Hendrik_2000
Lieutenant General
About time those selfish tycoon stop exploiting poor migrant and start give back to the society some of their wealth. Instead of gifting 100 million USD to rich Harvard foundation
Chinese Economics Thread
- Thread starter Norfolk
- Start date
Why would Huawei and SMIC be targeted by the government. They are already sanctioned by the US But that’s not the point.
Government directed wealth redistribution doesn’t work in the long term. And let’s be honest that’s what “common prosperity” means.
And the recent “crack down” goes far beyond economics. Government is trying to change Chinese society by edict without any input from society itself.
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Your neoliberal market fundamentalist ramblings won't find much purchase here. Go have this discussion at a Rand Paul fan site.
Wait. You should say that to the West then. They have a property tax, capital gains tax, EU has huge social spending taxed from Businesses.
Seems like all these countries in the West are all highly developed even with wealth distribution.
So tell me, how China, having none of the above, "doesn't work in the long term" if they tried to change some things?
You can cry all you want about Billionaires' human rights or whatever, nobody cares
Hendrik_2000
Lieutenant General
China does not have property tax, Inheritance tax, and income tax is average. What are you talking here Income tax in Holland. Sweden is 40% and up This exhortation to share wealth only apply to small subset of rich people. Eventually it will even benefit them by buying social peace and lessen the threat of high income tax for the wealthy!
Actually without the prodding they should do it on their own. Even in US rich people set up foundation for the good of the society
The left turn in Chinese society in recent years wasn't engineered by the government. When young people saw social mobility plummeting and their oppotunities diminishing, they turned left. Jack Ma went from a tech hero to a tech villain not because he criticised the regulators at a forum, but because he claimed working 12 hours a day 6 days a week for Alibaba were "rewards for good karma". Chinese government has a lot of public support behind these reforms.
As for not having any "input from society", the recent digital privacy law went through the public comments-revision process multiple times and only passed into law in its third revision. Even administrative regulations, like the recent draft regulation on algorithms, go through a similar process. To say the Chinese society has no input is materially false.
Capitalism without control is just as bad. Even your so called neoliberals can agree with that. And that has never been the problem with China.
But is a heavy handed, commandeering style of socialism and wealth redistribution any better.
Where’s the middle ground
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Seriously don't think too much about recent Alibaba donation thing, it's investing from their own mouth. Remember they are still in fierce competition in building market on 2nd and 3rd tier cities with PDD as the main competitor. Consider that 15B is one of many tool to capture consumers/market in lower tier cities.
Alibaba is not donating a cent. They're puting those money to so-called social initiatives that are tied to their business. For example, part of their common prosperity pledge is to help Chinese companies with easier access to international market. I don't call money spend on getting companies to set up shops on your platform "donations", lest you think Uber had donated billions to common prosperity around the world by subsidizing riders. This is just Alibaba reaching out for its old playbook.
Absolutely correct, I have enjoyed numerous donations from Uber, Grab, et al in form of cheap commuting. Thanks VC for supporting middle class lifestyle.