At the pace that China's minting new billionaires, I wouldn't worry about them. Plus, if it's something that's been on the decline (or collapse, whatever that means as written by someone who calls every diplomatic word exchange an unmitigated disaster) since 2011, then seeing China's growth in these 9 years, I'm confident everything will be more than ok.
That was a pretty article, will read it again later, only skimmed a few paragraphs.
State sector is not inherently bad. The private sector for numerous critical industries is not suitable. Such as railroads: just look at Britain's failing privatized railway system. Rabid capitalism and privatisation is no good, because the pursuit of profits will hold back certain areas of the economy, such as in the sphere of public goods.
Somebody from Xinhua doubted WSJ's translation
Haha! That is correct. The Wall Street Journal translation was backwards.
Incidentally, I discover this gem today.Haha! That is correct. The Wall Street Journal translation was backwards.
Must establish, core competencies, to compete in the market.
That is closer to what Lui He was saying about the state sector.
I remember we have sinodefence's own GDP estimation back then. How is it compared to this study?Think of the principle concepts involved.
The medium of exchange, we can use gold, silver, or US Dollars for example.
But with US Dollars, going through the US banking system, those transactions can be sanctioned.
Therefore, if we do not want our transactions potential sanctioned, do not use US Dollars.
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That sentence that we find interesting, my opinion is that it is false. It is just sugarcoating it, that there is no effect, as of today I would believe.
Consider this. Suppose Iran telecom companies buys some Huawei equipment. Huawei would have some sort of office in Iran. The telecom company pays Huawei office in Iran with Iranian rial, suppose it is a check. Now that money is in Huawei Iranian bank account in rial.
Next, they should just exchange rial into RMB. Then the RMB leaves the country, via the DCEP or WeChat. No US Dollars are involved in this transaction.
DCEP and WeChat already operational, just the DCEP working out the details.
Mass adaptation has not happened for DCEP yet, but look how fast China went cashless as a society.
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Longer term, this is where the complicated parts are as they are rooted in history and the current system, the role of the US Dollar will change.
What does that mean, that is hard to say.
For example, the trade deal RCEP, in the long run they probably will not use dollars in that block. The EU, most of their trade is not in dollars inside the Euro block, it would be in Euros.
The Americans do not want to talk about this.
China should join the TPP quickly, and that trading bloc will use less $US as well.
I have read the entire article and I strongly disagree with this statement:
Tsinghua Semi should go bankrupt if they can't pay. Then their talents and marketshare will simply flow to their rivals to create true champions. Instead of throwing good money after bad supporting unprofitable companies. You need a little bit of darwinism here.