Miscellaneous News

_killuminati_ said:

You mean like Pavlov's dogs?


RR still has significant market share in engine industry and likely isn't dropping much anytime soon.

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It is one segment with low employee count. Emirate telling them to improve reliability.

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Rolls-Royce was particularly hard-hit during the pandemic, as revenue from widebody engine maintenance dried up. It shed 7,000 staff out of a workforce of 19,000 and changed CEO, but returned to profitability in 2024. Its engines power 33% of the world’s widebody fleet, and have 46% of the order backlog for widebodies.
Over the years, Rolls-Royce has developed many of the engines that have shaped modern aviation as we know it. Its Trent engine series has powered everything from the Airbus A380 to the Boeing 787, and its Trent XWB is the exclusive powerplant for the Airbus A350. The company even manufactured the engines for Concorde.

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Europe is a chicken with it's head cut-off and they don't know it. They're trying to hang onto the only thing they have which is the romantic bullshit of their culture that they pushed while raping the world. That's why they're losing out and are being left behind in everything else that's moving and shaking the world today. Just look at that ugly inbred lot of the British royals. I read that the majority of the tourism industry of England is based around the royals. Look at their history and what they did and they're even uglier. The false romance is the only thing giving them attention. The royals don't inspire people looking at the future. Macron just advocated stronger EU action against China and now he's pushing for China to be at the next G7 meeting? Their actions are not intellectually thoughtful. It's more out of desperation without thinking.

zbb said:

It's hilarious that US media and "experts" constantly talk about how deflation in China is a sign of China's economic collapse while totally forgetting about the consistent deflation that accompanied the meteoric rise of US economic and industrial power in the last third of the 19th century.

At the end of the American Civil War in 1865, the US was a relative economic and industrial backwater compared to the leading European nations. By 1900, the US had became the unquestionably dominant economic and industrial power in the World.

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(negative inflation is deflation) and cumulative deflation of 48.5%. The US literally deflated its way to becoming an industrial super power.

The deflation that China is experiencing now is similar to what the US saw from 1865 to 1900. Lower prices due to rapid increase in productivity and efficiency is very much a good thing for an economy.

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I've been saying it for a while now, deflation by itself is inconsequential. What matters is what the deflation signifies. Japan's problem wasn't deflation, it was a lack of investment. Money gets pumped into the economy and immediately gets converted into foreign currencies to buy foreign debt for the carry trade because no one wants to invest in Japan. That's their problem. They have inflation now and their economy still sucks because deflation was not the cause of their malaise but merely a symptom. Inflation from rising input costs will not make anyone more willing to invest in Japanese industries.

plawolf said:

Right on cue, European idiots gift wrap another escalation step for China for free.

China can rightly point to this interview as clear evidence of the Dutch having not learnt their lesson and showing zero contrition, so the punishment needs to be increased.

It’s kinda surreal that China is tapping the breaks as it doesn’t want to curbstomp EU manufacturing so hard so early, but the Dutch are strapping on banzai headbands and daring China to do it.

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IMO many people are missing China's grand strategy. If people understand where Xi is coming from, all the moves China has made in the past few years would make sense.

1) It starts with China's assessment that the West is declining and China is rising. To "win", China just has to maintain the current trajectory and outlast the West.

2) The current trajectory will inevitably cause some hardship in the West and lead to push back. As such, China needs to be prepared for a full-scale, full-spectrum (financial, industrial, military, informational, everything) conflict against the entire West (that's the US and all its allies). This is not so that it has to fight and win one, but to prevent a full scale conflict in the first place. Think of it like a MAD.

3) To accomplish this, China has worked to ensure full-spectrum resilience. RMB internationalization, CIPS, popping RE bubble, BRI, tech indigenization, preventing outsourcing of "older" industries, military/nuclear build out, GFW, etc. all needs to be looked at in this lens rather than the narrow lens of economic or territorial gains.

4) The key to victory is point number 1, i.e. maintaining the current trajectory. If an actual full-scale conflict breaks out, victory is no longer assured and there's a high likelihood of there being no victors at all. As such, the response to all provocations in general is to demonstrate the ability for MAD and nudge all parties involved to maintain the status quo.

Use these points to guide your analyses and everything will make more sense. Why doesn't China just nip the European manufacturing right now? Because it's well on track to nip itself. They're not gonna find an alternative to Nexperia China in weeks or months or in all likelihood ever before the European auto industry go bust from a general lack of competitiveness. China just needs to demonstrate that it can cause the destruction now, and let the Europeans pressure each other so the day of their destruction can come later rather than sooner. Sowing disunity is more important than causing short term destruction. One leads to a hastening of the current trends which favor China, the other can lead to a full scale conflict for which history has proven there are always many unknowns.

_killuminati_ said:

If Euro auto sector collapses, who will fill the void in EU?

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I'm pretty sure that Nexperia's chips could be substituted by firms like STM and Infineon, but this would be a very painful and laborious process. The Nexperia fiasco might cause a severe recession if China wanted to apply the pain, but it's not an existential pain. Europe, US, and Asia can find alternatives.

Like I said, this is the sort of thing that's best kept in a backpocket to compound on top of other sanctions if necessary.