to savor this moment, and not so much about how this is happening in Brazil.

So I'll give an example. Last night I met with my language partner who is a 30 year old financial analyst working for a local bank. She studied in Singapore and decided to come back to China because she strongly believes Shanghai is the place to be.

Between her broken English and my broken Mandarin, I learned that the Chinese government is doing all it can to promote Shanghai as the international hub for all foreign nations, U.S. notwithstanding, to do business. From allowing foreign nations to directly be in contact with banks in Shanghai and swapping currencies like with the recently announced deal with Argentina, the Chinese government wants Shanghai to be their international spotlight that attracts foreign invesment. According to Chinese officials, there's no longer a need for NYC.

It's no wonder, then, why the government is doing all it can to prepare for the 2010 World Exposition to be held in? Shanghai.

Even in Hong Kong, which traditionally was the financial hub of East Asia, there's a growing worry that its being outshadowed by its neighbor to the north. http://www.marketwatch.com/news/story/hong-kongs-eyes-look-toward/story.aspx?guid=%7BA3F46C17-51AB-43C8-B5C4-09D869AA399D%7D&dist=msr_1

So will capitalism end? Of course not.

The focal points where capital is concentrated in, though, are definitely shifting.