Simply saying don't need FDIs but getting them is better.
Chinese Economics Thread
- Thread starter Norfolk
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In a way but not entirely.
FDI is essential to how China developed besides simple financing. Foreign direct investment (FDI not FII which goes into equity like stocks) is how China leapfrogged up the technological ladder.
The work force that trained under the JVs in every industry from toys to PCs to autos to aircraft allowed China to moved up the development ladder far faster than any other developing country.
Tesla in Shanghai we already spoken about. But another prime example is the Airbus FAL in Tianjin. The work force, processes and standards introduced there uplifted an entire industry that will reach in a decade what we are seeing in the car industry today. Confidence to generate 1300 orders for the C919 comes from an eco-system that includes some of the best practices of the leading manufacturer in the world today.
So even if you not need the money (which is evident since China is capital excess country and invests huge amounts in the BRI alone) it is still essential to continue getting foreign investment so you do not develop in a bubble -- which the West wants to restrict you to.
Heard the words "Michael Pettis", clicked x on browser tab.
Market share is the villages, high end IP is the cities. I see Mao's strategy still apply in business.
supercat
Major
China's industrial/manufacturing sector did well in the first two months, Yellen: but at what cost?
This is a good article and things are definitely happening. The integration of Asian continent is happening at a break neck pace. Yellen and Europeans can complain as much as they want, but global south prefer cheap Chinese goods over overly priced Western goods. There is plenty of market left for China to push out Western manufacturers. And I'm talking about China Inc, not "Made in China".
The former is value added. The latter is low cost labor
Central Asia has about 1.8 million live births a year. Russia has about 1.25 million. Add Iran, Afghanistan, and Pakistan, and the entire region has over 12 million live births per year, greater than all of China, or the EU + US combined. If it can be economically developed, it would be a huge region in the future. The problem currently is lack of development, particularly in the southern portion (Iran, Afghanistan, and Pakistan).
Xinjiang is next door to Russia, Kazakhstan and Kyrgyzstan. Really makes you think huh
The strong do what they can, the weak suffer what they must.
The Chinese are investing into industrial overcapacity according to Yellen and some narratives from the usual suspects.
This is raising the white flag.
Imagine General Motors complaining that Telsa is raising the overcapacity making EVs.