Trade War with China

Equation said:

As for houses, China's government has always implemented policies to stop the purchasing of property as a way for the rich elite to become richer and the common man to be squeezed out. Every person has a property limit that he cannot exceed and transfers to family are heavily scrutinized. Beijing wants Chinese real estate to be purchased as living quarters so more people can prosper in cities.

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Anlsvrthng said:

The limits are very wise, it preventing the rich to loose money on properties, and only the middle class duped into the housing casino.

The rich is doing what he can best: buying plots, making flats that can be sold to the losers on inflated prices.
Oh, and provide mortgages.

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Anlsvrthng said:

So , you saying that the Chinese making phones/ toys and many other consumer goods in the count of million man-years , and entitled to buy USA destroyers in the cost range of thousand man-years ?

Or you mean the Chinese government wants to buy Chinese destroyer from the money of the USA government ?

HOW ?

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Equation said:

8 out of 72? That's really very very good. Do you know how many countries out there are completely irresponsible with money? You can't deal with them without them getting into debt "traps" and it's never anyone's fault except their own. If they see money, it's gone and it's not to an investment. China's OBOR is as mutually-beneficial as it gets. China offers generous loans that these countries eagerly accept in order to improve their own infrastructure. They saw the terms, they agreed to them, they promised that these financial commitments would not overwhelm them, and China let them have what they asked for. If this isn't mutually beneficial then I guess your definition would have to be China holding their hands and micromanaging their accounts to make sure that every step went well, in which case they'll call China condescending. And if that doesn't work, then China should just give them endless cash without the need for repayment, right? That's mutually beneficial, right? Cus that would be the only place to go from what's already been given to them.

You're the only person I've heard call infrastructure investments short-sighted. These investments are the definition of long-term plan. You're the one who's short-sighted, abandoning long term projects and future benefit because of near-term financial difficulties. Blinder than a bat with strep throat, I'd say. And you're the one who needs to wake up, to the simple fact that everyone is responsible for their own finances. All loans were offered as an opportunity, and they accepted; nothing was forced on them. If they cannot live up to the terms that they willfully entered into then the only fault lies with them and they can lose trust in their own financial management. If they lose trust in China when China has fulfilled all parts of its side of the contract, then they can be swallowed by their own irrationality. Nothing can be done about that.

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Ultra said:

NO.


8 is serious debt trap and 23 are in danger of falling into it. That's 1 in 3 that China scammed into giving up their sovereignty.

You can argue they are irresponsible with their own finance or they are all illiterates who can't read their contract....
But the fact remains - now China is being perceived as PREDATORY. You only need to look at various leaders like Malaysia's PM, the greeks, even Pakistan now threatening to abandoning their contract. Now that's a lot of people in those nations now that think of China in very negative light. You can build as many Confucius Institutes as you want but it will not counter those negative perception. The net effect will be people stop trading with China.

As for your second paragraph, I think you misunderstood. I never call infrastructure investment short-sighted.
What I refer to as "short-sighted" is Chinese leadership's current predatory practice of structuring the loan so poor nations cannot service them without giving up their sovereignty. That's short sighted and create massive amount of negative perception and burning away all the good wills and along with it bridges (of friendship).

They should have structure the loans so these poor nation will be able to service them. Not falling into debt trap.

And even just 1 nation that falls into debt trap out of 72 is already too high. Let along 23.

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China's foreign ministry on Friday refuted a travel advisory issued by the United States, and said China always welcomes foreign citizens and protects their lawful rights.

The remarks came after the U.S. State Department updated a travel advisory warning, saying visitors to China are at risk that the Chinese government may take exit bans to prohibit them from leaving the country.

"China always welcomes foreign citizens, including U.S. citizens, to visit China, and protects their security and legal rights, including freedom of entry and exit," Foreign Ministry spokesperson Lu Kang told a press briefing.

"Of course, foreign citizens in China should also respect and abide by Chinese laws," Lu said.

Regarding a very slight number of foreigners suspected of violating laws and committing crimes in China, the Chinese authorities have always impartially handled cases in accordance with the law, and safeguarded their legal rights and interests, he added.

"Frankly speaking, the travel advisory issued by the United States does not hold water," Lu said.

From January to November 2018, 2.3 million people traveled from the United States to China, said the spokesperson, adding that this meant 70 out of every 10,000 Americans visited China.

"This outnumbers the proportion of Chinese people visiting the United States," Lu said. He said such figures could answer the question of whether China was safe for foreigners.

"We hope the U.S. side will make more efforts to promote exchanges and mutual trust between Chinese and U.S. people rather than the opposite," he said.

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Equation said:

Therefore as a result China doesn't have the housing bubble burst and debacle like the US did back in 2008 that requires the bail out from the tax payers in TRILLIONS of DOLLARS. It takes a strong leadership and good government to prevent this from happening. The CPC is watching closely on every facet of the Chinese economy and banking.

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Equation said:

So how do you answer his question without reading the entire content of his previous comments? Or do you mean the USA government bonds borrows money from China for free and NOT pay any kind of interests? That don't make sense. Tam was using the interests money that China earns from the purchasing for treasury bonds and other forms of borrowing is enough to purchase a few naval ships as an example. I don't know why you did not get that.

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Ultra said:

BAHAHAHA. Dump the US Treasury.
DUMP THE US TREASURY you say.

That would actually be great for the US. Once China dumps all of the US Treasury bonds and the bond market collapses, US Government would then buy back those treasury at discounted price, that means China ABSORBS THE LOSS while US GAINS WITHOUT PAYING FOR THE LOSS.

DUMB ASSES.

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gelgoog said:

They can simply start collecting property tax in the major cities for families with more than one house for example. This would also provide extra funding to Chinese provinces so I think most of them would be up for it. Since the state also owns the electrical power companies and utilities it would be rather trivial to analyze and cross-reference if the house is occupied or not. If loan mortgages start to go under the Chinese government can simply depreciate the currency by inflation and make the mortgages easier to repay. i.e. basically a debt haircut. However I doubt it will come to that.

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