Chinese Economics Thread

[sunnymaxi]

Great opportunity for domestic brands to take market share. Just impose a local tax based on % of manufacturing overseas.

HP has already decided in 2024..

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China was actually waiting for this opportunity. this is the reason why we are seeing the tough stance of China in this trade/tariffs war. we have the big example here, Apple. China hardly get any real value because Apple got all core components from foreign OEMs.

China's 500 billion USD exports to USA is all nothing but Foreign brands assembling in mainland. Huawei/BYD all are banned. so we barely get anything valuable in returns..

China still a huge assembling base for foreign OEMs. China wants more of its local brands and components manufacturers. so Trump gave us the golden opportunity. we have now enough Local High Tech companies to take over these foreign OEMs in mainland and global south.

tphuang sir written very well here. please read this. China has entered in its Third development phase ''Design and Core IP''

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[Mt1701d]

Great opportunity for domestic brands to take market share. Just impose a local tax based on % of manufacturing overseas.

There is no need to react to everything minor thing, domestic brands are probably already gaining market share anyway.

I am actually surprised HP and Dell haven’t done it earlier and in a much greater capacity. Both, HP and Dell derives a good portion of their revenue from large corporate contracts, so they can scale far easier than others.

There is no need to push them out and lose the jobs they are still providing. We are not playing 4D tic-tac-toe like the US or whatever game India had been playing randomly applying taxes on foreign companies.

 

[Eventine]

There is no need to react to everything minor thing, domestic brands are probably already gaining market share anyway.

I am actually surprised HP and Dell haven’t done it earlier and in a much greater capacity. Both, HP and Dell derives a good portion of their revenue from large corporate contracts, so they can scale far easier than others.

There is no need to push them out and lose the jobs they are still providing. We are not playing 4D tic-tac-toe like the US or whatever game India had been playing randomly applying taxes on foreign companies.

Sometimes the industry needs a gentle push to escape the inertia of existing habit & to go in the right direction. China wants more of its local brands and components manufacturers to prosper; so it should take advantage of the current geopolitical climate to replace more US companies, particularly those that survive off of branding. The jobs can be moved to domestic companies.

 

[Mt1701d]

Sometimes the industry needs a gentle push to escape the inertia of existing habit & to go in the right direction. China wants more of its local brands and components manufacturers to prosper; so it should take advantage of the current geopolitical climate to replace more US companies, particularly those that survive off of branding. The jobs can be moved to domestic companies.

I understand and agree with what you are getting at, all I am saying is there is really no need to do anything and play with fire like the US has done.

Let consumer choices take this one, while officially have China remain perfectly friendly to foreign companies. There is no downside to have them continue to hire and train people for the domestic companies. Why ruin a good thing, even if it’s only a small gain, it’s still a gain.

 

[sunnymaxi]

I understand and agree with what you are getting at, all I am saying is there is really no need to do anything and play with fire like the US has done.

China didn't do anything with these foreign OEMs.. in fact encourage them to invest more. remember last month Xi jinping met with those CEOs.

China will continue to follow international rules.

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[escobar]

China is rumored to be considering exclusions for its retaliatory tariffs on the US.The exclusions would cover more than $46 billion in imports and at least 28% of China's imports from the US, based on 2024 figures.

 

[Moonscape]

China is rumored to be considering exclusions for its retaliatory tariffs on the US.The exclusions would cover more than $46 billion in imports and at least 28% of China's imports from the US, based on 2024 figures.
View attachment 150635

What is the ultimate source for this? Unless it's from an official Chinese government statement, or at least someone very well connected, it reads like American wishful thinking.

 

[Overbom]

Good stuff here

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The 2025 negative list for market access cuts the number of restricted items from 117 in the 2022 edition to 106 now, according to a notice issued by the National Development and Reform Commission (NDRC), the top economic planner, on Thursday.

The new list significantly lowers entry barriers. For instance, the seal engraving business has shifted from a licensing to a filing system, while sales of security products for computer information systems now adhere to a testing and certification program based on mandatory national standards.

Additionally, certain restrictions in sectors including new telecom services, TV drama production, pharmaceutical distribution and forest seed imports have been relaxed, according to the NDRC.

Meanwhile, local regulations on transport logistics have been scrapped, which will help remove regional market barriers. Also, local management of shipbuilding, liquor trading and commodity exchanges has been canceled, replaced by national market access guidelines.