China did not lose anything, it made a mistake in the first place trying to appease a weak paper tiger. EU is just a bunch of American vassal states that tried to pose as big guys but energy crisis revealed their soft underbelly and they ran back to daddy USA crying & begging for help. Their tech belongs to the USA, their energy security is in the US hands, their military depends on the US, and recent Trump raids revealed that the US intelligence has a tight grip on the inept European leaders. Europe is just a joke, it never was a third pole nor it is capable of being one.
Chinese Economics Thread
- Thread starter Norfolk
- Start date
Nah, China would have definitely lost more with the CAI than without - the reason it was proposed in the first place was to draw EU away from US and into China's camp. Now we know that's not really an option.
Bro I find it perplexing especially this eliminate joint venture requirements, forced transfer of technologies. The usual practice when investing in a foreign country, you need local partners to help you navigate your way and when the time comes you have adapted or acclimatized yourself locally then you bought out your partners. In doing so you impart your knowledge, technical know how to run your business operation smoothly, In other words you voluntarily transfer technology, so what's the fuss!
Most of the opening up of the Chinese market that was part of CAI has happened anyway, because China wants the best European companies to move their production to China. It would have been nice to get some guarantees from the EU in exchange, but the EU didn't really offer anything other than keeping market access as open as it already was. So it's mostly a loss for China not to have the agreement, but given the agreement covered so little and was delayed so much by EU bureaucracy, it really didn't matter much
It doesn't really mean much. China itself very very seldom goes into the face of a company with government reps and demand them to share their tech like for example US did with Japan's Toshiba and is trying to do with China's TSMC. IIRC China did it a few times to Russians right after the fall of USSR.
So swearing off doing something that China doesn't really engage in doesn't hurt them too much other than reducing options in the future.
The vast majority of so called tech transfers are just equal exchanges within partnerships where both sides contribute know how to create new brands/products. These wouldn't be impacted as there is nothing forced about them and in fact they benefit the EU companies with necessary tech as well.
Signing bilateral treaties with each EU member is the way to go, who knows if they'll even be a coherent entity a decade later. It also lets China muscle them indivudually through economical disparity. And since EU seems to be going the Gorby path, maybe the opportunity to genuinely harvest some EU countries by force will show up if they weaken themselves too much. Then one can talk not just forced tech transfer but mainly forced resource and wealth transfer.
It’s not forced tech transfer. It was mutually beneficial biz deals.
The collective west has made how many billions off the back of Chinese workers? Every time you buy an iPhone, it was made possible by some Chinese girl working long hours 6 days a week. Think about that every time you buy any consumer electronics. Tim Cook has been known to argue contracts down to the cents and pennies.
In return, the west shared with the Chinese their management and tech know-how. And they never gave China their best tech. China gained a lot it through hard work.
The CAI deal didn't seem like such a good deal for China, to be honest. Its loss was minimal at best and the main cost is in the symbolism. It's just further proof the EU is in the US pocket to such an extent that they will toe the line and refuse even if China is handing them a freebie. Remember, in this deal China basically caved to all their demands at the last minute.
The PRC shouldn't be removing regulations on foreign companies while it's cracking down like mad on domestic companies, anyway. For once I'd love to see them bring a big anti-trust case or fine against a Western company. The latter will still operate in China as long as they're coming out ahead overall.
The PRC shouldn't be removing regulations on foreign companies while it's cracking down like mad on domestic companies, anyway. For once I'd love to see them bring a big anti-trust case or fine against a Western company. The latter will still operate in China as long as they're coming out ahead overall.
GOOD old days. there was a time, when China used to be heavily dependent on German high end industrial goods. they have enjoyed trade surplus a lot.
2022 is unique, first time in history both South Korea and Germany recorded trade deficit with China.
self-sufficiency
All self inflicted by being US vassals.