Chinese Economics Thread

Skywatcher

Captain
Seriously, Chinese government debts are predominantly internal debts (rmb denominated). Why does this "somewhat" come from?
China also has an out for state owned debt (it's pretty much a one off deal only): sell SOE shares (somewhere between 20-40% of the shares in each SOE).

Obviously, it's only a one time thing (for economic and political reasons).
 

voyager1

Captain
Registered Member
China also has an out for state owned debt (it's pretty much a one off deal only): sell SOE shares (somewhere between 20-40% of the shares in each SOE).

Obviously, it's only a one time thing (for economic and political reasons).
Has China said anything about reforming SOE and introducing more market dynamics in their structure?
Various studies have shown that the SOE chronically underperform in technology, R&D and they are not flexible to new opportunities
 

voyager1

Captain
Registered Member
Depends on the SOE in question.
On average SOE are lagging private businesses. Here the most recent study from the end of 2016. Note, that this is not considered old as their finding share similar finding from 25 years ago..

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By analyzing stock market data and annual reports of 1,900 Chinese firms between 2001 and 2011,
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show the negative drag SOEs have on Chinese innovation. After classifying firms by their ownership structure, they find that as a share of revenue, SOEs invest 0.57 percent into R&D, while private firms invest 0.95 percent into R&D. In other words, private firms are 67 percent more R&D intensive than SOEs.

Private firms are not only more R&D intensive than SOEs, they too are better able to translate these R&D investments into productivity growth. Every 1¥ invested in R&D by a private firm returned an additional 0.16¥ in output, while every 1¥ invested in R&D by a SOE returned an additional 0.12¥ in output—
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.

China’s own experience with privatizing some SOEs since joining the WTO in 2001 should give them even more reason to fully embrace market-based economic trade policies. A separate
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covering firm data between 1990 and 2013 shows that, on average, when a SOE switched to private ownership, R&D as a share of net assets doubled, or an increase of 0.14 percentage points. This surge in innovative activity also explains why patenting increased by 7.2 percent, which was accompanied by high-quality patents and more collaborative R&D with international companies.
 

AssassinsMace

Lieutenant General
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How can the movies Hollywood makes about China don't do well in China? That's the difference from being conquered by the West and not being conquered by the West. People don't think about this because it seems so innocuous but this is the crux of why they have to force Chinese to embrace Western values. They think their portrayal of Chinese would have to be superior and therefore attract Chinese to do watch thus that's how they make money from Western supremacy. Hollywood doesn't like how the average Chinese movie makes more money in China in US dollars than what the average American movie makes in the US and Canada. That's money they should be getting. It's just like what happened in Alaska last week between the US and China. The US thinks their view of the world is the only true universal interpretation and they get upset when others don't see it their way. When Ang Lee directed his first American movie, The Ice Storm, he was attacked by critics for how he portrayed Americans. The movie was based off a book written by an American about Americans. They had a problem with an Asian making a movie about Americans... They want to gear China to where they give Americans money for basically nothing. And they somehow want everyone to believe they against slavery. It's just a "high-tech" version of slavery where they just don't call it what is and it's not it. That's all it takes for them to spin it's not slavery.
 

Nutrient

Junior Member
Registered Member
seems like the US is now looking to finance piracy to harass Chinese merchant ships :rolleyes:

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How can a pirate last long? I'm no expert, but even I can see that a ship about to be robbed would be able to radio for help, and then a Chinese warplane would come quickly. Then torpedos and/or missiles fired by the plane would sink the pirate ship. Wouldn't a pirate have a very short and very hazardous career?
 

hashtagpls

Senior Member
Registered Member
How can a pirate last long? I'm no expert, but even I can see that a ship about to be robbed would be able to radio for help, and then a Chinese warplane would come quickly. Then torpedos and/or missiles fired by the plane would sink the pirate ship. Wouldn't a pirate have a very short and very hazardous career?
More to the point, China could use interpol and global police agencies to arrest US politicians and "think tankers" who had a hand in international piracy. Not to mention global sanctions.

Seems like the "think tanks" who come up with this shit spend more time playing computer games than dealing with reality.
 
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