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 Post subject: The three things sinophobes most hate and fear
PostPosted: Thu Feb 28, 2013 6:57 am 
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The three things sinophobes most hate and fear:

The CCP, Chinese banks and SOEs.

Quote:
Beijing — which governs a population of more than 1.3 billion — has also overtaken the World Bank as the biggest lender on the planet. This provides China with a lethal financial weapon, underpinning China’s international diplomacy and global influence, and giving ‘China Inc’ — the triumvirate formed by the Communist party-state, the banks and the state-owned businesses — the ammunition needed to blow their competitors out of the water.

Urged on by China’s arrogant, intransigent and secretive political bosses, they can do all this without being accountable to anyone.

No wonder many analysts believe that the future, whether we like or not, will be shaped not in London, Washington or Moscow but in Beijing. The tiger is no longer crouching. Claws outstretched, it’s in the very act of leaping.


http://www.dailymail.co.uk/news/article-2285676/How-China-enslaving-world-Beijings-ruthless-leaders-subjugate-armies-foreign-workers-opium-plunder-resources-globe--theyve-got-Britain-sights.html

Could the Chinese people be psychoed into dismantling the CCP, Chinese banks and SOEs for the benefits of the sinophobes?

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 Post subject: Re: The three things sinophobes most hate and fear
PostPosted: Fri Mar 01, 2013 4:18 am 
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Some well known Sinologists in Asian countries, including China's allies, are predicting or hoping for the demise of the Chinese Communist Party. In fact, more than 10 years ago, doomsayers have predicted the collapse and disintegration of China / CCP. Unless CCP continues to transform itself (in fact it has evolved) to meet diverse needs other than economic growth, it is at risk of being sidelined. Want not are complacence and arrogance. That is why the party has ensured it recruits and grooms leaders who are altruistic and caring.

Many studies have found SOE to be independent or even defiant of the government policies, following restructuring and streamlined organisations accountable for profits and losses. They behave . To stretch the imagination further, many western governments would like their people to believe that private Chinese enterprises are also state-controlled and cited security reasons for shutting out competitors.

http://oneworldtalk.freeforums.org/viewtopic.php?f=17&t=4126


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 Post subject: Re: The three things sinophobes most hate and fear
PostPosted: Mon Mar 04, 2013 12:29 pm 
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Joined: Sat May 03, 2008 3:30 pm
Posts: 178
Meddy wrote:
Some well known Sinologists in Asian countries, including China's allies, are predicting or hoping for the demise of the Chinese Communist Party. In fact, more than 10 years ago, doomsayers have predicted the collapse and disintegration of China / CCP. Unless CCP continues to transform itself (in fact it has evolved) to meet diverse needs other than economic growth, it is at risk of being sidelined. Want not are complacence and arrogance. That is why the party has ensured it recruits and grooms leaders who are altruistic and caring.

Many studies have found SOE to be independent or even defiant of the government policies, following restructuring and streamlined organisations accountable for profits and losses. They behave . To stretch the imagination further, many western governments would like their people to believe that private Chinese enterprises are also state-controlled and cited security reasons for shutting out competitors.

http://oneworldtalk.freeforums.org/viewtopic.php?f=17&t=4126


The single most serious problem facing the CCP and the Chinese people is corruption in government as well in society. The corruption in both areas is inter-related.

SOEs in the socialist market economy are national development oriented. They are supported and backed by taxpayers’ money and state resources. When SOEs maximizes profit from taxpayers and turn capitalists, the country’s socialist market economy would have morphed into a capitalist one. This is what has happened to Singapore and other “miracle” economies.

In a truly socialist market economy, the SOE should function as a developer of the national economy and as a promoter and balancer to the private sector ensuring a healthy and strong economy. In the private sector of the economy, maximization of profit within the law and without serious harm to society is both legitimate and desirable. However, maximization of profit would often lead to excesses, national economic and social problems and other shortcomings. This is where it requires the balancing by the SOEs.

No, Huawei’s and other Chinese telecommunication companies’ problems with the US government are primarily about national security concerns, not trade protectionism. This is because their investments in the US would be hugely beneficial to US economy in a number of ways including good paying jobs for US workers and increasing the business competitiveness of US companies in the global markets. This would far outweigh the losses incurred by the US competitors. If the US continues to maintain this policy against the Chinese companies for a decade or two, it is likely that Africa, Latin America and other developing regions of the world would have better telecommunication services than the US.

Yes, the Chinese companies are currently not a security threat to US, but they are a potential security threat to the US. The US government knows this very well because, for many decades, they have been using US telecommunication companies in their espionage and other operations against other countries. The US government knows the potential available to the Chinese government to conduct such operations against the US. So there is no way the Chinese companies can convince the US government that they would not be potential threats to the US national security.

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lpc1998


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 Post subject: Re: The three things sinophobes most hate and fear
PostPosted: Thu Mar 07, 2013 6:41 am 
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Posts: 307
As far as this old folk can remember, when China was under a "pure socialist" economic management, many SOE failed badly and the state had to underwrite debts and closed down non-performing "public companies". Many years on, some SOE are better than others. However, it is difficult to establish if these are business mistakes or the result of corruption. Ernest to achieve targets, many SOE must have exceeded their brief and power. Managers argue that it's all for national interest but Chinese people have serious doubts.

Huawei at the moment is quite harmless. As a private company, its motives are acquiring advanced technology and making profits globally. The time will change when US and China go to war. US is applying their mentality and model onto Chinese companies and government. US prefers to let its consumers and businesses pay more and become less competitive over time.


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 Post subject: Re: The three things sinophobes most hate and fear
PostPosted: Fri Mar 08, 2013 4:36 pm 
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Joined: Sat May 03, 2008 3:30 pm
Posts: 178
Jingo wrote:
As far as this old folk can remember, when China was under a "pure socialist" economic management, many SOE failed badly and the state had to underwrite debts and closed down non-performing "public companies". Many years on, some SOE are better than others. However, it is difficult to establish if these are business mistakes or the result of corruption. Ernest to achieve targets, many SOE must have exceeded their brief and power. Managers argue that it's all for national interest but Chinese people have serious doubts.


The “pure socialist" economic management you mention is Soviet communism, which is more about politics than economics. It does not respect the market forces. Moreover, at the time, China has no access to modern management expertise and practices and modern technologies.

The socialist market economy is an invention of the Deng Administration, although it has its roots in the Japanese and the East Asian tiger economic “miracles”. Since it is a market economy, it is subjected to market forces, unlike Soviet communism.

The socialist market economy has two sectors, the state and private sectors or the socialist and the capitalist sectors. It has also proven that socialism and capitalism are not mutually exclusive.

The capitalist sector operates fully as a capitalist market economy like any capitalist market economy in the world. Maximization of profits within the law and without serious harm to society is both legitimate and desirable. This promotes entrepreneurship, venture capitalism, innovations and other risk taking ventures resulting in the creations of jobs and wealth. It involves the rest of society apart from the state sector.

The socialist sector is operated and funded by the state. Within the country, its function is not maximization of profits, but national development. It invests in necessary strategic or needed areas, often from scratch and shunned by the private sector as too risky, commercially not viable, too long-termed or simply costing too much money. Examples are investments in high-speed rails, highways, airports, development banks, mass housing, mining, energy, auto, etc. Such investments create enormous number of opportunities for private sector to grow and thrive. When the economy starts to boom, foreign investments pour in. When this economic development is sustained for long enough, there is what is known as an economic “miracle”. However, there are pre-requisites before a country could embrace such a path of economic development.

Big problems start to fester when the SOEs turn capitalist and overwhelm the successful private businesses. Capitalist SOEs behave just like any capitalist with profit maximization their main concerns. This often results in rapid increase in cost of living for the people as the capitalist SOEs abandon their role of mitigating capitalist excesses.

As an illustration, let us consider the pork business. Let us say, in the beginning, there are only private pig farmers, and there are many of them. When prices are good, the farmers tend to rear more pigs hoping to make more profits (maximization of profits). This would inevitably lead to excess supply sometime in the future. When prices plunge, the farmers would rear less pigs and cause future shortage of the supply of pork in market and high prices.

To avoid consumer anger when pork prices are high and the sufferings of farmers when they go bankrupt or suffer heavy losses when prices plunge quickly, the government introduces a SOE to stabilize the pork market. The SOE would cut back the number of pigs it is rearing to off-set the increase in the number of pigs the private sector farmers are rearing when prices are high and increase the number pigs it is rearing when the farmers cut back the number of pigs they are rearing when prices are low. This kind of operations would bring price stability to the pork market. Moreover, since the SOE is not maximizing profits from the pork market, it could share its research and development advances with the farmers and help them modernized their pork production and management. So a socialist SOE’s performance should not be measured against profit performance, but on its performance in the contribution to the national economy.

Of course, capitalists do not like the socialist SOEs because the socialist SOEs prevent them from maximizing profits by price and market manipulations leaving them with tough options like increasing productivity with better management and technologies.

So capitalist market economists would come out with numerous reports highlighting the socialist SOE’s “capital inefficiency” with comparison to the profit performance of capitalist businesses which primarily aim is profit maximization. The crucial fact that the socialist SOE purpose is national development and not maximization of profits is ignored or even suppressed.

On the other hand, when SOEs, whether socialist or capitalist, make money, the capitalist market economists would condemn them as state monopolies indulging in unfair competition. These capitalist market economists speak both ways with the two corners of their mouths.

Another way of transforming a socialist market economy into a capitalist one is by a process called “privatization”. This is achieved by transferring ownership of successful state enterprises into “private hands”. In reality, it is a transfer of the ownership of these enterprises from the people to capitalists, often in corroboration with powerful foreign capitalists. To make the matter worse for the people, the capitalists would then use these privatized former SOEs to maximize profits from the people and then the capitalist market economists would point to the massive booty looted from the people as evidence of the undisputed “capital efficiency” of private businesses. The dominant or even monopolistic attributes of these enormous privatized former SOEs are conveniently overlooked. The preferred sectors that the capitalists would covet are those in essential services and production such as transportation, finance, energy, food, housing and others. These are good sectors to maximize profits with dominant or monopolistic companies.

Of course, SOEs, both socialist and capitalist, to a lesser or greater extent, have issues regarding corruption, nepotism, mismanagement, management incompetency and others, but these are separate matters that should be researched and improved on or mitigated. They should not be excuses to hand over the SOEs to the capitalists for maximizing profits from the taxpayers.

Socialist SOEs in the socialist market economy are able to create real and productive jobs for the people by investing in areas that would enhance the economic capacity of the country or to prevent economic loss. Employment, after all, is the mother of all human rights, for people without a decent income would have many of their other human rights rendered academic or inoperative.

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lpc1998


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 Post subject: Re: The three things sinophobes most hate and fear
PostPosted: Tue Apr 23, 2013 3:28 pm 
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Joined: Sat May 03, 2008 3:30 pm
Posts: 178
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This Sinophobe is so enthusiastic over the possible demise of China’s SOEs and banks:

Consumer Meteor Strikes China's State Dinosaurs

By TOM ORLIK

Quote:
A common worry about China's economy is that vested interests in the state sector will block reforms needed to raise household income and consumption. State-owned enterprises are certainly influential. But new technologies and demanding consumers can make them look less like all-powerful giants, and more like ungainly dinosaurs.

In telecommunications, for instance, popular web-based messaging systems like Tencent's 0700.HK +0.79% WeChat are a major challenge to state-owned China Mobile0941.HK -0.61% . WeChat has more than 300 million users, sending voice and text messages over the web.

Popular web-based messaging systems, such as Tencent's WeChat, are a major challenge to state-owned China Mobile.

The U.S. experience suggests carriers can be big losers when the likes of WhatsApp takes hold. In the first quarter of 2013, China Mobile's profits grew just 0.3% year on year; the company said new technologies are eating into the traditional communications business.

Something similar is going on in banking. In the past, China's savers had little choice beyond bank deposit accounts that offered low returns. Now, the rapid growth of high-yield investments known as wealth-management products, or WMPs, means savers have options to move their money around.

Assets under management in these products have grown from almost nothing a few years ago to about 7.1 trillion yuan ($1.2 trillion) at the end of 2012, denting deposit growth. And while the big four state banks control 49% of deposits, their share of funds in wealth-management products is only 38%, according to Bernstein Research. Also, because WMPs offer returns of about 4.2% a year—almost a full percentage point higher than a one-year time deposit—banks' margins from WMPs are lower too.

The rise of online messaging and WMPs shows that even without government-led reforms, innovations in technology and competitive pressures are starting to redistribute the benefits of China's growth. The result should be lower profits for the state sector and higher household income and consumption.

It isn't all bad news for China's state-owned firms. Rapid adoption of 3G, driven in part by the appeal of WeChat and similar applications, is helping telecom firms sell more data services. Also, regulators could force messaging services to pay a fee to the telecom companies. For the banks, wealth-management products are a new source of fee income.

Chinese state-owned enterprises that have generated huge profits under the existing system might be keen to stymie reform. But innovative private firms and demanding consumers aren't willing to wait.


Related Post:

Sucking the blood out of the SOEs

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