With stupidity like this, any dreams of India being a true super powered has been killed off before child birth. The western ways have become stagnant and they will have a good showing during the next few months as to the end results of there lack for foresight. I believe that Pakistan will become a greater nation then India in the future as long as they don't follow the model of there neighbor
Chinese Economics Thread
- Thread starter Norfolk
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Hi localizer,
thanks for hukou.
Hukou helps a lot in regulating migrants and therefore not overwhelm the city resources, it need to be reformed but not cancel. Its being demonize in the west as an example of govt abuse. But you had to ask yourself, is living in a filthy slam ghetto a form of human right.
Hukou has become more or less symbolic in recent years except for the first and second tier cities. I think another important factor why China didn't have slum like the India is the fact that many farmers still have a home to return to in the countryside and a farm to rent out for a small income if they can't make it in the big cities. CCP has also spent many resources to eradicate chronic poverty by building infrastructure in the countryside and invest heavily in connecting municipalities through highway and high speed railroad and encouraging the development of tourism in poor region.
supercat
Colonel
Those on the reddit saying China would be stuck in the middle income trap, would stagnate in 2030, or get old before get rich probably never visited China recently, and only know China through biased reports by the Western MSM. If they have the slightest inkling about China's aspiration for innovation, enthusiasm for entrepreneurship, and dynamism in economic activities nowadays, they would not parrot the same BS from the Western MSM.
Another important point is never to privatize land. If you privatize land like what Western economists want you to do, a lot of farmers will sell their land thinking they are making a fortune, not realizing that the land is actually far more valuable than the selling price a few years later. You pretty much create millions of landless peasants overnight, while the land will concentrate in the hands of fewer and fewer landlords. This is precisely what happened in the Philippines in its "land reform" in the 1930s, one of the reasons why it is still a banana republic today.
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I thought about instead of allowing people to sell land, China's land can be split as shares to citizens. The state and citizens own shares and rent revenue generated on the land goes to citizens and the state. These shares can be bought and sold.
Done. This system is actually a more efficient and socially responsible utilization of land resources. Under-utilized land can efficiently be recycled into the economy at very least every 70 years.
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Real Estate and Land Ownership
In China, real estate ownership and land usage rights are separate. Land usage is limited, but ownership of real estate is not. China practices socialist public ownership of all land, meaning one person or organization cannot own land. When someone purchases real estate in China, he is leasing land usage rights that will expire. Land rights depend on how the land will be used:
Owners with land usage rights can manage the land however they choose (build houses and buildings, exchange land, inherit, pledge, or use it as collateral), but true ownership belongs to the state, which can withdraw the land leasing rights midterm for fair compensation.
If the land usage rights are transferred, the original contract expiration date still applies. At the end of the term, the contract could be automatically renewed, or the owner could be required to purchase the rights again.
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I believe we need a pathway to land ownership as form of investment. Chinese can then finally divest from housing real estate and move onto owning shares of land generating income from natural resources and the like.
If someone wants to buy up 100 acres in the desert and pay money to every willing shareholder, let him have majority stake. He can then pass that to his children and keep the share profits from that land provided he pays the necessary taxes (pollution, protection, ...)
This is why China has the hukou system for the control of internal migration. It is designed to stop this shanty towns seen in many developing countries.
This shanty towns have many social, economic problems that is too numerous to get into here. Suffice to say I for one are glad China gont have this shanty towns.
Of course, the West don't like this, and are constantly pointing out how draconian and despotic the commies are with their control of the population. Of how left behind children and their nannies are left to fend for themselves, blah blah.
Well take you pick. Shanty town or hukou.
By the way the above picture is not unique to india or developing countries, take a drive outside Los Angeles and you will see tent city all along the highway!
Smartphone shipments in China plunge 35% in July: government data
SHANGHAI (Reuters) - Smartphone shipments in China plunged 35% in July compared with a year earlier, government data released on Tuesday shows.
The numbers suggest handset demand in China remains weak despite indications of a recovery after coronavirus cases peaked, boding poorly for companies like Apple Inc (AAPL.O) and its local rivals such as Huawei Technologies Co Ltd.
Phone makers shipped 21.3 million handsets in July, versus 33 million a year earlier, according to the China Academy of Information and Communications Technology (CAICT), a state-backed think tank.
That marks a steeper decline than in May and June, when shipments dropped 10% and 16%, respectively.
In April, after a slump in the previous months due to the health crisis, CAICT reported smartphone shipments grew an unexpected 17% annually.
From this data, western economic analysis said that China retail recovery is stalled
Low birth rate is indeed a huge problem for China or any country. With low birth-rate you get to a death spiral of ever decreasing population and lower GDP as a result. What China did with One Child Policy was overkill in my opinion. They could have gone for 2 child policy which leads to replacement level birth-rate.
Now that Chinese people have gotten used to having only one child, they are not naturally not having a second child even after replacing one child policy with 2 child policy. As China gets richer, its birth rate will be even lower. Just have a look at Hong Kong, Taiwan or even Singapore to see how bad the Birth rate is in a developed Han Chinese society.
So, China is indeed in huge trouble.
But, there is something China has that these places don't have. The brute force and organization capability of the CCP. If the CCP thinks that low-birth rate is a huge threat, it will forcefully increase birth rate. There will be a mandatory 2-3 child policy. CCP can use heavy taxes on Childless people or put penalty on who gets promoted in workplace based on how many children they have. These are the exact policy China used to enforce one Child policy. They can be again used to enforce mandatory 2-3 child policy.
I think there is still inertia about how bad the situation is in terms of birth rate. But it will hit slowly in the next decade or two. Then there will be enough political pressure to enact such tough policies. CCP will also have to do heavy propaganda campaign to make it almost a taboo to not have children. It should be something that makes people embarrassed if they don't have children. Only then there will be a change in the birth rate.
In the modern day, having a child is considered a burden. So, positive policies will not work. It never worked anywhere. There will need to be penalties for not having children for things to change.