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China forbids foreign access to +100 sectors of CN economy

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China forbids foreign access to +100 sectors of CN economy

Postby billz » Fri Nov 03, 2017 1:50 am

"China's central government limits or forbids foreign investment or foreign access to over 100 sectors of the Chinese economy," said Ross. "Much of this protectionism is to ensure Chinese companies do not have any real competition with the belief this will allow them to build the necessary skills and resources to be competitive on a global stage."

https://www.cnbc.com/2017/11/02/china-h ... ntary.html
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Re: China forbids foreign access to +100 sectors of CN econo

Postby Liang1a » Fri Nov 03, 2017 1:52 pm

But the real growing strength comes from companies that are quietly building businesses focused on having an ongoing global impact, rather than thinking beyond current product iteration.


China needs to break the mindset of selling into the global market and concentrate on expanding China's own domestic economy which will ultimately be as big as 1.5 times of the combined rest of the world. Therefore, China must accelerate R&D to advance new and more efficient technologies. But it should change the mindset of the last 40 years or so of making more money from the global market.

China's export business only has the illusion of being profitable while in fact it is draining China's resources and energy and squandering its labor and capital. China's exports are "profitable" only because the government subsidizes the manufacturing/exports by raising the exchange rate from the 3 yuan per dollar real PPP rate to the excessively high rate of 7 yuan per dollar. The extra 4 yuan per dollar means that for $2 trillion of exports, the manufacturers/exporters get an extra 8 trillion yuan of undeserved subsidies. This has many insidioius effects on China's economic growth by stymieing domestic growth, raising inflation, draining China's capital, etc.

Obviously, it is not a bad thing in itself to export China's excess production. If a Chinese coompany can produce 100 million cars and can only sell 80 million of them inside China, then obviously it can make more profits by selling them in the global market. But if exporting these cars causes inflation inside China, then it is obviously not good for the national economy. Therefore, the proper way to streamline China's economic development is to eliminate the invisible and insidious subsidies to the manufacturers/exporters by cutting the exchange rate to the PPP value of 3 yuan per dollar for the exporters while maintaining the 7 yuan per dollar rate of 7 yuan per dollar. This will then eliminate the subsidies and force the exporters to compete globally through superior qualities. In the end, the Chinese manufacturers will produce the highest quality products to benefit China's own domestic consumers. And having satisfied China's own consumers, the Chinese manufacturers can then sell their excess productions overseas. And by producing the highest quality products, the Chinese manufacturers can be the most competitive globally based on quality and not based on undeserved subsidies.
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Re: China forbids foreign access to +100 sectors of CN econo

Postby Liang1a » Fri Nov 03, 2017 7:50 pm

billz wrote:"China's central government limits or forbids foreign investment or foreign access to over 100 sectors of the Chinese economy," said Ross. "Much of this protectionism is to ensure Chinese companies do not have any real competition with the belief this will allow them to build the necessary skills and resources to be competitive on a global stage."

https://www.cnbc.com/2017/11/02/china-h ... ntary.html


I've said that China needs to ban all foreign businesses making and selling goods and services in China. China also needs to terminate all joint ventures which have turned the Chinese partners into nothing more than mere fronts. Too many Chinese partners of joint ventures have lost their ability to do independent R&D and are being used as fronts to sell foreign products. The biggest example of this is the Chinese car companies which have lost all ability to do R&D. Today, there are no totally indigenous Chinese car companies. Even Geely is relying on Volvo to develop its car technologies. This means Geely is wasting money to support foreign scientists and engineers to develop China's car technologies.
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