Chinese Economics Thread

[Tyler]

Facebook 100% yes
Amazon 70% yes
Apple 70% yes

While they all do some important R&D, if you factor how big they are, how big their revenues/profits are, then they should be investing much much more into hard-science R&D.

This is also one of the reasons why a movement is now growing in the US for breaking go these huge companies (especially Facebook, Google).


Its not fashionable to stand for Big Tech in Congress right now

Major universities like Stanford and MIT already rich enough to do their own hard-science R&D. Apple and Facebook should not be forced to "donate".

Large profitable companies should pay their share of taxes, but not forced to "donate" their cash reserves. The right way to do it is to raise the tax rates, but not by some weird excuses of forced donation.

 

[Tyler]

Yes, and they also create bigger monopolies for themselves and eventually destroying SMEs innovation.

Look at the ridiculous situation in China where Alibaba and Tencent basically owned the startups. Duopoly, cartel whatever

Alibaba has lots of competition, like JD.com, Pinduoduo and Meituan etc.
Apple had competition from samsung, huawei and xiaomi.
Tencent has competition from gaming giants like microsoft and sony.

It is China Mobile and PetroChina that are the real duopolies in their industries.

 

[Overbom]

Alibaba has lots of competition, like JD.com, Pinduoduo and Meituan etc.
Apple had competition from samsung, huawei and xiaomi.
Tencent has competition from gaming giants like microsoft and sony.

It is China Mobile and PetroChina that are the real duopolies in their industries.

You are probably not aware of which is why you say that.

Alibaba and Tencent have theirbown investment group subsidiaries, and they buyout stakes at all the startups they can find. Literally, almost all the new big cimlanies have a big stake either from Alibaba or Tencent.

This is ridiculous, clearly a case for the anti-trust hammer to fall down upon them

 

[siegecrossbow]

So are you saying Apple, Amazon and Facebook have garbage R&D?
Large profitable companies should pay their share of taxes, but not forced to "donate" their cash reserves. The right way to do it is to raise the tax rates, but not by some weird excuses of forced donation.

I don’t think the government forced them to donate. Tencent volunteered and the rest of the pack followed. If it is going to hurt their cash flow in a significant way I don’t think that they would’ve donated.

 

[OppositeDay]

I don’t think the government forced them to donate. Tencent volunteered and the rest of the pack followed. If it is going to hurt their cash flow in a significant way I don’t think that they would’ve donated.

Also Tencent first volunteered with a 50 billion yuan program back in April, then added another 50 billion after Xi's recent speech. Alibaba is a late comer to the game.

Corporations run social responsibility programs for PR. It's the case in the US and it's the case in China. People who think Alibaba only set up a common prosperity program to please the Chinese government have no idea the extend of the Chinese public's anger toward Alibaba.

 

[Bellum_Romanum]

Spoken like a true communist.

Spoken like a true failed fascist Capitalist.

 

[Bellum_Romanum]

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.

It ain't your country champ, and where do you get this absolutist attitude that "Government directed wealth redistribution doesn’t work in the long term" as if the recent change is etched in stone and is not subject to change when the conditions/facts on the ground no longer meets reality. Also, have you ever even considered it at all that what you exlaimed that "it has never shown to work maybe because it's never been given a proper environment (absent outside interventions and machinations) for wealth distribution to work since western countries and it's vast array of supporters wouldn't want such scheme to ever work period.

 

[Bellum_Romanum]

And the recent “crack down” goes far beyond economics. Government is trying to change Chinese society by edict without any input from society itself.

And where are you basing this observations from? Are you basing this opinion from your conversations with Chinese people living in China? Or from people that are claiming to be Chinese on reddit?

It's understandable that your economic understanding and economic outlook are different or even antithesis to what the current Chinese government are doing but it's another thing for you to make sweeping claims saying that what the CPC is doing is simply by edict and not without consulting the public or has any input from the public. That statement couldn't be more ignorant and so American without even actually realizing the great irony of such nonsensical comment.

Was the bombing of Libya, Syria, the continued occupation of Iraq/Afghanistan not to mention the continued gargantuan U.S. military budget based on Americans being properly informed and adequately consulted?

 

[steel21]

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

What, like the Koch Foundation?

 

[Gatekeeper]

Good luck staying competitive when 30% of your cash is taken by the state. There goes your R&D budget.

Do some research before sprouting out garbage here. ALL major western government have tax burden on their citizens of 30% and more.

Government directed wealth redistribution doesn’t work in the long term. And let’s be honest that’s what “common prosperity” means

Doesn't work? Even in the USA. Government redistribute wealth. Didn't you get your furlough cheques? Didn't you get your free education? Didn't you get your free medical care?

Next time engage brain in some critical thinking instead of coming out with garbage like that, please.