Chinese Economics Thread

[Overbom]

Pirelli strips China’s Sinochem of control in attempt to avert exclusion by Trump in US

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Grand Theft Auto VI
Motor Sich style

Sinochem is a SOE. Italy basically just robbed Chinese people of their money

 

[FriedRiceNSpice]

Sinochem is a SOE. Italy basically just robbed Chinese people of their money

The article simply states that Sinochem is stripped of its control over governance. There is nothing to imply that Sinochem was also divested of its ownership shares.

 

[Africablack]

The article simply states that Sinochem is stripped of its control over governance. There is nothing to imply that Sinochem was also divested of its ownership shares.

Make no mistake, they'll use every means to frustrate Sinochem into selling its stake and leaving all together. People should know how westerners act by now. Like the article quoted it's "a first, but not decisive, step".

 

[Overbom]

The article simply states that Sinochem is stripped of its control over governance. There is nothing to imply that Sinochem was also divested of its ownership shares.

Stripped of ownership is theft, period.
You have your money, but you cannot control how you use or what to do with them lol.

Who knows, maybe current management is retarded and due to these shenanigans with no input allowed by Sinochem, company could lose value in the future (translation: lose money)

And I bet you that Sinochem paid a hefty premium to get so many shares in such a company

 

[Jamie28]

Who knows, maybe current management is retarded and due to these shenanigans with no input allowed by Sinochem, company could lose value in the future (translation: lose money)

Actually the CEO and second shareholder is still Marco Tronchetti Provera who sold the 37% of shares to Sinochem when Pirelli was on the verge of bankruptcy

 

[FriedRiceNSpice]

Make no mistake, they'll use every means to frustrate Sinochem into selling its stake and leaving all together. People should know how westerners act by now. Like the article quoted it's "a first, but not decisive, step".

In the case Sinochem would need to be paid market value for their shares, so the claim that it is "robbing money from the Chinese people," does not hold up.

 

[FriedRiceNSpice]

Stripped of ownership is theft, period.
You have your money, but you cannot control how you use or what to do with them lol.

Who knows, maybe current management is retarded and due to these shenanigans with no input allowed by Sinochem, company could lose value in the future (translation: lose money)

And I bet you that Sinochem paid a hefty premium to get so many shares in such a company

You can decide to sell or hold your shares. By choosing to hold, you are accepting the risk that you may lose money. Additionally, there is nothing to suggest that Sinochem was also stripped of its rights to exercise its voting rights as a regular shareholder.

 

[GulfLander]

China passes private sector law, addressing gripes of beleaguered businesses

As China’s first law focused on promoting the private sector, it stipulates measures to promote fair market competition, encourage the involvement of private firms in scientific and technological projects, and safeguard their economic rights and interests, according to state media reports. The full text of the legislation has yet to be published.

“There are still difficult issues and choke points such as market access, unpaid debts owed to private enterprises, financing barriers, as well as protecting the rights of entrepreneurs,” Li said. “To tackle these, we need more vigorous coordination to strengthen implementation supervision [of the law].” Tang Dajie, a senior researcher with the China Enterprise Institute think tank in Beijing, said a key provision in the law was a measure aimed at preventing local authorities from unfairly targeting private businesses – so-called “profit-driven” law enforcement.

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....

China NPC Standing Committee passed Private Economy Promotion Law, effective May 20
One key focus this law is to resolve extensive problems on outstanding account receivable (AR) and the financial problems private enterprises face when dealing with large companies domestically and globally. It requires county level or above govt to protect private companies on their ability to collect AR.
This could have major ramifications on traditional western companies practice of vendor financing (up to 270 days terms)

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[fishrubber99]

Caixin manufacturing PMI and Official NBS PMI figures for April were just released, every figure except the NBS manufacturing index was in expansion territory.



ING financial analysis article about this:

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[GOODTREE]

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....

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The 46th Order of the President of China​

Law of the People's Republic of China on Promoting the Private Sector Economy was adopted at the 15th Session of the Standing Committee of the 14th National People's Congress of the People's Republic of China on April 30, 2025. It is hereby promulgated and shall come into effect on May 20, 2025.

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ps: “Law of the People's Republic of China on Promoting the Private Sector Economy” is my personal translation, if there is an official translation after that please refer to the official translation version.

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