World Economics Thread


Propagandalass

New Member
Oh, TL;DR

=> My bad.

I lack a bit/some/a lot seriousness in handling things. But I promise to make up the rest with Propaganda.
 
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Player 0

Junior Member
So Australia chooses to suffer economic setbacks because of "strategic interests"? Is that really something people should be thinking about at this point?

Well yes, Rio Tonto is a major mining company and allowing Chinalco to go ahead with this deal gives them majority ownership. As this company is very important to Australia's economy, in the long term it isn't wise to just sell it for short term gain.

Just saying this is something that all nations should do, and do very often, you always have to expect a certain level of protectionism in international commerce.
 

bladerunner

Banned Idiot
Australian TV has been playing the anti-Chinalco ad for a few weeks now. And I'd say most people didn't care as they didn't know, but now most Aussies care and don't want more Chinese interests in Australia anymore. The ad quoted an interesting thing "we should sell the milk, not the cow" Rio Tinto is a small but powerful company in Australia, it is of high strategic importance to Australia and if that company is controlled by a Chinese government company, its not really good for that industry, the workers and society as a whole. As the Chinese government has different views on how to manage the company, which may not take into account Aussie views.[/QUOTE

This illustrate the point, that its not going to plain sailing for China, on its way to economic super power status anyway.
 

RedMercury

Junior Member
Laugh, Poland, the same country that is about to collapse from currency speculation attacks and unpayable household mortgage debt? Another wave the flag propaganda piece.

As for Rio Tinto, the lesson China and Chinese will learn is that free trade is an illusion, the existing international order exists to benefit those already with money and power, it is not free at all. I hope they will remember the hypocrisy next time an Australian company wants to buy a stake in a Chinese one, or when they consider going there for education or tourism.
 

bladerunner

Banned Idiot
As for Rio Tinto said:
The Chinese already have a 9% stake in Rio Tinto, its just that other stake holders cried foul, in the manner China was given preference to increase its stake.
I think China does block foreign acquisition of certain industriesin its own country as well.eg banking services?
 
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getready

Junior Member
Well yes, Rio Tonto is a major mining company and allowing Chinalco to go ahead with this deal gives them majority ownership. As this company is very important to Australia's economy, in the long term it isn't wise to just sell it for short term gain.

Just saying this is something that all nations should do, and do very often, you always have to expect a certain level of protectionism in international commerce.
-not majority ownership, deal would have doubled Chinalco's Rio stake to 18% from 9%.

-it would secure for Chinalco a source of raw material in return for investing $7.2 billion in convertible bonds and $12.3 billion in Rio Tinto iron ore, copper and aluminum stakes

-and reduce the heavy debt load of the world's third-biggest mining company.

-you are right that there is always some level ofprotectionism and xenophobia towards foriegners in most countries,

-when the sale of aus second-biggest telecommunications company Optus to singapore government controlled SINGAPORE Telecommunications went through there was some nasty outcry too

-anyway, we don't want to anger the chinese too much, our mining industry and overall economy benifitted greatly from the chinese economic boom in paast years, good relations with them are vital to our interests.

-even amid the global downturn, sales of goods and commodities to China increased 37% last year.

-but i do anticipate the chinese investing more of their cash to brazil now and other countries to help build their undeveloped mines

-anyway, we got other problems to deal with at the moment like the indians repeatedly badmouthing us in their press after the racist attacks on foreign students in oz and the h1n1 flu crisis
 

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