Miscellaneous News

gelgoog

Lieutenant General
Registered Member
Xiaomi opened a factory there probably because India has trade tariffs on electronics imports.
Remember that Xiaomi started out as a lower cost alternative product and I think their market share in India is pretty large.
The factory was supposed to make them more competitive in a market where the average consumer does not have a lot of money to spend on consumer electronics.

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Abominable

Major
Registered Member
There definitely needs more conflicts and arguments within Europe.

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In the latest round of a dispute over Nazi compensation claims, Germany wants to protect its properties in Rome from seizure

Germany is suing Italy in the top UN court in the latest round of long-standing dispute over Nazi compensation claims, the International Court of Justice (ICJ) revealed on Friday.

In its application Germany claims that Rome has continued to allow Nazi war crime victims to file requests for compensation from Berlin, even though in 2012 the ICJ ruled that it is illegal. In the claimant’s view, by doing so Italy “has violated, and continues to violate, its obligation to respect Germany’s sovereign immunity.”

Germany therefore argues that Rome must “take effective steps” to prevent such “violations” from happening in the future, to provide all relevant guarantees, “to make full reparation” for any injury caused, and to cover “any financially assessable injury resulting from proceedings conducted.”

Berlin says that it is aware of at least 25 Third Reich crimes-related cases which have been brought against Germany in Italian domestic courts since the 2012 court decision. Some of the proceedings resulted in rulings ordering Germany to pay compensation. To enforce the rulings, Italian authorities have been trying to seize four German state-owned properties in Rome, including buildings housing the German Archaeological Institute and the Goethe Institute.

Germany explained that despite confirmation of the non-commercial status of these properties by the Italian government, the Court of Rome has proceeded with the enforcement process and on 25 May 2022 will announce its decision on whether to put the buildings up for sale at a public auction.

“Under the circumstances, and as further detailed below, Germany is now compelled to seek provisional measures from the Court in order to safeguard its rights against irreparable harm,” Germany’s application states.

The dispute between Germany and Italy over compensation claims for Nazi crimes started in 2008 when Berlin was ordered by the highest Italian court to pay approximately 1 million euros to the families of nine victims, killed by the Germans in 1944 in Tuscany.

Germany argues that since the end of the World War Two and Nazi regime’s defeat it has paid billions of euros to the countries affected in accordance with peace and reparation treaties.

No date was immediately set for hearings at the ICJ. Rulings by the United Nations court, which normally considers cases for years, are final and legally binding.
This sort of thing is inevitable sooner or later. There was a big push recently for Poland to compensate their holocaust victims, they said that could cost them $300 billion.
 

MrCrazyBoyRavi

Junior Member
Registered Member
From an economic point of view, I don’t know why we see people in twitter celebrating trade deficit with US increasing. Western nation basically froze 400B of Russian foreign currency reserve in an instant. They won’t hesitate to freeze 4T of Chinese foreign reserve in a blink of an eye during conflict. Atbest Moody and S&P will downgrade US bonds from AAA to AA.
If you owe a bank 10,000$ its your own problem,
But if you owe 10,000,000$ to bank, then its your Bank’s problem to get back money.

Basically Western nation enjoyed a high standard of living for last 25 years issuing cheques they didn’t intended to pay at all. While Chinese boomers saved money working hard 24/7 that they are uncertain to cash out when they want.
so in a way China has been taken economic hostage by western power. You can’t buy any western companies or technology due to laws. Neither can you dump all those treasury bills to other buyers for loss, as there is no other big buyers as such.

That’s why trades should be balanced. This huge trade imbalance will definately be giving sleepless night to economic planners. And China isn’t even capable militarily to collect its debt. I wonder what CCP economic planners are thinking right now.
 

In4ser

Junior Member
From an economic point of view, I don’t know why we see people in twitter celebrating trade deficit with US increasing. Western nation basically froze 400B of Russian foreign currency reserve in an instant. They won’t hesitate to freeze 4T of Chinese foreign reserve in a blink of an eye during conflict. Atbest Moody and S&P will downgrade US bonds from AAA to AA.
If you owe a bank 10,000$ its your own problem,
But if you owe 10,000,000$ to bank, then its your Bank’s problem to get back money.

Basically Western nation enjoyed a high standard of living for last 25 years issuing cheques they didn’t intended to pay at all. While Chinese boomers saved money working hard 24/7 that they are uncertain to cash out when they want.
so in a way China has been taken economic hostage by western power. You can’t buy any western companies or technology due to laws. Neither can you dump all those treasury bills to other buyers for loss, as there is no other big buyers as such.

That’s why trades should be balanced. This huge trade imbalance will definately be giving sleepless night to economic planners. And China isn’t even capable militarily to collect its debt. I wonder what CCP economic planners are thinking right now.
It's less trade deficit and more about market share instead. While the dollar itself may be becoming worthless, it is nonetheless a great metric to use for data analysis.

Spending more and more dollars on another country's goods and services, while another country buys less and less shows the power dynamic between the countries. It indicates that the US is becoming more and more reliant on Chinese manufacturing and technology and America's counterparts are becoming less dominant in the Chinese market.

That dependency on Chinese companies means China can use its position to control pricing and establish standards for its customers. What's the US going to do? Cut itself off from China? It's like a person refusing to go to Amazon/Walmart and buying from the Dollar Store instead as an alternative. They are going to have a limited selection and have more difficulty scaling it. Similarly, while the US can source from Vietnam or Mexico for cheap manufacturing, they're not as competitive overall as China because of the sheer breadth and depth China offers.

At the end of the day, who's at the greater loss? Walmart that loses one of its biggest customers, or a customer who cannot buy from Walmart? It's not about money but rather its about control.
 
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solarz

Brigadier
I am not at all familiar with the majority of the PLA military hardwares nor am I well versed in knowing and understanding the qualitative nature of the PLA in today's day and age. However because of poor perception about anything made in China as just bad or low quality this tag has also been carried over towards it's military hardware products in all services, especially the criticism leveled towards it's exported products. This article pretty much accused Chinese/PLA hardwares as garbage. I understand that the article itself was written by an Indian person but is what he's alleging true?

Beijing had gifted two 1970s era Ming class Type-035G submarines to Bangladesh valued at $100-million each in 2017. These were later re-inducted by the Bangladesh Navy as BNS Nobojatra and BNS Joyjatra.

However, both the platforms have been lying idle due to technical issues and could not be used as intended. The year 2020, witnessed China gifting Dhaka with two Chinese 053H3 frigates — BNS Umar Farooq and BNS Abu Ubaidah.

According to sources, the Type-053H3 frigates gifted to the Bangladesh Navy have defects in fire control system as well as in the helicopter fuelling and defueling system.

Defects have also been discovered in the gyro compass. The frigates were supplied by Poly Technologies Inc. Poly Technologies is a subsidiary of China Poly Group Corporation, a trade company with headquarters in Beijing, which deals with missiles and other military hardware.

With regard to naval platforms built by China Shipbuilding and Offshore International Co. Limited, issues that have surfaced are poor metallurgy, lack of spare part support, machinery failure, defective radars and poor armaments.

Defects have also been detected in basic trainer aircraft and K-8 aircraft for the Bangladesh Air Force and short-range air defence system for the Bangladesh Army.

With the money quote: "The world over, reliability and quality of defence equipment are known as the true mark of a nation’s technology, manufacturing ability and maintenance practices."

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Complex machines like subs and warships require constant maintenance. Anyone who thinks those weapon systems would just work out of the box like a child's toy is an idiot.
 

siegecrossbow

General
Staff member
Super Moderator
From an economic point of view, I don’t know why we see people in twitter celebrating trade deficit with US increasing. Western nation basically froze 400B of Russian foreign currency reserve in an instant. They won’t hesitate to freeze 4T of Chinese foreign reserve in a blink of an eye during conflict. Atbest Moody and S&P will downgrade US bonds from AAA to AA.
If you owe a bank 10,000$ its your own problem,
But if you owe 10,000,000$ to bank, then its your Bank’s problem to get back money.

Basically Western nation enjoyed a high standard of living for last 25 years issuing cheques they didn’t intended to pay at all. While Chinese boomers saved money working hard 24/7 that they are uncertain to cash out when they want.
so in a way China has been taken economic hostage by western power. You can’t buy any western companies or technology due to laws. Neither can you dump all those treasury bills to other buyers for loss, as there is no other big buyers as such.

That’s why trades should be balanced. This huge trade imbalance will definately be giving sleepless night to economic planners. And China isn’t even capable militarily to collect its debt. I wonder what CCP economic planners are thinking right now.

Forex can be used to trade for food and energy, both of which are becoming scarce.
 

Abominable

Major
Registered Member
Forex can be used to trade for food and energy, both of which are becoming scarce.
And commodities. Which is what has been happening for the past year. But there comes a point where there's only so much oil/gold/aluminium etc you can store or make use of. Ultimately there will be a need to move away from an economy based on exports to the west because soon it'll just be sending stuff to America for free.

A similar thing sort of happened on a smaller scale between Germany and Greece that lead to the financial crisis. Germany was sending Greece billions of euros of cars and other high end manufacturing products, and Greece was sending back paper money.
 

BoraTas

Major
Registered Member
Very interesting. Saudi Arabian elites are selling their assets in the USA and Europe. I really wonder if America's and Europe's arbitrary seizures of Afghan and Russian assets have anything to do with this, especially considering that Saudi Arabia started cooperating with China more.
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