Believe there is state policy of 包交楼 or something like that (essentially, you get house/apartment, but still stuck with price you paid/no discounts, and it should be state-owned real estate companies, and possibly some private that are involved in construction).
Chinese Economics Thread
- Thread starter Norfolk
- Start date
supercat
Major
11 years in a row:
you can see an update here on the export volume of Gallium and Germanium since the export restrictions were put into place. imo, they are still exporting far too much Ga. They need to choke that off so industries that rely on Ga in other countries die off. The current implementation still allows too much of that to survive outside of China.
people here are concerned that China will put export control on Tungsten next. I think at this point, China needs to get better at figuring out which export controls will help its high tech industries and which ones won't. It's quite clear they have not used all their leverage yet.
The end goal is to not stop other countries from obtaining those metals, but make that process long and painful enough that domestic customers will win in their industries.
In business, we call that simply, they're screwed.
In my opinion, which I have posted at least a couple of times at this forum, the rise of Chinese industry like this, where it will take away areas where the Western companies thought that was their dominion, that effect will be profound.
(What we are talking about here, to digress for one paragraph, to have something more concrete and not conceptual, so others reading this and we all get on the same page, is Apple and their iProducts. Well, China can do that now too. That is true, from design of a new product, to the marketing on where that Chinese product fits into the ecosystem. That is why Apple and its iProducts, even though I do not like any of them, Apple is a damn important company, as they paved the way for this way of doing business.)
Back to the main story, in the most general sense, the more value added, the more money is made. Okay, being lazy here, do not want to explain any further, it is late and kind of drunk.
This is a problem, because if a company is making less money, they are making less money. They cannot be a world leader anymore. Less profits means less tax revenue.
My opinion is the welfare state, the model championed by Europe is under direct threat by the rise of China.
It is also that other term. Not only is China going after Apple iProducts at the design stage and the marketing stage, the areas at the ends of the smile curve where most of the profits are made, China is being competitive in all areas. Hence, we hear the term de-industrialization bandied about.
Hmm ... less factories, means less well paying jobs in Europe.
I believe we are already this process going on in England. It is not pretty.
What is going to happen, for obvious reasons, if we know what the Europeans are like, the Europeans will try to protect their industries, (from Chinese industries), behind a tariff wall.
And that is a real conundrum.
1. Europe is rich because of trade. Now they feel compelled they have to do the opposite.
2. Will protection of domestic industries really do anything, such as improve competitiveness? No, they are doing the tariff wall for survival reasons.
What will happen next, seems pretty obvious to me.
These tariffs will protect European industry. But that just slows down the current competitiveness decline.
In short, the European tariffs on Chinese products, will only slow down European industrial decline. But, we realistically have to expect that decline to continue.
That is the part those dumb politicians in Europe do not understand. The German business people try to explain to them those politicians so many times and they just don't get it.
Right now, if Europa and China compete head to head, China will win on many industries.
If Europe retreats behind a protectionist wall, then there is no reason to believe that their industrial decline will not continue, because it will.
What is the growth rate of Europe. Like 1%. That means their market is growing at 1% for their tariff protected European companies.
What great a plan this is.
They're screwed.
And that is a real conundrum.
1. Europe is rich because of trade. Now they feel compelled they have to do the opposite.
2. Will protection of domestic industries really do anything, such as improve competitiveness? No, they are doing the tariff wall for survival reasons.
What will happen next, seems pretty obvious to me.
These tariffs will protect European industry. But that just slows down the current competitiveness decline.
In short, the European tariffs on Chinese products, will only slow down European industrial decline. But, we realistically have to expect that decline to continue.
That is the part those dumb politicians in Europe do not understand. The German business people try to explain to them those politicians so many times and they just don't get it.
Right now, if Europa and China compete head to head, China will win on many industries.
If Europe retreats behind a protectionist wall, then there is no reason to believe that their industrial decline will not continue, because it will.
What is the growth rate of Europe. Like 1%. That means their market is growing at 1% for their tariff protected European companies.
What great a plan this is.
They're screwed.
What is one option that a Western company can do?
If ya can't beat 'em, join them.
Like they say in American movies.
Have we seen evidence of that? Of course we have, in particular in industries like auto and pharmaceuticals.
There could be more, but hey! They will raise tariffs, and enact sanctions.
That is why China treats Europe the way it does.
China sees a place in decline, and cannot turn it around, no matter what.
All this tough talk, makes China more convinced the the Europeans have no hope anymore. If you have game, you just do, you don't talk. And you don't growth at 1% and pretend you're tougher and stronger.
China will just humour them, as the English are fond of saying.
Just saying!
If ya can't beat 'em, join them.
Like they say in American movies.
Have we seen evidence of that? Of course we have, in particular in industries like auto and pharmaceuticals.
There could be more, but hey! They will raise tariffs, and enact sanctions.
That is why China treats Europe the way it does.
China sees a place in decline, and cannot turn it around, no matter what.
All this tough talk, makes China more convinced the the Europeans have no hope anymore. If you have game, you just do, you don't talk. And you don't growth at 1% and pretend you're tougher and stronger.
China will just humour them, as the English are fond of saying.
Just saying!
China will just have to export to countries other than EU and US. It will destroy their margin over time (from selling to 3rd world countries that they had monopolized).
What US and EU want to do is to stop other countries from buying better and cheaper products. They would have to find ways start treating other countries. Even Australia and UK are buying Chinese EV (because they don't have a domestic car companies) so they probabaly need a war to manufacture consent to ban buying Chinese cars.)
US will be fine for now as it does not ne d to maintain any trade surplus due to reserve currency status, but the same thing can't be said of EU and Japan.
What US and EU want to do is to stop other countries from buying better and cheaper products. They would have to find ways start treating other countries. Even Australia and UK are buying Chinese EV (because they don't have a domestic car companies) so they probabaly need a war to manufacture consent to ban buying Chinese cars.)
US will be fine for now as it does not ne d to maintain any trade surplus due to reserve currency status, but the same thing can't be said of EU and Japan.
Average Joe still believes its the cheap labour with no rights working 26 hours a day to pump out all the products!
EU is basically rich because of colonialism, which gave them a huge economic base to build that trade advantage, as that is eroding, so is the trade.What is going to happen, for obvious reasons, if we know what the Europeans are like, the Europeans will try to protect their industries, (from Chinese industries), behind a tariff wall.
And that is a real conundrum.
1. Europe is rich because of trade. Now they feel compelled they have to do the opposite.
2. Will protection of domestic industries really do anything, such as improve competitiveness? No, they are doing the tariff wall for survival reasons.
What will happen next, seems pretty obvious to me.
These tariffs will protect European industry. But that just slows down the current competitiveness decline.
In short, the European tariffs on Chinese products, will only slow down European industrial decline. But, we realistically have to expect that decline to continue.
That is the part those dumb politicians in Europe do not understand. The German business people try to explain to them those politicians so many times and they just don't get it.
Right now, if Europa and China compete head to head, China will win on many industries.
If Europe retreats behind a protectionist wall, then there is no reason to believe that their industrial decline will not continue, because it will.
What is the growth rate of Europe. Like 1%. That means their market is growing at 1% for their tariff protected European companies.
What great a plan this is.
They're screwed.