Chinese Economics Thread

Engineer

Major
They could have rationalised and cleaned up the mining process when there was a glut. Its just convienient to use it as an excuse now.

Excuses? China doesn't need any excuse to stop exporting rare earth materials. These are China's own resources in the first place and China can stop exporting at any time and it would be totally justified. Giving the West some reasons is a form courtesy, not a requirement. And weren't you the one who insinuated that the West is too good for China's rare earth materials, and that the West could so easily go for alternatives? So why complaining now? The West has only itself to blame for the price hike because they are sitting on piles of rare earth resources while trying to deplete China's.
 

latenlazy

Brigadier
Never said China was a victim like how people believe China puts a gun to everyone's head.
Careful. Did I say you said China was a victim?
Those are both examples of trying to prevent China from getting the latest technologies no matter how absurd the reasons sounds. Not surprised you wouldn't be satisfied when before you thought there were no examples. Corning supposedly had some special glass making process which was the excuse. What are the Chinese going to learn from just putting the pieces together? They aren't producing the glass. If all countries go through this scrutiny then why China and not Japan or the Taiwanese company making the flat panels? Shouldn't they be prevented from having the special Corning glass? What's the difference? And what's to prevent China from jsut buying a flat panel with this special Corning glass and learning its secrets from that? There's no logic because it's all paranoia. As for Coca Cola... really, you're going to use that as an example of Chinese unfairness when China has faced hurdles buying anything from the US like Maytag? That's called tit-for-tat. And that's a really bad example since American corporations have a clear and obvious presence in China than China does in the US.
My point was proving an anecdote is not proving a trend, and FYI it's not like China has been excluded from Corning glass entirely, just a very specific process for glass making. In other words, it's the production of the glass they weren't allowed to buy. If they figure it out on their own, good for them, but direct purchasing of any product across different countries is and has always been to patent regulations. You're going to have to prove that Japan and Taiwan were allowed to buy what China was not able to buy in order to prove preferential treatment, but as it stands even a little research shows that Corning and China have dealings, which would refute the notion that the West is preventing China from acquiring any technology period. And before you use Japan and Taiwan again, you should probably remember that Japan and the US had a very controversial trade relation as well.

I did not use Coca Cola as an example of China unfairness. If I were interested in "fairness" I would have used the word. I am merely pointing out that obstructive behavior is normal among nation states. Yes, it is tit-for-tat, but it's hardly unique. My point is China isn't being taken out for preferential treatment here. Sometimes it gets the deals it wants with the US, sometimes it doesn't. That's very far from "the West is preventing China from getting the latest technologies".
I love how you twist words in order to win arguments. I never said the West is out to prevent China from acquiring any technology. I said the latest. This is a theme with you.
On the contrary, trying to cop out by assuming I meant all technologies, when the subject of discussion is very clear is twisting my words. If it makes you feel any better though, last I checked China was allowed to buy the latest high speed rail technology in the early 2000s and do joint partnerships researching new green tech. Clearly an example of the West doing everything it can to prevent China from acquiring the "latest" technologies right?
Same as above. Never said they're trying to prevent China from having any technology. Same theme again.
And you accuse me of spinning. *rollseyes*

That might be your spin but was there ever any agreement or international treaty that said China was to provide as much rare earths as the West wanted? There is none. That's called claiming rights to Chinese property they don't own. China didn't tell them to stop their processing and refining facilities. They did it on their own.
Point to where the West is claiming rights to China's rare earths? Complaining about price hikes=/=claiming a right. The only "rights" oriented argument has been in relation to the WTO regarding tariffs and inventory limits. Last I checked that wasn't claiming a right to another country's resources, but a disagreement about trade agreements.
There was a story recently of a Japanese company who's moving their facilities to China to take advantage of the abundant cheap supply of rare earths. The article charged that this whole business of restricting export of rare earths was a ploy by China to force foreign manufacturers to manufacture in China. Where are fluroescent light bulbs that Western companies sell made? That's right... China! If this was a ploy by China to get foreign manufacturers to move to China because they won't face the price hike on rare earths, then how is the price of fluroescent bulbs rising in the US if they're made in China. The rise in prices is a result of manipulation by the very Western companies that outsource to China.
Are you trying to say China's a victim? :p

One article doesn't represent everyone's views on the matter (and I'm curious what the source would be?). Saying that an article from a Western press represents all of Western public opinion is like saying an article from the Chinese press represents all of Chinese public opinion. It's silly.

I agree this is a good thing for the West to produce their own rare earths. Because they'll find out this is an example of why they outsource to other countries. This whole story over rare earths is hyped and spun by the West when it's simply an outsourcing story where they're getting what they say they've always wanted. Jobs coming back home and national security. Then why are they complaining?
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Read up. I suggest you brush up on what outsourcing actually is before claiming something is an example of it.
Assumption that the West is blaming China? That's all these articles are doing. Now who's mixing things up? What other countries are they talking about then?
I'd be interested in seeing points where you think the article is blaming China. We could be interpreting things differently, but in so far, I've only seen prescribing cause, which is very different from assigning blame.
This is a perfect example of outsourcing in every way. You don't understand because I can see you have a narrow defintion of outsourcing. The US closed it's rare earths industries because they could get it cheaper from another country. That's outsourcing. Do you also think that Western corporations buy and provide all the material resources need to make their product in other countries? Not in China. All the stories about China scouring the Earth buying up resources in part goes to make their products. Do you think these Western corporations that outsource to China own those factories that produce their products? Apple doesn't own Foxconn that manufactures their products. I believe it's a Taiwanese company that owns a factory in China that makes all those Apple products. It's the exact same reasons when it comes to why Western corporations that need rare earth elements to manufacture their goods go to other countries. And that's called outsourcing.
While what you said is accurate, I think we're losing the strand of relevance to this particular point, and I'm not interested in a definitions debate. What I was trying to point out originally is that all businesses complain when their input costs go up, Chinese, American, etc etc. Just because US businesses complain about their costs going up is not a sign that they believe they have a right to China's rare earths.

I love your logic. If someone listened then why are they in this fix and whining about it? No one has claimed China has put a gun to their head? Then why are they whining about how they're dependent on China for rare earths. Did China put a gun to their heads to order them through force to close their facilities just so China can monopolize the rare earth market? Donald Trump chose to buy Chinese materials because he wanted to make more money not because China forced him. Yet he's blaming China for it.
Because...that's what the press does? Just like China whines about the US debt? You're going to have to convince me how whining about something must also necessitate the belief that someone's putting a gun to your head, because one does not automatically imply the other. And FYI, Trump is the worst kind of businessman. Of course he's going to be hypocritical.

You're trying to paint China playing the victim? No it's the people that made their own choices to outsource so they can make money trying hide their greed behind being a victim. Where did I say Walmart blames China for what? Another example of how you just pull things out of nowhere to make your argument? You should really take a step back and look how a lot of your arguments are based on things you assume and not actually made by the other side. It's like watching someone argue to themselves.
I hope you know why I even bothered to delve into this topic...because it wasn't for the purposes of having a "China vs US" discussion. No, I am not saying China is playing the victim. If I wanted to do that I would have pulled up articles of angry Chinese people who say the West is blaming them unfairly (though you seem to be doing a good job of that).

I mentioned what Walmart said because that was in the article. It was to make a point that just because Walmart is complaining does not mean the State dept is complaining about the same thing. Walmart might not like the rare earth industry in China consolidating because it means higher prices. The State and Commerce Depts on the other hand are purely focused on the price barrier disputes. Different problems regarding their dealings with the Chinese rare earth industry, and therefore different points of view. In other words, you can't simply generalize what one person says and apply their reasoning to other people.

I would not be accusing other people of assuming things if I were you. So far you've appeared to make several assumptions about what I've been saying without reading carefully. For example, you completely ignore my point about not using anecdotes to generalize, and continue to do so.

If it helps to clarify any though, I am saying that there is no victim in this situation. This is just business as usual.
Go back and look at the title of the article. It says, "China Consolidates Grip on Rare Earths." And you're saying it's not about China? Is this like Bill Clinton saying, "...depends on what your definition of 'is' is."

I'm going to love seeing the next spin.
Yes, it says "Consolidate Grip on Rare Earths", not "China At Fault for Rare Earth Prices".

Anyways, this is the last time I'm going to be responding to this. I have no interest in transforming this thread into a discussion on "Is China being blamed unfairly" or "Is the West a bunch of moronic rabid hypocrites".
 
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latenlazy

Brigadier
Excuses? China doesn't need any excuse to stop exporting rare earth materials. These are China's own resources in the first place and China can stop exporting at any time and it would be totally justified. Giving the West some reasons is a form courtesy, not a requirement. And weren't you the one who insinuated that the West is too good for China's rare earth materials, and that the West could so easily go for alternatives? So why complaining now? The West has only itself to blame for the price hike because they are sitting on piles of rare earth resources while trying to deplete China's.

Well, someone could equally argue that if China didn't want the West depleting their resources then why did they let others have access in the first place :p. Anyways, trying to throw blame and accusation around this topic is pretty stupid IMO. China may have a right to do things, but that doesn't mean people and countries can't be unhappy about it. Just because they're unhappy about it though doesn't mean they're expressing colonialism. Prices are going up, regardless of how they feel. The market finds a way, and if it doesn't politics will.
 
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AssassinsMace

Lieutenant General
Careful. Did I say you said China was a victim?

Yes you did. You brought up the how everyone is trying make China a victim? The victim mentality are the people blaming China for all their problems and not because of their own choices.

My point was proving an anecdote is not proving a trend, and FYI it's not like China has been excluded from Corning glass entirely, just a very specific process for glass making. In other words, it's the production of the glass they weren't allowed to buy. If they figure it out on their own, good for them, but direct purchasing of any product across different countries is and has always been to patent regulations. You're going to have to prove that Japan and Taiwan were allowed to buy what China was not able to buy in order to prove preferential treatment, but as it stands even a little research shows that Corning and China have dealings, which would refute the notion that the West is preventing China from acquiring any technology period. And before you use Japan and Taiwan again, you should probably remember that Japan and the US had a very controversial trade relation as well.

I did not use Coca Cola as an example of China unfairness. If I were interested in "fairness" I would have used the word. I am merely pointing out that obstructive behavior is normal among nation states. Yes, it is tit-for-tat, but it's hardly unique. My point is China isn't being taken out for preferential treatment here. Sometimes it gets the deals it wants with the US, sometimes it doesn't. That's very far from "the West is preventing China from getting the latest technologies".

Here's what you don't understand. I don't have to prove anything. The building of the factory to make flat panels was stopped simply because their reason, valid or not, was they didn't want China to have access. It was a Japanese or Taiwanese company and you question whether or not either what company it was had access to these Corning special glass so you can argue it wasn't because of just China? Obviously they did since they wanted to open the factory. What do you think this was? A new product where this company for the first time ever made this flat panel screen? No prototype or nothing was ever made because accordingly you want proof that this company didn't have access to this glass either so it wasn't about China? Who ever heard of a business where they draw up plans to make a new flat screen and a factory overseas to produce it before they ever build the prototype not knowing if they can use Corning glass?

You brought up Coca Cola to show how China is unfair. I'm the one that mentioned how China has been prevented from buying US assets. You didn't. Oh yeah you can spin that you didn't do this or didn't say that so you didn't say it at all being all mysterious with your argument so you spin it anyway you want but that's what you were saying.

On the contrary, trying to cop out by assuming I meant all technologies, when the subject of discussion is very clear is twisting my words. If it makes you feel any better though, last I checked China was allowed to buy the latest high speed rail technology in the early 2000s and do joint partnerships researching new green tech. Clearly an example of the West doing everything it can to prevent China from acquiring the "latest" technologies right?

I clearly said the latest advanced technology. All I read from your previous post was all technology. Your the one that brought up TVs and cars to counter. That was the spin I was talking about so you can twist what I said into something.

You tell me go back and read? Take your own advice. First of all the US has no high speed rail technology to sell. Second, I did say before that China was able to get high technology from others. Spin and twist again.

Point to where the West is claiming rights to China's rare earths? Complaining about price hikes=/=claiming a right. The only "rights" oriented argument has been in relation to the WTO regarding tariffs and inventory limits. Last I checked that wasn't claiming a right to another country's resources, but a disagreement about trade agreements.

I already did. If you want to go into denial, that's your problem. You seem to be a stickler for exactness. If they're complaining about the rare earth quota and want China to be forced to get rid of the quota by intimidation or through the WTO, that's called thinking they have rights to what China owns. Have you shown proof of this contract, agreement, or treaty that says China will provide without restriction as much rare earths as they want? You're the stickler for legal exactness. DeBeers, the diamond company, can't do business in the US because the US has declared it a monopoly. Why don't they do that with rare earths? Is this another case where China put a gun to their heads and told them not to do it? They made the choices and it's their fault. What a perfect opportunity to eliminate the national security threat of being dependent on China for rare earths and they didn't do it. And DeBeers has been accused of holding back on diamonds to keep the price high. Do we see any WTO action against them?

Are you trying to say China's a victim? :p

One article doesn't represent everyone's views on the matter (and I'm curious what the source would be?). Saying that an article from a Western press represents all of Western public opinion is like saying an article from the Chinese press represents all of Chinese public opinion. It's silly.

Why did you bring up the "victim" card again? If anything you twist it because clearly that story is saying everyone else is a victim of China and its trade practices. I have no idea where you can possibly say I was saying China was playing the victim. That article wasn't found in any opinion or editorial section and you're saying it's just an opinion? Spin again. Maybe you didn't understand that I was countering your argument of China raising prices which is your argument why it's a WTO matter. I was bringing up that it's not China that's the one raising prices. If people are complaining about the rise in the price of fluroescent light bulbs made in China and the article says companies are moving factories to China to avoid the hike in prices where rare earths are a plenty, that's the contradiction I'm pointing to.

Outsourcing - Wikipedia, the free encyclopedia
Read up. I suggest you brush up on what outsourcing actually is before claiming something is an example of it.

Again take your own advice. What I read from your link perfectly describes this is an outsourcing story. That's why I brought and posted that article in the first place. I saw the irony this was about outsourcing and they're complaining about what happens when they get what they want in regard to outsourcing. The jobs come home. That's what they wanted. That's what they're getting. The rise in price for whatever reason is going to happen simply because when those jobs come home, those companies are going to have to pay more to produce it. I see why your demand for exactness refuses to see it that way because no one else has pointed it out. I bet just because it came from me that's why you refuse to see the irony that this is the "happy ending" of what all those who are against outsourcing want to see happen.

I'd be interested in seeing points where you think the article is blaming China. We could be interpreting things differently, but in so far, I've only seen prescribing cause, which is very different from assigning blame.

Already did. If the article says that China is the reason prices are going up, they're blaming China. And you haven't answered who else are they blaming since you think they're not blaming China alone even though China is the first word in the article's title. I already pointed out the story that charges China is "forcing" foreign companies to move manufacturing to China in order to avoid the price hike in rare earths. If most fluroescent light bulbs are made in China, then there shouldn't be a rise in prices and that's the Western companies' fault gouging prices in the guise of the restriction of the rare earths market. And I know you're going to demand that how I know these things are happening. I don't have to. I've been and have been pointing out from the beginning the contradictions. So if if you have a problem with the reporting, then you go demand them to show proof. I 've pointed there's a significant amount of lying going on here. And what is the only thing consistant with all these articles? They all come from the anti-China side. So if all the evidence they believe shows China as the antagonist in the world, why would they need to lie? The "truth" isn't powerful enough to make their case?

While what you said is accurate, I think we're losing the strand of relevance to this particular point, and I'm not interested in a definitions debate. What I was trying to point out originally is that all businesses complain when their input costs go up, Chinese, American, etc etc. Just because US businesses complain about their costs going up is not a sign that they believe they have a right to China's rare earths.

Since you were the one to reply to my postings, you are losing the relevance. I started this by pointing out how this is a "be careful what you wish for" outsourcing story. You still haven't mentioned what is your definition of outsourcing. Even your Wikipedia link says it's unclear. But what is clear is outsourcing is when one country has their own capacity to produce chooses to go to another country because it ends up to be less expensive to produce over there. That's the situation over rare earths. You're the one demanding I prove what these journalist write to be true. You think everything journalists write is their opinion? Maybe and I'll agree that happens but that's not how it's presented. I didn't find these stories in the editorials section. Since some of these stories come from the New York Times, called the newspaper record for the world, they ain't saying it's an opinion but fact. You are in a definition debate of you're own making since you're the one saying it's not about China when all these articles name China. You're rewriting and reinterpreting what's been printed.

Because...that's what the press does? Just like China whines about the US debt? You're going to have to convince me how whining about something must also necessitate the belief that someone's putting a gun to your head, because one does not automatically imply the other. And FYI, Trump is the worst kind of businessman. Of course he's going to be hypocritical.

When you're blaming another because of a choice you made driven by your own greed, that's saying a gun was put to their head and you were forced to do it. Doesn't matter what your opinion of Trump is. You wanted an example of someone who claimed they had a gun to their head and was forced to buy Chinese. You think he's the only one that blamed China to cover up his greed? You're the one that wants examples.

I hope you know why I even bothered to delve into this topic...because it wasn't for the purposes of having a "China vs US" discussion. No, I am not saying China is playing the victim. If I wanted to do that I would have pulled up articles of angry Chinese people who say the West is blaming them unfairly (though you seem to be doing a good job of that).

I mentioned what Walmart said because that was in the article. It was to make a point that just because Walmart is complaining does not mean the State dept is complaining about the same thing. Walmart might not like the rare earth industry in China consolidating because it means higher prices. The State and Commerce Depts on the other hand are purely focused on the price barrier disputes. Different problems regarding their dealings with the Chinese rare earth industry, and therefore different points of view. In other words, you can't simply generalize what one person says and apply their reasoning to other people.

I would not be accusing other people of assuming things if I were you. So far you've appeared to make several assumptions about what I've been saying without reading carefully. For example, you completely ignore my point about not using anecdotes to generalize, and continue to do so.

If it helps to clarify any though, I am saying that there is no victim in this situation. This is just business as usual.

Why did you bother? All I did was point to the irony this is a "be careful what you wish for" outsourcing story to which you argue in all your postings that it's not. Why? Because no one has mentioned it except for me? That's my assertion and that's why I posted it to share. Maybe I shouldn't think for myself and be a follower like everyone else only believing what authority tells me.

State department only concerned with barriers? Like how the West puts up a barrier when China wants their electric car technology? What's the only difference? The West can say no. But apparently China is not allowed to say no when it comes to their own property. And I can see how you avoid that fact there was no agreement or treaty or investment by a Western company into Chinese rare earth industries which says the most that they have no grounds to complain. You won't even admit that China had no direct part in the decision to close down there rare earth facilities in order for them to make as much money as possible by having their rare earth needs outsourced. That's their fault in spite of many warnings through the years by their own people that there was a national security danger being dependent on other countries for key industries.

No one brought up victim except for you. That's your demeaning spin for anyone daring to argue otherwise. And you think your side isn't crying they're a victim? Do any of these news stories mention that all these companies chose to outsource because they want to make every penny they can exploiting cheap labor overseas? It's purely the fault of these companies and no elses. Why? Because they made the choice. The media makes it sound as if a gun was put to their head and they didn't have a choice. Who's the one playing victim? I can say you throw out that demeaning term simply to stifle anyone pointing out the hypocrisy of it all. When people counter charges, that's called self-defense not pulling out the victim card.

Here's what's funny about your whole point of argument. You expect me to prove what these journalists write in these stories to be true? I don't have to. I don't care if they're true or not. My point from the very beginning was pointing out the contradictions and lies of their own logic. If you need proof of what these journalist write, then demand it from them.
 
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bladerunner

Banned Idiot
And weren't you the one who insinuated that the West is too good for China's rare earth materials, and that the West could so easily go for alternatives?

LOL Talk about twisting things around.

Firstly I never said or even came close to suggesting that the West was too good for Chinas Rare earth materials. I also asked the question on whether alternatives could be found. I meant it in the same way in which Germany developed synrhetic oil to supplement her natural supplies or the introduction of nylon in place of silk etc.
 

Engineer

Major
Well, someone could equally argue that if China didn't want the West depleting their resources then why did they let others have access in the first place :p. Anyways, trying to throw blame and accusation around this topic is pretty stupid IMO. China may have a right to do things, but that doesn't mean people and countries can't be unhappy about it. Just because they're unhappy about it though doesn't mean they're expressing colonialism. Prices are going up, regardless of how they feel. The market finds a way, and if it doesn't politics will.

The intention of opening the market for foreign access should not be confused with the intention of giving up resources essentially for free. Unless you have documents showing that the Chinese originally planned to just give away the resources, then the comparison you used here is invalid.
 

Engineer

Major
LOL Talk about twisting things around.

LMAO! Trying to paint China as the guilty party for justifiably managing its own resources is called twisting things around. Pointing out the China is justified in exercising its rights over its own resources is called stating the obvious. But thanks for playing.
 

latenlazy

Brigadier
The intention of opening the market for foreign access should not be confused with the intention of giving up resources essentially for free. Unless you have documents showing that the Chinese originally planned to just give away the resources, then the comparison you used here is invalid.
I don't think I made a comparison? Anyways, I think where we're disagreeing is that I see businesses complaining about resource access and price hikes not as an indication that they feel entitled to those resources, but as a typical behavior from businesses. Businesses complain all the time, but it doesn't really imply anything.
 

i.e.

Senior Member
Not entirely true. It takes a lot more than just a trade surplus for a currency to have purchasing power. Your debt needs to be freely monetizable too (allowing others to buy your debt), so that other countries can start building a reserve of that currency. Otherwise there is a price to convertibility, and jumping through the hoops for it makes the Yuan unlikely to be used as a medium of exchange for trade. Here's an article that I was reading yesterday which is ironically appropriate.

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The rest of my post mentioned the slow migration of Yuan as a trade vehicle and built up of HK as a offshore market for yuan. the problem is, yes, liquidity of Yuan, but all signs pointing to yuan being more liquid.

The problem with currency market is it is meant to be a market but driven by fiat money, central banks can essentially drive the market by print money.
may be a market mechanism is not what's needed!
 
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