Chinese Economics Thread

[B.I.B.]

We had a prominent sportsman who was of the Muslim faith who loaned another high profile businessman $1 million who was about to be declared bankrupt on nothing more than a handshake because the muslim faith does not allow the charging or receiving of interest.
My question is, Whats the financial arrangement China or any country have when extending loans to Muslim countries.?.

 

[Equation]

You can both attack and defend at the same time; like in chess, a move can have multiple implications. Note for instance that I am praising Mao's transformation of Chinese culture into one that is more dynamic and accommodating, and I am condemning what I fear as calcification. Likewise, note that whenever I have criticized Japan, I've also moderated it with praise for Japan's various achievements.

A moderate's position is always difficult, as others have noted; whereas people on a clear side can proceed merely to attack both the center and their opponents, moderates have to defend their positions from both sides.

Think about, say, witchhunts. The best thing you can do to an enemy intelligence organization is to sow distrust and encourage witchhunts. You might not have any actual spies in the opfor, but when people turn against each other or use the witchhunt to pursue political goals you've weakened the opposing organization through their own tactics.

It's the same with correct criticism. The worst thing way someone can respond to criticism is to become defensive, because that defensiveness stops them from adjusting to the correct aspects of their criticism. Note, for instance, I did not just bring up good quality Chinese goods in responding to SamuraiBlue. I admitted and emphasized that there both were and were not problems with Chinese quality; firms under strict foreign supervision or targeting a market for which quality is a competitive advantage produce high-quality products, as we've seen in the case of caviar and 1911s. Firms that are competing merely in commodity segments, on the other hand, often cut quality to cut costs. SamuraiBlue is then both right and wrong; there are firms to which his blanket denunciation does apply, but there are also firms that he is libelling.

I'd also like to note, how is your response similar or different from SamuraiBlue's? Sure, you have a Chinese viewpoint, and you view your own perspective as correct, while his is incorrect, but you are in both cases being defensive.

SB is in defense on Japanese pride and ignoring history like they ignore Imperial Japanese atrocities during WW 2 and than try to divert it by saying look at the Cultural Revolution and etc. As for me I'm on defense to the facts and misconception and views related to anything that is Chinese Communism that's been sadly twisted and widely perpetuated by the West and their puppet followers.

 

[antiterror13]

We had a prominent sportsman who was of the Muslim faith who loaned another high profile businessman $1 million who was about to be declared bankrupt on nothing more than a handshake because the muslim faith does not allow the charging or receiving of interest.
My question is, Whats the financial arrangement China or any country have when extending loans to Muslim countries.?.

Just change the word "interest" with "fee .. and basically the same

 

[KIENCHIN]

We had a prominent sportsman who was of the Muslim faith who loaned another high profile businessman $1 million who was about to be declared bankrupt on nothing more than a handshake because the muslim faith does not allow the charging or receiving of interest.
My question is, Whats the financial arrangement China or any country have when extending loans to Muslim countries.?.

The Muslim faith does not allow the charging of interest but that does not mean it is without anything in return. In this case the guy would get a cut of whatever profit the business man gets from receiving the loan which is effectively a dividend

 

[B.I.B.]

The Muslim faith does not allow the charging of interest but that does not mean it is without anything in return. In this case the guy would get a cut of whatever profit the business man gets from receiving the loan which is effectively a dividend

The Muslim faith does not allow the charging of interest but that does not mean it is without anything in return. In this case the guy would get a cut of whatever profit the business man gets from receiving the loan which is effectively a dividend

But how would you apply that approach to international operations(private/govt level) if the participants don't use the same accounting standards?
I think one can give the same set of company records to 10 different accountants and end up with 10 totally different financial statements.

 

[KIENCHIN]

But how would you apply that approach to international operations(private/govt level) if the participants don't use the same accounting standards?
I think one can give the same set of company records to 10 different accountants and end up with 10 totally different financial statements.

I am afraid I am not qualified to answer your question, perhaps advill would be able to give us a simple answer. Malaysia has a robust Islamic banking system that works together with the western one and I am sure issues like this would have been sorted

 

[vincent]

But how would you apply that approach to international operations(private/govt level) if the participants don't use the same accounting standards?
I think one can give the same set of company records to 10 different accountants and end up with 10 totally different financial statements.

There is tax accounting and there is financial accounting. Two set of books in a way. One prepare your numbers according to the tax laws in the countries you are operating and the other is used to judge the performance if the company

 

[advill]

Ahem! Tks Kienchin - but what little I know from my good Muslim friends in Malaysia, basically an Islamic Banking system has western financial overtones. If one studies its banking concepts carefully, it can be a very viable/profitable system. Singapore, a secular society has a few banks (Chinese ones) that participate in this banking system. They also have separate branches in Malaysia e.g. Hong Leong "Islamic Bank" in KL. One has to study/understand the Islamic monetary religious laws which could be puzzling to foreigners e.g. One cannot earn interests as in Western Banking system/standards, but no problem in getting Islamic Banking to give "commissions" for your investments. It's a matter of semantics - what the heck! as long as Commissions are paid, it could be good value for investments. Several Overseas Chinese Banks in Southeast Asia have taken to "Islamic Banking". If I am not mistaken some China Banks are also examining possibilities - Remember that Saudi Arabia, UAE are rich Islamic countries can be offered such facilities by us in Asia. Only wise business/financial people know this......... Ahhhhhh I remember what Deng Tsioping said "It doesn't matter whether the cat is black or white as long as it catches mice".

 

[B.I.B.]

There is tax accounting and there is financial accounting. Two set of books in a way. One prepare your numbers according to the tax laws in the countries you are operating and the other is used to judge the performance if the company

Thats true.

I was thinking that cultural differences may have impacted on how financial accounting was employed. I hate researching, but I found a partial answer.
It appears that China and most of the developing Muslim countries to some extent subscribe to IFRS.

Please, Log in or Register to view URLs content!

and I also found something that could be useful

Malaysian Financial Reporting Standards (MFRS), which are fully IFRS-compliant and permit entities to make an unreserved statement of compliance with IFRS, are required to be followed by Malaysian non-private entities for annual periods beginning on or after 1 January 2012. However, certain entities in the real estate and agricultural industries are not required to apply MFRS until annual periods beginning on or after 1 January 2017 (early adoption permitted).

 

[Equation]

China posts double-digit gain in fiscal revenue
Economists at OPEC see the world's No. 2 economy posting a higher demand for crude oil.

Please, Log in or Register to view URLs content!

China reports a double-digit gain in fiscal revenue, highlighting durable growth for the world's second-largest economy. File photo by Stephen Shaver/UPI
|License Photo


April 14 (UPI) --Amid signs of growing demand for oil and petroleum products, China's

Please, Log in or Register to view URLs content!

reported fiscal revenue rose 14.1 percent in the first quarter.

The official Xinhua News Agency reports

Please, Log in or Register to view URLs content!

of $645.9 billion in fiscal revenue during the first quarter, a gain of 14.1 percent year-over-year. Growth retreated in the first two months of the year, though fiscal revenue improved year-over-year by 12.2 percent in March.

"The ministry attributed the rapid growth to rising prices at the factory gate, a firming economy, and recovering exports and imports," Xinhua reported.

Chinese economic growth is picking up steam. Economists at the Organization of Petroleum Exporting Countries reported in their market report for April that full-year growth is moderating from 6.7 percent last year to an estimated 6.3 percent, though that still outpaces most other major economies, apart from India.

OPEC economists said China posted a trade surplus of $51.4 billion, with exports from China declining 1.3 percent against a 38.1 percent year-on-year increase in imports in February.

"It was the fastest increase since early 2012, driven by strong demand for commodities from iron ore to crude oil and coal," OPEC reported.

According to pricing agency S&P Global Platts,

Please, Log in or Register to view URLs content!

is up 5.3 percent year-over-year because of the infusion into oil storage tanks, a boost in holiday travel and "robust" economic growth.

Lower crude oil prices have bruised parts of China's energy sector. Last month, China National Offshore Oil Corp.

Please, Log in or Register to view URLs content!

one of its worst performances in five years with oil and gas revenues down 17 percent from 2015.

Please, Log in or Register to view URLs content!