China gains a lot more resources in trade because of their huge surplus. Attacking foreign companies and starting a trade war would be worse for China
Chinese Economics Thread
- Thread starter Norfolk
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Impossible to justify during peacetime.
I agree. I do not think it's appropriate to attack companies making their ends meet on Chinese money. The balance is still far in favour of China despite the frankly unfortunate waste of 100s of billions of USD Chinese consumers donate to those luxury makers. It absolutely is a cycle that feeds the machine which has a mechanism that still favours China because it allows China to extract some western abilities which would be degraded if not for the way the current system functions. At some point in the short to medium future, this advantage diminishes to an insignificant degree but it isn't purely an economic question. Chinese will have to undergo some cultural changes before China is able to completely be independent of western technologies and the cultural attitudes that promote the development of those technologies which China has yet not become able to master itself.
Go back 10-20 years and that list was exponentially larger i.e. almost all of the high tech and academics field. Today, it is some lithography tech, material tech (even arguable nowadays), and small niche fields where western cultural attitudes simply allow for greater tolerance of risk and exploration (half an economic problem). That's literally it. But it should be noted that these small niche fields is often where the next important thing is. China sort of lacks this vision and daring which only come with economic wealth, social safety nets, and cultural attitudes evolving after some delay when the first two are well and truly grounded in a society.
Honestly foriegn luxury is only the symptom. The cause is culture. If not managed, this could be the downfall of the country. Unlike other fake news claims. Society must fight culture of wasting and valuing worthless products to show off. 20 years later when US cease to be a threat, our own moral downfall would start eating us, in a way parallel to US.
this should be copied to demographics thread since I suspect that a major cause of fertility issues is this mentality. Back even in the 1990's and early 2000's, with much less regulation on the market, higher crime and poorer social safety net than either before or today, China still had a huge fertility potential. Yet today it is not the case.
You can't have completely one sided trade with China only exporting and Europe only importing. Total Chinese exports would be much lower without corresponding imports. Imports from the EU protect China from protectionism in the EU
Trading luxury goods imports for the deindustrialization of western economies is an amazing trade. If you need to import anything, it should be luxury goods and raw materials. Never import any mass market manufactured goods or high tech
“Luxury” imports are founded on the perception that Western products are more prestigious and so inevitably reflect West worship, which China does not and should not want. The long term goal should be to import only raw materials and exotic cultural crafts.
Contrary to popular belief, the primary beneficiaries of more trade is capital owners, not “economic efficiency”; nations do not fundamentally care about global economic efficiency, and indeed may be hurt by it. But do you know who always benefits? The financiers.
Contrary to popular belief, the primary beneficiaries of more trade is capital owners, not “economic efficiency”; nations do not fundamentally care about global economic efficiency, and indeed may be hurt by it. But do you know who always benefits? The financiers.
The tragicomedy is that their zombified populations are legit thinking that "decoupling" and trade wars, which destructive politicians there use to score stupid propaganda points, with China will get them something other than inflation (or in the extreme case- hyperinflation), or more.
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If they decouple it means they rug pull themselves into middle or lower income status.The tragicomedy is that their zombified populations are legit thinking that "decoupling" and trade wars, which destructive politicians there use to score stupid propaganda points, with China will get them something other than inflation (or in the extreme case- hyperinflation), or more.
Maybe that is the more face saving tactic then to allow China to do the rug pulling.
Precisely. You may trace the issue with France too. In industrial era Europeans had population boon. Not France. Why? Was France entirely unsuccesful? No, it was a dominant power, just less than Napoleonic times. France had low birth rate since before revolution. Therefore it is not the economy. It is the cultural attitude. You will see a reduction in birth rate in other countries adopting liberal individualistic cultures. Those are against family values. There is a direct correlation, likely causal.
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Engaging in hot conflict against a country that provides you the majority of your intermediate, capital, and consumer goods (including your military), almost certainly means hyperinflation, and when a country has socio-political inner divisions and polarization on the level of the US, this has to also mean disintegration. To be honest, I see maybe a 5% chance that the United States itself could continue to exist if a hot war between China and the US emerges.