Understanding China


#441

its the subsidised exports that hurt people, all done to keep some industry with massive overcapacity happy and for the gov to keep collecting USD.
China already had taxes on most imports to stop others from doing it.
Now they are having a hissy fit when being called out


#442

Chinese policy has shifted from encouraging export by tax incentives towards encouraging production for domestic consumption. Here is an official statement from US Trade Representative from 2016 that confirm that:
https://ustr.gov/about-us/policy-offices/press-office/press-releases/2016/april/chinese-export-subsidies-under

It is also Chinese policy to move up the value added chain in manufacturing, from cheap goods for foreign consumers to hightech products, AI and R&D.
It is the natural progression of development that has been followed by many countries around the world, incl. USA. Here is an article in SCMP from 2015 on this change in policy:

And for those who are interested in actual knowledge about Chinese economic growth here is an article by World Economic Forum from 2016:


And some thoughts about it’s future economic development by Ian Bremmer from Time Magazine, Nov. 2017:

And while we are at it; “10 astonishing facts to help you understand China today”:


#443

The thing to remember is China has a PLAN. They have a long range manufacturing strategic plan and a long range economic plan. The USA has neither nor does the EU. A former president of the USA was roundly criticized for “bailing out” the US auto industry but received little condemnation for bailing out the banks that nearly plunged the world into a depression in 2009. While the USA isolates itself from other countries, except militarily, China is happy to fill the void while the USA spends itself down the rabbit hole with military spending. The USA has a military presence in 150 different countries and is fighting wars all over the Middle East and Africa either openly or by proxy, creating massive migration problems other countries have to deal with. There is not even a strategic USA military plan as the war in Afghanistan has been going on for 17 years with no end in sight. While the USA repeats the mistakes of failed empires past China steps into the void building port facilities, airports, hydroelectric plants and roads in other countries all over the world. I am not a fan of the government in China but at least they have plan for economic expansion and international influence.


#444

The US instigated trade war with China is having effects way outside it’s intended target and purpose (Assuming that there are such a thing):

The owners of VLCCs are already feeling the pinch by low rates and restrictions on Iranian crude export due to another Trump action.


#445

Yet somebody see opportunities in the VLCC market:


#446

I couldn’t have said it better.


#447

wait till all those lunatics around the world get jealous of China and then hence blaming them for their woes.
Once they get that status they will have become an equal of the USA

The USA just gave money to lots of countries, China has done deals that have locked them in debt traps forever, so maybe China will get to favorite hated nation status sooner than we think.


#448

Yes for China to keep a lid on internal issues now that the export business is slowing up and lots of factories and cities have either never been opened or are closing is to get the locals to spend.
They have to overcome the issue of huge factories using cheap manual labour to automation in a very short time in an attempt to continue to compete with rising manufacturing costs.
They closed the door on all those shifting billions out
now they are slowly removing cash internally. My guess is they will change the money to widgets for internal use at the flick of a switch to ensure 100% control on debt and reserves


#449

The US views BRI as a threat to US dominance in the world, while others may have a different view.
China invest in infrastructure by direct investment by Chinese companies, loans by Chinese banks and grants by the Chinese Government.
Of course they expect something in return, both in the form of profit and political support. They don’t meddle in internal affairs in the countries involved though, nor do they demand allegiance to the Chinese system of government.

Here is an article in Splash 24/7 today with the opinion of a 20-year veteran in Asian business and policy:

Another Splash article today show how scared the US are of anything Chinese these days:
https://splash247.com/cosco-offers-us-authorities-long-beach-terminal-solution-solve-oocl-takeover/
At the same time they complain about China not being open enough to American investments.(??)


#450

is that China where a foreigner can only own 49% of a company in China?


#451

No the one where foreigners can own 51% controlling interest:

While the US is going the other way:

Here you can compare China, US and 13 other countries laws on foreign ownership and investment:

Throw in Australia for good measure:
https://www.export.gov/article?id=Australia-openness-to-foreign-investment


#452

Looks like Trump is bringing China to its knees or just making a level playing field out of the global game


#453

If that is the view from inside the wall then it will be a long hard learning curve. How will the USA repay the debt to China

BRI is moving forward and countries are climbing on board.

Meanwhile the Chinese Hongs are consolidating:

:http://www.seatrade-maritime.com/news/asia/chiwan-wharf-takes-39-stake-in-cmport-in-asset-shuffling-deal.html


#454

LEVEL PLAYING FIELD???
He has just plowed up a field that has been cultivated for 70 years!!
The farmer has been USA, who have also reaped the best harvest.


#455

Here is the problem. Company A wants to do business in China so it has to sign up a Chinese partner who has 49% shares of a share of a new company in China with the company A holding the balance. The Chinese partner having acquired the intellectual property of A makes it available to a third party who goes into production destroying the value of the company formed by company A.
China is engaged in a hitherto unseen level of industrial espionage. A group of Chinese came to look at horticulture practice in NZ and were found at the border to have stolen cuttings from new varieties of apples.
You had it right in Norway when you built the bare hull in China and fitted it out with all the advanced equipment in Norway.
If you have arbitration in China you can kiss goodbye to your money .


#456

If you are afraid that whoever you partner with or sell to will steal your trade secrets and copy your products you wouldn’t be able to do much business anywhere. Industrial espionage is wide spread and not only conducted by China.

Norway see China as a major future market for its export, incl. marine equipment and technology:


Ships of Norwegian design and with Norwegian equipment are being built in China all the time and for owners of many different nationalities. Some marine equipment are being produced under license, or by subsidiaries in China.

I presume that the hull you where referring to being built in China and outfitted in Norway was this one. Seen here arriving in Norway and being carried on the COSCO HLV Xiang Rui Kou:


To my knowledge that is the only one, otherwise they build hulls or sections in Eastern Europe.

BTW;This was the maiden voyage for the XRK. I was COSCO’s Superint./Loadmaster during loading of the next cargo. (A Grab Dredger from Nagasaki to S.Africa)


#457

There will always be unscrupulous traders in every country in the world and those countries that have the ability to engage in industrial espionage continue to do so.
What I am on about is Chinese involvement is on an unprecedented scale and the carefully crafted rules on trade and arbitration are ignored. There is no redress through the Chinese legal system when a contract is not completed. This seems to be a government directive.


#458

This is silly. China bought long term US Treasury bonds because they thought the bonds were good investments and safe. They actually own less than years past. If China decided to unload their US bonds they have to find a buyer. The USA is under NO obligation to pay China or any other country for long term bonds they buy. They have to sell them on the open market. The only US treasury bond actually guaranteed by the US government are series I savings bonds. If China unloaded or tried to unload their long term bonds it would cause the bond price to plummet and they would lose money causing an inverted yield curve which I would love as I hold mostly shorter term I treasuries.


#459

If China didnt buy T bills they wouldnt sell anything in the USA, same for Japan years ago.
China owes the USA for where it is today as does Japan


#460

actually its Japan they got cheap resources for 70 years…