@Crang bro don't blame the guy, blame the Gas! inhaling to much may cause Copium and Hopium...lol
Chinese Economics Thread
- Thread starter Norfolk
- Start date
Ok, you need to put Lenovo and Xiaomi in their historical context. Before each of them, China was making shit. These two companies created the first major successful PC brand and smart phone brand in China. Brand means (a bit) higher price and market share, which lead to higher quality, lower cost, and gradually, sustainability. that allowed China to become a country that is self-sufficient in making and designing PCs/smartphones, against very well established foreign competitors. You need to understand that back then, they were the cutting edge of Chinese tech. What I am saying is that don't take them for granted. Even if they are slightly easier to replace nowadays than chips, It's better for China to have/dominate the field than let others do it. BTW, they are called system integrators. Foxconn is the manufacture/assembler. Also, in today's tech, there are fewer and fewer things that are have or have not. Most big countries can do everything. But some are just slightly better, which makes all the difference in a globalized world.
I am not sure how and why Huawei phones made so much progress so quickly. But I suspect they have some small edge over others in design. Their in house chips is a plus for China of course. But I don't think their phone department qualify as innovator in any major way. I feel you are exaggerating Huawei phone's advantage. Also I thought Huawei was taking more Apple market share at the higher end than Xiaomi's med tier. Most of Huawei's innovation edge is in their enterprise business. And I am thankful the US sanctioned them out of consumer biz. Huawei focusing on their core enterprise biz will bring about China's next industrial revolution.
In China's tech war with the west, Xiaomi and Lenovo has transitioned from expeditionary force to more homeland defense. I would respect them as they deserve. (remember how HTC got obliterated and Samsung was reduced. not an easy job playing defense and keeping profit and good jobs in China)
Last edited:
Tbh in this case the stock buybacks are justified. Look at their stock price and its okay.
For example Alibaba's stock price has been hammered heavily by western misinformation, so if they do stock buybacks with such a low share price that's good for the shareholders.
Also for every Lenovo laptop and Xiaomi phone bought, means less market share for the foreign companies to profit. So they are still indirectly helping, by lowering the income of competitors.
@Coalescence BUT bro it help indirectly the foreign suppliers, Bro I get your point BUT instead of shares buy back why not invest in inhouse tech development like Huawei did and secure itself from being blackmail like what Xiaomi experience from last couple of years, I sure hope that experiences sting them to action.
Agreed, that's why I written indirectly, because they aren't aligned with the goals of the government for self-sufficiency. Anyways, they are likely going to get sanctioned in the future, when Trump comes back or their competitors lobbying to steal their market share. They better hope that by then, that China has enough chip capacity to accommodate them.
Stock buybacks increase control over the company and makes external shareholders happier by increasing dividends, and thus more willing to go along with what the management wants. I can see a case for it when stock prices are depressed below their fair value. A major reason why US firms have fallen behind in many sectors is that they spend less on investments and instead try to maximise dividends year after year. As a one-off, I think it's defensible, but not if it becomes a habit.
share buy back has many practical benefits. Cash for R&D doesn't always bring better returns. Buy back and lead to higher stock prices, which reduces cost for M&A through stock swap.
also, Xiaomi and BABA are buying stock back from foreign hands at a very low price. remember, foreign listing is a way for foreign venture capitalists to exit China from their earlier rounds of investment.
Common prosperity...
China aims to have 50,000 hydrogen-fueled vehicles by 2025
Updated 17:46, 23-Mar-2022
A vehicle serving the 2022 Beijing Winter Games is fueled with green hydrogen at a hydrogen refueling station in Zhangjiakou, north China's Hebei Province, February 11, 2022. /CFP
China aims to have about 50,000 hydrogen-fueled vehicles and produce 100,000 to 200,000 tonnes of green hydrogen a year by 2025, according to a plan ( in Chinese) jointly released by the National Development and Reform Commission (NDRC) and the National Energy Administration (NEA) on Wednesday.
The country will boost production of green hydrogen, a zero-carbon fuel generated from renewable energy sources, to accomplish the country's carbon peak and carbon neutrality goals.
By 2025, China will put in place a relatively complete hydrogen energy industry development system, with the innovation capability significantly improved and the core technologies and manufacturing processes mastered, according to the plan.
"[We aim to] make great progress in clean energy-made hydrogen production, storage and transportation, improve market competitiveness, and establish a supply system mainly based on industrial by-product hydrogen and green hydrogen," said the plan.
By 2030, China is seeking a reasonable and orderly industrial layout and wide use of hydrogen production from renewable energy to offer solid support for the carbon peaking goal.
By 2035, the proportion of hydrogen produced from renewable energy in terminal energy consumption will increase significantly, which will play an important supporting role in the country's green energy transformation, according to the plan.
Banks are urged to offer precise and differentiated financial services to green hydrogen industry, industrial investment and venture capital funds are encouraged to support innovative firms, and qualified firms are backed to be listed on the tech-heavy startup board ChiNext and the Nasdaq-style STAR Market.
The NDRC also warned of disorderly competition in the industry and called for a rational layout of hydrogen projects based on resources and market demand.
Hydrogen is a secondary source of energy that usually requires a primary energy input to be produced on an industrial scale.
Globally, hydrogen has become an important strategic choice for major developed economies seeking to accelerate their energy transformation and upgrading.
China is currently the largest hydrogen producer in the world, with an annual output of about 33 million tonnes.