Chinese semiconductor industry
- Thread starter Hendrik_2000
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It’s not just STEM, it’s finance, banking and insurance as well; speaking anecdotally, these Indians shamelessly hire their own family, friends etc once they get to middle management, providing cover by sucking up to the white C-suite and then shifting all the work and hard yards to the Asian/ white workers who do all the heavy lifting.
Effectively, they are parasitically taking a paycheque and bludging, doing sweet fuck all.
The impression i get is that back in India, this is par for the course and why India will never become like one of the East Asian tigers or like China, simply because the work ethic simply isn’t there.
There’s so many theories I could name, Warner climate and laziness etc but I won’t digress from the topic.
Effectively, they are parasitically taking a paycheque and bludging, doing sweet fuck all.
The impression i get is that back in India, this is par for the course and why India will never become like one of the East Asian tigers or like China, simply because the work ethic simply isn’t there.
There’s so many theories I could name, Warner climate and laziness etc but I won’t digress from the topic.
No. There is literally no reason for any major nation to adopt the RMB until China opens its capital account (i.e. allows them to buy Chinese real estate and majority ownership of major companies with that RMB).
The PRC will likely never liberalize the capital account because that would contradict its socialist economic theory and organization. This is why even the Chinese central bankers are arguing for a basket currency like the IMF special drawing rights to replace the dollar not the RMB. You have to pay real costs to have a reserve currency.
You'll be able to buy Chinese stocks with offshore Yuan shortly.
That's not true, unless you think that Germany is not a "major nation". In 2019, Volkswagen, by far the largest carmaker in Europe, sold as many cars in China as in Germany. If China decided to pay for imported cars in RMB only, what could Volkswagen do, stop selling cars in China? Of course not. The company would take the RMBs.
And Volkswagen would enjoy the RMBs: there would be so many things they could buy from China. When the BRI (which includes most of the countries in the world) becomes an RMB zone, Volkswagen will be able to buy even more things.
Similarly for Airbus. Would they refuse to sell 320neos to China and lose trillions of RMBs? I doubt it. As Airbus and Volkswagen go, so goes the rest of Germany.
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It is nice to buy a Porsche just by printing rmb.
Perhaps Porsche can trade the printed RMBs for printed US dollars. Maybe the Germans think the US is more financially responsible than China.
Let's hope more indians are hired in the Silicon Valley so the entire US tech industry is taken down...
And why they prefer to cast a Pakistani, and not an indian, in the Squid Games. An indian won't make it pass the first game.
The restrictions on majority foreign ownership of PRC firms are still there. Even more onerous are the PRC restrictions on foreign ownership of government debt, which is IMO the most attractive PRC financial asset.
With the Euro or Dollar you can buy land, real estate, etc. In China, you only can lease land from the government and there are deep restrictions on foreigners in real estate. In addition unlike the US, China puts limits on capital outflows so you can't take the money and dip like you could in the EU or US.
Yes. They would probably just stop doing business. The fact that China hasn't already demanded that the Europeans take payment in RMB when they buy so much already is indicative that they cannot.
You also misunderstand what a reserve currency is. A reserve currency is a reserve currency not just because you can buy goods and services with it but because you can freely exchange it for real assets. With American dollars you can buy American land, companies (with only slight fuss unless you are in the Axis of Evil (tm)), real estate, government bonds, etc.
Two conditions need to be met for a currency to truly be a "reserve currency", it needs to be widely exchangeable for goods and services which the RMB meets. It also needs to be FREELY exchangeable for real assets like those I mentioned. That means that China needs to scrap capital outflow restrictions and dismantle most of its protections against foreign ownership restrictions.
I am deeply against that. The benefits of having a reserve currency are massively outweighed (for China) by the negatives (asset bubbles, disorderly capital flows, etc).
Wrong. India first needs to solve its blackout problems. You can’t produce chips if you have blackouts 5 times a week.
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