Chinese Economics Thread

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voyager1

Captain
Registered Member
manqiangrexue said:
Actually, luxury goods in China are hyper-taxed as they should be so when these youngsters buy these things, the Chinese government gets a lot of income for semiconductor and other research. I remember 10 years ago when I drove a bunch of Chinese FOB classmates to the mall to get their "essentials" and they remarked that every expensive name brand, we are talking $80 shirts, $300 shoes, etc... was so so cheap, like a quarter the price that they are in China. They marveled at these things and wanted to buy it all, while I told them that I could get 20 name brand shirts at Goodwill for $80 and every Monday was $1 day. If everyone spent money like me, China's economy would be a lot smaller. These irresponsible spenders have their place and use, but what is truly devious is when people try to use overseas shoppers to avoid the luxury tax in China thereby enriching foreigners while doing nothing for China. I hope Chinese customs catches all of them and imposes crushing penalties.
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I like China's Hainan(?) island plan for luxury spending. It will make Chinese spend their money domestically, even if it mostly flows into foreign luxury companies.

It will make Chinese authorities to have more data and transparency into the shopping habits. It can combat some foreign outflows, and start leveraging Chinese market power to influence luxury goods exporters e.g France etc.

While spending happens inside the borders the Chinese Gov would have more power and influence towards these backstabbing western countries who with one hand take China's money and with another slapping it back
 
K

Kazuo Ken

New Member
Registered Member
voyager1 said:
I like China's Hainan(?) island plan for luxury spending. It will make Chinese spend their money domestically, even if it mostly flows into foreign luxury companies.

It will make Chinese authorities to have more data and transparency into the shopping habits. It can combat some foreign outflows, and start leveraging Chinese market power to influence luxury goods exporters e.g France etc.

While spending happens inside the borders the Chinese Gov would have more power and influence towards these backstabbing western countries who with one hand take China's money and with another slapping it back
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Did these Western companies force Chinese to buy their products?
 
S

sndef888

Senior Member
Registered Member
Luxuries are a waste of human potential, and a destructive form of capital outflow. Literally paying top dollar for cheaply made goods to make westerners rich.

The best way to combat it is to shift consumers away from seeing luxuries as the goal, instead make them view helping the country as the ultimate goal. Not gonna happen easily though.
 
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PUFF_DRAGON

New Member
Registered Member
sndef888 said:
Luxuries are a waste of human potential, and a destructive form of capital outflow. Literally paying top dollar for cheaply made goods to make westerners rich.

The best way to combat it is to shift consumers away from seeing luxuries as the goal, instead make them view helping the country as the ultimate goal. Not gonna happen easily though.
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It will likely never happen since demonstrating social status is an innate part of human nature.

In a newly re-developed country like China, social status hierarchies are in flux. It's not like Britain or France where the social hierarchies have congealed around things like membership in the Grande Ecoles or Oxbridge or certain country clubs.

You see this in pretty much all rapidly developing economies. Since socio-economic status hierarchies in flux, crass materialism, particularly foreign goods ownership, is the simple and easy way to demonstrate status.
 
manqiangrexue

manqiangrexue

Brigadier
sndef888 said:
Luxuries are a waste of human potential, and a destructive form of capital outflow. Literally paying top dollar for cheaply made goods to make westerners rich.
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I would agree completely.
sndef888 said:
The best way to combat it is to shift consumers away from seeing luxuries as the goal, instead make them view helping the country as the ultimate goal. Not gonna happen easily though.
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However, because I also agree with Puff that the need to show social status is an innate human nature, I believe that the best way to combat it is to develop national luxury brands as an outlet for them to waste that money on. Then tax those luxury brands to generate income for national development.

The truth is that people work harder when they work for themselves, to enrich themselves and to achieve personal goals. They work endlessly, passionately and it drives their lives. When the goal is the collective good, people tend to rest on their laurels, thinking, "I've certainly contributed enough, way more than the average man. I deserve rest and relaxation." When something is everyone's responsibility, it becomes no one's responsibility. So successful governments don't demand their citizens to drop their personal ambitions to serve the country, but they create systems that harness the power of people working for themselves to generate resources for the common good.
 
steel21

steel21

Junior Member
Registered Member
Andy1974 said:
China simply needs to develop their own luxury brands.
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It's already started.

It start with tangible tech DJI, Huawei, Ninebot, Xiaomi, Nio, then into consumer electronics and eventually into fashion.

At this rate, they might just buy out the the like of LVMH.

It will be the post 80's generation that start the trend, and my kids generation to instill it, just as Japanese brands did in the 1980s.
 
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