Chinese Economics Thread


Overbom

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Unexpected. Bold move by Caixin low-key criticising the economic policies/slow reforms/heavy and sometimes low regulations. There are a lot of good points and proposals in the article. It is worth a read

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Government departments at all levels need to focus on private enterprises’ long-standing problems. They will need to press ahead with reforms to streamline administration, delegate power and improve government services. They will also need to optimize the business environment, reduce institutional transaction costs and protect property and intellectual property rights and fair competition. In addition to offering precise and effective macroeconomic policies, it is even more important to follow the principle of competitive neutrality and ownership neutrality and further reform state-owned enterprises to create a suitable institutional mechanism and legal environment for entrepreneurial success.
Governments at all levels should effectively communicate with private enterprises by responding to their concerns and answering their questions promptly and directly. Reassurance is necessary, but in the future, we hope that private companies will be able to develop safely without it.
 

steel21

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If that was the goal, a much easier path would simply be to force them to delist or prohibit foreigners from owning a majority stake. Besides, China allows actual US internet giants like Google to have a big market share in China, with Chrome browser. If it really cared so much about foreign control it would go after these foreign companies like Google, Microsoft and Apple that operate in China first.

I don't think China is really in the business of driving out foreign influence.

Even if domestication in the long term is a goal, continued coupling with Western business interests, and US in particular is crucial during this critical inflection period. Once US economical power fade, so will its technological edge, and eventually Chinese companies will take the lead. It is all the macro game of capital and investments. There is no innovation without capital, and there is no capital without markets.

Shit, there might even come a day 50 years from now that Microsoft becomes a China domiciled company.

The role of government is not to flip the switches but acting as the giant strategic hand steadily guiding towards the future.

Besides, you can't easily unwind and delist foreign equity. Each business transaction is alike a legal proceeding, that is why it's called a "closing". Each deal is like a snap shot in time. You can't unwind a deal without mucking up the host economy and any innovation/developments underway. Imagine unwinding a polygamist clan marriage and you get some idea of which wife leaves with what goods/accesses. It is a total mess.
 

Strangelove

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@DarkStar bro its a love hate relationship, love your cheap product but hate you for letting me buy it....LOL . They can't made a decision cause without the Chinese they'll be living a life of poverty instead of a life of plenty.

Exactly bro, the cheap and plentiful China-made fentanyl and sex toys keep them happy, with cheap being ever more important as most merikkkans are racing towards the poverty line.
 

ChongqingHotPot92

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Unexpected. Bold move by Caixin low-key criticising the economic policies/slow reforms/heavy and sometimes low regulations. There are a lot of good points and proposals in the article. It is worth a read

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It is another example how the Xi administration is NOT about to destroy market economy and private industries. The lefties in China definitely have their privileges in publishing radical communist arguments (such as the 2018 article calling for an end to private industries), but Xi and Liu He would have none of that. As Liu said, private industries in China contribute more than 80% of employment in China, which is key in maintaining social stability and solidifying CCP's legitimacy. In other words, the CCP's legitimacy is now tied to the success of the majority of private firms in China. Yes, the Three Represents is over, meaning big private entrepreneurs no longer will have their privileges like they did in the 1990s and early 2000s, but calling for a more fair distribution of wealth does not equal to an end to private enterprises.
 

DarkStar

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WASHINGTON ― Researchers at the Pentagon have launched a project that aims to extract
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from domestic sources ― using microscopic bugs.

The potentially revolutionary biotechnology doesn’t exist yet, but the Defense Advanced Research Projects Agency wants to develop it as a step toward ending American dependence on China,
Step back everyone, the Americans are gonna rely on fantasy fic make believe tech to get one over the Chinese!!

Wonder why they didn’t just go with Mithril and Vibranium this time.

anyway, all this media attention on rare earths has me thinking China might start to use that as a weapon against US tech companies
 

ChongqingHotPot92

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Step back everyone, the Americans are gonna rely on fantasy fic make believe tech to get one over the Chinese!!

Wonder why they didn’t just go with Mithril and Vibranium this time.

anyway, all this media attention on rare earths has me thinking China might start to use that as a weapon against US tech companies
don't they still have to be sent to China for processing?
 

getready

Junior Member
I'm curious too. It's not only extraction but also the processing tech that only China possess. I read some countries maybe able to do it but at far higher cost and much less efficient and more damaging to the environment that makes it not worth it.
 

weig2000

Senior Member
(@Orthan for your personal study and reflection. Btw, the author is not pro-China.)

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The archived version
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.

------------------------------------------------------------------------------------------------
William Bratton is author of "China's Rise, Asia's Decline." He was previously head of equity research, Asia-Pacific, at HSBC.

China's current regulatory crackdown may have focused attention on its technology and service sectors, but this should not distract from the continued robust performance of the country's other growth driver: its hypercompetitive manufacturing industries.

For despite all the apparent headwinds faced by Chinese manufacturers, including much chatter about the need to reduce the dependency of global supply chains on the country, the aggregate data available demonstrates not only their persistent resilience but, more importantly, their growing competitiveness.

This is most visible in the country's continued strong trade performance. It is true that the pandemic has complicated international comparisons, but in contrast with most of its economic competitors, China successfully grew its manufactured trade over the last two difficult years. This resulted in its share of global manufactured exports surging to a new 20% high in 2020, significantly higher than Germany's 9%, the U.S.'s 7% or Japan's 4%.

The world has not seen such clear manufacturing leadership since the U.S.'s post-World War II primacy. And China's momentum is showing little signs of slowing. There are some examples of internationally orientated low-margin production shifting out of the country, but such anecdotes do not make factual trends and they should not distract from the underlying reality of China's unprecedented manufacturing competitiveness.

...
 

ZeEa5KPul

Senior Member
Registered Member
(@Orthan for your personal study and reflection. Btw, the author is not pro-China.)

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The archived version
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.

------------------------------------------------------------------------------------------------
William Bratton is author of "China's Rise, Asia's Decline." He was previously head of equity research, Asia-Pacific, at HSBC.

China's current regulatory crackdown may have focused attention on its technology and service sectors, but this should not distract from the continued robust performance of the country's other growth driver: its hypercompetitive manufacturing industries.

For despite all the apparent headwinds faced by Chinese manufacturers, including much chatter about the need to reduce the dependency of global supply chains on the country, the aggregate data available demonstrates not only their persistent resilience but, more importantly, their growing competitiveness.

This is most visible in the country's continued strong trade performance. It is true that the pandemic has complicated international comparisons, but in contrast with most of its economic competitors, China successfully grew its manufactured trade over the last two difficult years. This resulted in its share of global manufactured exports surging to a new 20% high in 2020, significantly higher than Germany's 9%, the U.S.'s 7% or Japan's 4%.

The world has not seen such clear manufacturing leadership since the U.S.'s post-World War II primacy. And China's momentum is showing little signs of slowing. There are some examples of internationally orientated low-margin production shifting out of the country, but such anecdotes do not make factual trends and they should not distract from the underlying reality of China's unprecedented manufacturing competitiveness.

...
@Orthan what do you think?

Bloomberg -- Are you a robot?
 

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