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Written by Dr. Leon Tressell exclusively for SouthFront
Last week the US and China finally signed phase 1 of their long awaited trade deal. Despite Trump’s hyperbole financial markets reacted in a rather muted way to the ‘deal of the century’. The continuing inflation in stock markets is due to the QE4 programme of the US Federal Reserve that’s pumping hundreds of billions into the short term debt (repo) market and the purchasing of $60 billion of US Treasury debt every month.
Nearly 2 years after he launched the trade war with China has Trump finally got the deal he originally wanted? Definitely not.
The current deal does not address any of the major structural issues that the US wants China to make concessions over. Those thorny issues seem insurmountable unless China is willing to make major compromises over its national sovereignty reminiscent of the unequal treaties it was forced to sign with Western imperialism during the 19th and 20th centuries.
The second round of the trade war will be much more protracted and problematic and is likely to greatly exacerbate tensions between the two largest economies in the world pushing their relationship to breaking point.
Having said this, Trump has extracted a series of concessions from the Beijing government led by the misnamed Chinese Communist Party (CCP). Effectively, China has conceded the first round of the trade war to the US. giving Trump’s re-election prospects a major boost.
This begs the question: why has China signed a trade deal, that makes so many concessions, with a country that is unrelentingly aggressive towards it?
The phase 1 trade deal will also create domestic problems for the CCP leadership which has played the nationalist card for all its worth over the last year and ramped up its anti-American propaganda claiming that it would,”fight to the end”. The CCP leadership is in danger of boxing itself into a corner having raised public expectations that it would resist any trade deal which stifled China’s economic prospects.
The Chinese population has a long historical memory of concessions made by past governments to the West. It will be interesting to see how the Chinese people react to the compromises made by their government in the ‘phase one’ trade deal at a time of slowing economic growth. In 2019 China’s economy grew at its slowest pace in three decades. This is a major concern to the government which is acutely aware that slowing economic growth poses a threat to social stability and the continued rule of the one party state.
Vincent Kolo a journalist based in China makes the observation that the trade deal:
“… is very likely to be panned as an “unequal treaty” and an American victory by netizens in China. China’s state media has been unusually defensive and restrictive with its coverage of the deal. The normally bombastic Global Times (a government mouthpiece), which in December insisted the rolling back of allUS tariffs was the bottom line for reaching a phase one agreement, ran an editorial after the deal was signed admonishing its readers that debating “about who had lost or gained is shallow.”
“We urge individuals and forces to exercise some restraint in their nit-picking of the agreement and bad-mouthing future trade negotiations,” it wrote.
Can President Xi’s government successfully sell the trade deal as an achievement that will benefit China’s economy? Time will tell. Let us look at the series of concessions that China made to the United States before considering the domestic and geo-political implications of this trade deal.
Concessions made by China in the ‘Phase One’ trade deal
The mainstream media has widely reported the $200 billion of agricultrual goods, manufactured goods, energy products and services that China has agreed to purchase during the 2020-2021 period.
The ability of China to purchase this amount of American imports has been questioned by many financial experts, never mind the fact that the EU is threatening WTO legal action stating that the phase 1 deal violates free trade.
Under the terms of the phase 1 deal China’s exporters will still be suffering under $360 billion worth of US tariffs that cover two thirds of all goods that Americans buy from China. Conversely, these tariffs will also hurt American shoppers who will pay more for their consumer goods and cut into the profits of many US importers.
If we get into the meat of the 96 page agreement we shall see how the concessions that China has made go much further than these headline catching figures.
Counterfeiting, copyright and intellectual property theft
One of the earliest sections of the agreement deals with counterfeiting, copyright and intellectual property theft for which China has received a bad reputation. The agreement specifies that China will take a whole host of measures to deal with these issues. These measures range from a substantial increase in the number of customs personnel and raising legal penalties to significantly increasing the number of enforcement actions. The agreement puts no obligations on the United States as it merely acknowledges that existing U.S. measures afford effective enforcement.
Agricultural goods
In the politically charged section on trade in agricultural goods we see how the U.S. has successfully pressured China to lower food standards in many areas. In section 3-9 China is now committed to adopting maximum residue limits for growth hormones zeranol, trenbolone acetate, and melangesterol acetate in American beef. These growth hormones in beef have been banned by the EU as potential risks to human health.
China has agree to lift its ban on American pet food containing ruminant ingredients and agrees to no longer carry out Polymerase Chain Reaction (PCR) testing (i.e. DNA testing) on all U.S. pet food products containing ruminant ingredients. However, one recent scientific study into the importance of PCR testing in food safety noted that there is a:
“complex widespread disease of the small grains (wheat, maize, or barley) … Fusarium head blight (FHB) produced by the Fusarium sp. infection. Besides the considerable loss of yield, it has the ability to produce mycotoxins which are harmful to human and animal consumer.”
More controversially, is the agreement regarding Agricultural Biotechnology. According to section 3-20 China has a year in which to produce an assessment procedure for approval of American food derived from genetically modified microorganisms.
This could prove difficult for the Chinese government which has failed to persuade its people of the merits of GMO foods. In a country plagued by food scandals that have produced violent protests it is no surprise that a nationwide survey in 2018 revealed that 46.7% of people disapproved of GMO food. This is despite government propaganda campaigns telling people that GMO food is safe to eat.
The Chinese government, nervous of public feeling on this emotive issue, has even allowed government organizations to issue duelling official narratives on the safety of GMO food. According to Eugene K.Chow of The Diplomat there is, ‘anti-GMO fervour, spread by everyone from popular TV personalities to Maoists and NGOs like Greenpeace.’
Besides this public distrust of GMO food China has its own soybean industry. Its largest producer is based in the north east of the country in Heilongjiang province. Chinese soybeans are GMO free and may be seen by the public to be preferable to GMO soybeans from the United States.
Financial Services
The most perilous part of the phase 1 trade deal is the section concerning the further opening up of China’s financial markets to foreign capital. Over the last 10 years China has been very cautious in reducing capital controls and allowing foreign banks and hedge funds to invest in its capital markets.
The 1997 Asian financial crisis was caused by south-east Asian economies allowing foreign speculative capital into their tightly controlled financial markets. Forbes magazine has summed up the dangers posed by this process:
“Once a market deregulates, there’ll be lots of speculative investments that go after higher interest rates. But as a result, with excessive amounts of foreign money stacking up, along with hot sectors and hot money, the economy ends up screeching to a sudden halt.
Thailand, Malaysia, Indonesia, the Philippines and other South-east Asian countries …. sought soaring stock markets, higher property prices and increased consumer lending, [just as China currently does-LT] they forfeited control over their financial systems.
Whenever the free-market gets mixed up in a closed controlled financial system, then something will go wrong.”
Economists Fengjuan Xiao and Donald Kimball in examining China’s capital controls have concluded that there are many dangers to opening it’s economy to international financial markets:
“As it now stands, there is considerable risk that the outcome of quickly liberalizing capital account transactions will be costly for China. As demonstrated during the Asian financial crisis, there is no stronger, quicker, or more unforgiving punisher of poor financial practices than the power of free capital markets.”
Despite these warnings from history the phase 1 trade deal mandates China to granting banking licences to the “too big to fail” banks of Wall Street. The same banks that created the 2008 financial crisis. Since 2008 they have engaged in a massive crime wave fleecing American consumers and small-medium businesses helping to create the greatest increase in wealth inequality in over a century.
To add insult to injury, the trade deal allows American owned credit rating agencies to operate in China. These are the same credit rating agencies (Standard and Poor’s, Fitch Group and Moody’s) which gave triple A ratings to sub-prime mortgages that triggered the global financial crisis of 2008. Incredibly, China is now giving them the power to rate Chinese bonds sold to domestic investors and international investors.
The phase 1 trade deal also allows American banks to provide securities investment, fund custody services and to serve as underwriters for all types of non-financial debt instruments. You can imagine the hedge funds and “too big to fail” banks of Wall Street drooling at the prospect of the massive fees they can extract from investors in China.
The phase 1 trade deal also allows American payment processes such as MasterCard and Visa to operate in China. No doubt they see China as a lucrative market in which they can extract large amounts in fees from heavily-indebted consumers.
The phase 1 trade deal gets even worse when it comes to allowing American capital to conduct its parasitical activity within other key areas of the Chinese economy.
China will now allow American financial services providers to acquire non-performing loans directly from Chinese banks. Shareestates a New York investment firm notes the lucrative opportunities of this particular financial market, particularity in real estate where China has seen a massive boom with the growth of its ‘ghost cities‘:
“Non-Performing real estate loans are a huge opportunity for investors who are serious about turning a discounted asset into a positive ROI [return on investment] and potentially a passive income that will keep your returns flowing in for years to come.
In 2019 China’s banks had non-performing loans worth over $317 billion which is the highest since 2003. This comes at a time when Chinese authorities have been encouraging domestic banks to sharply increase the number of loans to small and medium businesses to help combat the slowdown in economic growth.
According to Price Waterhouse Cooper this poses systemic risks to China’s economy:
“Yet the real level of bad debt in China might be much higher than the official figures, according to some international rating agencies. NPL rates may have already been as high as 15%-21% for the financial system. If that was true, it would mean that if all these were written off, it would wipe out Chinese banks’ capital base.”
China’s government has overseen a massive credit binge over the last 10 years which has seen the country’s total debt rise from 164% of GDP in 2008 to over 300% of GDP (over $40 trillion) accounting for over 15% of overall global debt. Offering non-performing loans to rapacious American banks is unlikely to help the country deal with its gigantic debt hangover.
The phase 1 trade deal also directs China to remove the legal barriers to American owned insurance companies supplying services to China’s 19.1 trillion yuan insurance sector. In 2019 Chinese insurers premium income rose 15.9% from 2018 to 1.6 trillion yuan.
To cap it all off, the phase 1 trade deal also allows American owned companies to participate in China’s derivatives markets that encompasses speculation in price movements for stock indexes, energy, foodstuffs, precious metals and bonds.
Needless to say, the sum total of all these concessions in the financial services sector amounts to a major retreat by the Beijing government. Now it will give American capital a considerable influence over vitally important sectors of its economy. By allowing foreign capital into its financial markets it remains to be seen whether China will suffer the same fate as the economies of south-east Asia during the 1997 financial crisis that swept the region.
Why has the CCP government made so many concessions to the American empire?
The number one priority of the Beijing government is to maintain economic growth at all costs to avoid the type of mass protests currently afflicting Hong Kong. President Xi and the oligarchs whom he represents have not forgotten the Tiananmen Square uprising of 1989. Social stability must be maintained at all costs.
They are acutely aware that the economic revolution, that has swept the country along since the 1980s, has created an enormous urban population. As long as the desire of the urban population for rising living standards can be met then the CCP government can sleep peacefully at night.
The phase 1 trade deal can be seen as a desperate attempt to help stave off a recession. American tariffs have undoubtedly hurt China’s exporters and the limited partial relief on tariffs must have been accepted by Beijing as better than nothing at all.
It could be argued that China is playing for time while its major economic projects such as the Made In China 2025 initiative and One Belt and Road endeavour come to fruition. If allowed to develop unimpeded they will enable China to achieve its objective of becoming a high-tech manufacturing hub.
The phase 1 deal has helped postpone American demands that China abandon its state capitalist model that has played such a major role in the country’s emergence as an economic powerhouse. American capital would love to see China privatize its strategic state developed industries as happened in Russia during the wild west days of the Yeltsin regime.
The China Worker publication makes the perceptive comment that Xi’s regime felt squeezed by a number of intersecting forces that exerted an:
“…enormous pressure to sign the deal and stave off further tariff increases, given a banking sector crisis which is beginning to flash red warning lights, an accelerating slump in investment and consumption, and fear of significant social unrest. The regime fears the effects on mass consciousness if it is seen as weak or as having capitulated to US pressure, especially as this comes after a number of serious political setbacks – not least the mass rejection of the Chinese regime in Hong Kong and Taiwan.”
Prospects for the next period
Many financial pundits argue that China’s strategy in the trade war is to wait and see if the U.S. presidential election in November produces an incumbent who is less hostile to its interests.
This would be a huge mistake as recent votes in Congress reveal how the political establishment (both Democrat and Republican) share the same world view when it comes to China. Congress keeps voting unanimously for anti-China measures such as the Hong Kong Human Rights Act.
Regardless of who wins the presidential reality show in November China cannot expect any change in the hostile stance of the American empire.
China’s relations with America over the next period will be shaped above all else by developments in the global economy.
The weak economic growth experienced by the world economy since the 2008 economic depression has been fuelled by a gigantic increase in debt the likes of which have not been seen before in human history. According to the Institute of International Finance global debt grew to “mind-boggling” levels from $173 trillion in 2008 to $253 trillion by 2019. Global debt to GDP hit an all time high of over 322% in 2019. Global debt it set to continue growing rapidly in 2020 largely driven by China and the United States.
Yet this has not been matched by a corresponding growth of the real economy in goods and services.
Central banks across the globe, including China’s, have taken a series of crisis measures in a desperate attempt to stave off the next economic depression. These measures range from the 67 interest rate cuts carried out by 46 central banks to the huge stimulus measures i.e. money printing on a scale that was last seen during the depths of the 2008-9 financial crisis. The U.S. Federal Reserve, the ECB and the People’s Bank of China have all been forced to print digital cash in huge quantities – yet it’s not working.
Numerous metrics indicate that there is a ‘synchronized global economic slowdown’ due to the limits to debt-fuelled growth. The Institute of International Finance estimates that, “Over 60% of the world’s countries expected to see below-potential growth in 2020,…” Global manufacturing activity is hovering barely above the recession at 50.1. The Baltic Dry Index (which monitors bulk commodities shipping) is a closely watched indicator of future trading activity has fallen 50% during 2019. Meanwhile, the DHL Global Trade Barometer indicates that a global economy in serious trouble. According to the Brookings Institute:
“The indexes for China and the U.S., the two main drivers of global growth, are below 50 and have been falling. The indexes for other major advanced economies have also declined, reflecting the broad-based nature of the slowdown in trade as well as GDP growth. The low and declining index for Germany, the main driver of growth in Europe, points to an economy that is flirting with recession, as it has experienced virtually zero growth in recent quarters.”
The dizzying new heights reached by financial markets, particularly in the U.S., are reminiscent of the roaring twenties boom that ended in the disastrous Wall Street Crash of October 1929.
The economic upswing since 2009 is very long in the tooth. If the global economy recedes into recession during 2020-2021 then China will be placed in a very difficult position as markets for its export industries start to dry up.
The uprisings currently taking place across the globe before a recession may well spread to mainland China once an economic downturn starts and living standards start to fall and people feel the pain.
In such a situation the Beijing government will have very limited room for making any further trade concessions to its American enemy. Yet the American empire will be even more hostile in such an economic environment. It will use its vast military machine and the its control of trade, through the U.S. dollar, as cudgels to try and pressure China into making more fundamental concessions.
The Chinese nation will face a choice: draw upon its rich heritage of revolutionary anti-imperialist action to resist the U.S. empire or capitulate to its enemy.
Long term, the current strategy pursued by Beijing of peaceful coexistence with U.S. imperialism will not work. History is full of examples where declining empires fight to maintain their hegemony.
China did not concede to anything since this phase one deal is preliminary. This is only a truce while China moves itself into a stronger position before the US markets implode. Being an election year it was Trump that needed a deal to sure up his mid-west base, who have been devastated by the ongoing trade war.
Thats a fair statement too. Facts are China protect themselves and by that has free markets in most of the world, but we are not allowed to go into the Chinese market.
Thats the extra by Trump. EU does same thing but in an more calm way. We just simply tax incomming things, so their prices are fair trade.
We also try reduce the third class garbage, they are able to sell us, because they cheat and even are bad copist with no control.
As an example I bought a small tent and thought I saved 15 dollars, but it was of lower quality. So I diodnt get that forst class product I had saved for. Its not as waterproof as primosed and sewings are of the cheep kind.
USA both need reforms and as we acces to the Chinesmarket – Or we close down our from them as mch as it goes.
If muslims find pigs in thier yards, they can sel it to the chinese for gold.
need access to chinese markets? are you simple? i think you find we already have access, look at the made in part of anything you buy
tariffs imposed on chinese goods by the EU lowers the quality so that china can sell goods competitively
Its about ownership. They can own here. We cant own there. Thats too often, where the profit is.
As descriebed above, we can go into the Chinese markets doing a lot of things better then them, as well as we have a lot of products they today import.
The Chines state deny us that.
China protects its interests in its own way, One Belt Road is needed for global peace. USA hegemony has proven to be abused for decades
believe it or not, China is the best friend USA has right now. China can afford to lose 350m people in a hot war. USA cannot
I cant relate the belt roads to any kind of peace. Its much more like taking Siberia as well as down to china as colonies killing a lot of locals too. Only Alaska was too far away.
I also see its USSR as Well as the Mao China which systematicly has blocked for the many needed railways and roads on land but it now is possible, because China now are much more productive, has need og minerals from Russia as anybody else has and because of devellopment in tecknology to do the needed job.
Hard to believe China is a friend of USA. They are denpended. China is rising from the communist dirt of the worst kind. USA is kind of dont grow much and need a lot of internal/and external) change.
This is not about looding or winning any war. Your 350 million is a far out estimate making no sense at all. If things gets complely mad, there hardly will be 350 mio. left in China.
And who else throw nukes? Teheran in their own airport or what:)
USA didnt choose that hegonomy. You forget that. They tryed everything to be involved in WW1 as well as in WW2.
The UK and the French Empire collapsed. Japan and Germany were big enemies, whci should be defeated.
Most parts of China was a colony of Japan if mainly USA but also UK was not there.
Here You also forget that most parts of the world before that was colonies. You might name today as Neocolonialisme, but has to campare with before and why UN was made.
I see that as a great improvements
I also allow me to compare “Western Economiwes” with what was before and that was done by Marhall planes with big, big investments. Stalin said no. Today I also compare and see China as well affiliated.
I know how chinese are insi´de themselves and even opposition such as Falun Gong. Whatever they are, they always are very Nationalistic of the worst kind.
The best friends of USA are EU and Nato and probatly Japan, South Korea and Australia.
In the other hand we or not as much friends as, as we used to be.
So I do support the belt and see it as a plus for us in Europe by the sea as well.
Fx https://www.europeanchamber.com.cn/en/business-directory/10262/Maersk_China_Shipping_Company_Limited_Shanghai_Branch
World bank agreed decades ago not to give loans to countries for fossil fuel power stations. Direct UN policy has kept majority of these countries in the dark
I think the intensions was good but also a kind of unrealistic. It was a kind of desperate panic move.
But I will defend it too. We have Norstream 2 almost in our garden. We also has EU plans for reducing the CO2 transmisson to the air.
Building fx Norstream too motivates many to use that a lot as well as delaying needed changes even they are better and cheeper in the palette for needed changes.
We actually had that dispute in Cop 12 in Copenhagen, where China actually would stop building out coal powerplant IF they were allowed to keep their old based on coal and no cleaning.
Many would not accept the chinese way of expansion. By that there was no agreement about it and China today makes more powerplants by coal even they every day feel and see the results by smog eating lungs as well as everything has to be acid protected.
I thinkYou should understand the market for new and old Powerplants. Some under devellpoped and develloped states dont build them. They buy them from world market producers, so when there is no loans, the big producers are the ones wasting money UNLESS they build cleaner ones for electricity and heat.
So yes it delays and even stop devellopments, but the price by airpollution is highly ignored insisting on loans for production whichnetto as results makes be minusse.
I have followed many socalled big powerplant projekts. Low educated countries hardly having an infrastructure cant handle big systems, because of the rest – fx spreading the electricity and paying for it. They also cant handle the needed extra production of industrial goods, services or anything else. By investing in big dirty powerplants, they cant effort schools, medical care and Hospitals – Which rich countries are majority financer of since fx from when UN was made.
Thats forgotten. Look at several of the dams making electricity. Aswan is still ineffective because they dont do enough fertilizer to improve the soild of the Nile. Loak at the delta. No material is added and it does like Venice.
Upper Volta dam is same thing or even worst. It was build about 50years ago toook 1000s of hektar of more or less agrable land, but none culd use the electricity. They ahd no traditions for it. They had no lines for it. NOTHING. Now they partly do use the elextric power and probatly only has a small minus every year.
So my own conclusion is, tha people in low populated areas need systems, they can handle. Here fx Solar electricity and windturbines are perfect. Those dont need big loans for big investment those states and the big companies think they need.
Furthermore those systems can be added after need and a little by a little. So I do prefare such relative small facilities are given as gifts or loans from NGO companies. and nothing else.
I am not for anybody has to be helped having electricity. Thats impossible westerns has to speed up to make even more pollution by that, for that what happens with those loans. Only the big companies are the winners.
So I would give to the ones, which actually has plans for the future and are able in changing their way of living. We have seen somany results fx giving water. They are happy but if things sudenly has to need even som little paint not to rusty, they do not a thing about it. So why give them???? If its their culture to be defatistic like that let them make a lot of children, let them make those children die by bad water og let them have no water for their fields.
Expaecting loans to the non productive cultures and relgions makes less and less sense. It could make sense if they were our private zoo and we took care oof everything. I think we have given the m freedom to chose not being colonies any more even we do have some neocolonialisme there.
They are free. Isnt it respect for that leaving them alone.
And I have exact them same attirude for ME and for that matter Afghanistan. If needed a fence around them. They cant bother us. We cant bother them. We only spend money at the fence it and paint it now and then.
I am almost pensioner now. When I was a child we were learned in school, that we should help the poor ones in thje world and soon they would hve good lives having no problems and in those matters being like us according to fx Human Rights.
I hardly has seen much of that. Its more like filling a lot in pockets with big holes in the bottom. A lot is gone for nothing and extra reproduction. A lot is eaten by big big companies including some in my own country as well.
By that its stop in my mind unless its smaller investments people can handle.
It might be different from that, but I have seen UN pay a lot for the Palestine Refugees since about 1949. All kinds of jobs are made but the materials are transformed into warfare against Israel. We ven gave them very good fisherboats. Those right away was used for smugling.
So why should I pay for that forever just because I produce and by that has made a big GDP. I dont see that. I was not even born, when Israel became a state. So here I am more and more “I dont care”. Its not my fault Palestinian parents let their children climb in Israelien fences being killed. I dont see myself solving the whole world.
And if everything is my fault as western, why dont dont we retreat and pay no more incl. – of course – warfare. We have no friends there. They are inly friends ehen we send the money and weapons and are not raised for any stabile solution.
In Idlib: Kill them all. Kurds: Kill them all. Jews are zinist and run the world by Soros and Rotchild: Kill the all.
Should I support any of that. Last year the unproductive part of the unproductive muslims cost us more then 3 BILLION dollars. 3 BILLIONS.
In Iraq asked for our danish help to the Bagdad Goverment was named as we were Nato being there. We were pussies too and weak because send help to own own crews there because rhose almost got hit by ballistic missiles. Last yar we gace Bagdads 50 million dollars. I wonder why.
Does it really matter who kills who there a long as they do??
And If we are repsonsible for most muslims in the world are muslims, we shoudl retreat, so we could send them home in their own kind of happiness and understanding.
Its very much about change, will for change and being able to even by allowed to try any change.
I can see we can help, but we certainly dont have to. We systematic invest in making a good life and dont steal from people. We invest in school, education, skills, hard work and are paid by hours and by qulifikations.
As long as I see none of that change and restriction even by Goverments, I will not feel obligated to give a single Kroner of MY MONEY.
carbon dioxide is a by product of co2 not a cause. look at the big yellow thing in the sky during daylight hrs to understand what causes the earth to warm up.
and carbon dioxide is the stuff you expel when you talk and plants eat, it isnt a poison. the green growth over the globe is currently exploding
refusal to allow underdeveloped countries to have loans so they can make power is financial pressure, USA is ISIS btw
climate change is a massive hoax by banks who have vested interests in ‘green energy’ that want to destroy the competition
china is putting up power stations every two weeks, china and underdeveloped countries are respobnsible for 90% of the world pollution in 5 yrs time if you went carbon neutral, china would have added 45 yrs worth of you current output wind turbines kill birds, kills bats, and dont work if there is no breeze. they produce intermittent electricity
nuclear power has the least dangerous impact, but the people who are attacking fossil fuels today attacked nuclear power in the 70’s and 80’s
you are an idiot you are an idiot
TOO MUCH CO2 is poison. Its like every other production of almost everything else a question of TOO MUCH.
We make acid and do it with sulphur as well and rapidly change the balance. We do exact the same by burning forrrests.
Thats done by taking up bound oil, gas,coal and also wood as well as the need grow because the world population grow and many countries make higher and higher living standard. …………………………………..
I dont deny realistic loans. I have written so many of them are no good and wh and made lines in writing for who benefits for them. Thats not the populations at all. Its not the Goverment, beacuse they cannot handle building up the infrastructure.
We see the resaults very well: We giving the loans has to pay them too by gifts, because those countries cannot, because they for several reasons are not and the poor countries ca<nt use them and we make minus. The only ones with benefits are the Powererplant maklers.
Loans and not used powerplants are bad omen for children ond no idiotic far out from me. We have seen those wasted products for years and also making fxc steel and cement. The results are no jobs as well. Locals cant handle big scale things. Therefore the investers by loans try to make it work by sending qulified help.
That is not enough. So those companies has to be added we also build infrastructture for distribution. And who does that.
Trains too. Who build new rail line. Chines do it very well by chinise leadership and chinese workers making hardly any jobs even for that part. Next those railroads actually are made for export of minerals and food. The locals only get a líttle extra transportation.
Thats why I write, that I prefare smaller investments people can handle and windpower as well as solarelectricity are very good new options, because they easy can be added, when the need is there. Of course its only possible where there are enogh wind and sun.
So I do prefare very small powerplants, which might already be there.
I agree in better control. Thats what I write. Banks and others should not be giving bad investments and should be denied or delayed in that. But banks only iare a part of it. The ususal old critisisme is a no go. Thats only the finace part. The rst seemes to be dark to You.
And again: I write for help to more clean production and more sober and balanced to need production. That makes me to no idiot but the opposite.
You also are totally incorrect about China and other underdevelloped countries makes 90% of the pollusion. We outsource a lot of the dirty and high energy fx to China because the wages are low, so You have to subtract those very big productions from the highly industrialed countries.
And that not only by the chimneays there but also plundering forrest and after that making plantations. Its not only in the tropical zones and poor countries but all over, where it is no stopped.
I am not against nuclear power, but its big scale and by that as written above, where its made, where people can handle it. So those many places can replace old fossil ones. But my demand is they make them safe and store the leftover themselves the next 10.000 years.
I certainly would prefare all nukes in the world could be recycled into usefull electricity and warming for the winter.
Denmark by we have wind 200 days a year and safety matters made the windturbione revoltuion for the whole world, but we also know that and solar electricity ells cant cover great parts.
Telling too much CO2 dont eat calcium as many Island in the pacifics as well as fish cant live in in too much CO2 water makes no sense as well as the basic plants cant grow or overstrangulate by plankton, which rotten and take all oxygen makes no sense.
Some mad scientists mighty have given You only the first parts of the books and knowledge about it.
climate change is a hoax.
well obviously, if you drink 4 litres of water in a 30 minute period or something you are dead too. but co2 is not causing global warming. and you support ISIS so fuck off
“Facts are China protect themselves and by that has free markets in most of the world, but we are not allowed to go into the Chinese market.”
Just what are you going to sell them? They make everything you do only cheaper …. and it’s not like if there is a market for something European in China they don’t buy it.
I used to buy Bordeaux wine futures up until 2009 …. it was gamble but a great way to get excellent wine for a bargain price …. around 2009 the Chinese discovered French wine in a big way and basically bought the entire crop driving up the futures prices to above retail level.
Altendorf, the German woodworking machine manufacturer, produces machines in China that are better than anything else made in Europe at half the price. Do you propose the Chinese buy German made machines at twice the price when Europeans are buying Chinese made saws that are of the same quality for half the price?
Look at the trade deal the USA made with China …. they strong armed the Chinese into buying US commodities instead of on the free market by putting tariffs on Chinese goods denying Chinese products access to the US market …. this from the supposed bastion of “free enterprise”.
It’s time people learned the difference between “free enterprise” where the playing field is level between competitors and “capitalism” where capital is used as a weapon to prevent free enterprise in favour of those with deep pockets.
Its about ownership. Ownership is profit. Here the Chinese state takes all almost all profit. Here – outside – having the chinese as owners – its allowed for them to take profit as we do.
We openeded up forthat ourselves to gain the Chinese industrialisation. Thats very good. I am happy about it for greater and greater parts of the Chinese population.
But now its very visible, that the protection is compleyly unfair and make us tax them here in stead. That is double and ineffective work.
And we can sell a lot to them in high quality products as well as food. They dont do everything and they also dont do everything well. Danes are experts in both things and can learn the chinese a lot not only in quality but also in getting more production to lowered prices.
There are many examples from the dansih high tech sector, which we today sell to the whole world because they are the best or semilar to fair price.
You certainly put China too much up to the sky. I fo agree China since Chairman Mao has done a miracle, but they are not experts in a lot of sectors. But thay can just buy or let them be produced, which in prrofit then should go both ways.
I agree in the outsourcing. Thats how it is. You produce whats needed shatever itts first class or crap to a price, which You comptete with. Thats fine, but not the it.
And I do agree about monoplolisme fx for wine. China dies it Yourself. Fx they bought in for 5 yaears of fur and then the price of fur fell after that all over the world.
That kind of monoplicy and protection has existed all over the world and we all has to fight against it and keep it down as well as it goes. Danish Companies sometimes try to do that in big scale too and are punished hard by Our Goverment as well as the EU commisioner for it (Vestager which by the way is Danish).
I do Agree about the USA commodities, but I remind You thats not abnormal for the world. Makron in France has been elected to change ancient french state protected ancient productions and a lot of too old things systems such as early pension, where people even being healty and should not live unprodutive paid by others to they are 90. Other reforms are needed there. The ancient French system dont create jobs and in that are all the yellow wests prefaring free wellfare in stead of jobs. Well many of them also should go hometo their own countries – Here reforms for EU is needed.
Many many of the incommings should not be like louse, moskitos and flees on us productive ones. Go home and change Your old systems.
So I allow me to say trade war as well as other wars seemes to be normal, but if there are things to change to the better, we can and shall do it.
USA itself use a lot of internal reforms. I have tryed to study them as well as it goes. Too much is not as updated as it should be anymore. Its too easy for USA mainly to blame others.
I do see some try fx Sanders and Warren, I also see many states inside them do see energy can be produced cleaner and cheeper as well as too much is almost out here and there, because of using it for wrong things and too much evaporation. Climate change hits the big old farmland in USA but very visible it also hit the other big food påroducing belts atound the world.
I can only say free enterprice with no limits should be reduced. We partly has great succes with that by income tax and a try for better oursourcing.
As a contrast to the american private entreprice in hospitals and medical care, we get the same products or better to less then half of the price. Its very simple. The state or the local parlaments are in the top for control – and then we outsource a lot.
The the privates has to compete for doing the different jobs inside them as well as selling medicine.
Even so we are not perfect and things gets out of control and hands now and then. But we do fight. Everybody has to have best structures and be aware
Not only do I believe in free enterprise but I live it. I’ve been in business for 35 years. That being said I live a modest life and I believe greed is immoral.
I’m not a communist but I believe Marx was correct in his assessment of capitalism ….. it eventually leads to war over markets and resources. I see Marx as an economist not an ideologue.
The way I see it, it was capitalist greed that caused the rise of China and the decline of US manufacturing. It was the capitalists themselves who didn’t want to pay high wages and follow environmental regulations and moved their manufacturing to China. They condemned their own countrymen to lives of poverty and drug abuse just to maximize shareholder profits for the obscenely rich …. it’s not like it’s money they’ll ever be able to spend …. they just hoard it.
I was around in the 1980’s and 90’s and I remember it well. I remember being told Asians were clever but they couldn’t innovate. I remember being told that we were going to keep the design and management jobs and Asians were happy to do the dirty work. I also remember reading that we were training lawyers and MBa’s while Asians were training engineers and thinking “they’re going to kick our asses”.
Well those engineers trained in the 1990’s are hitting their prime now and China is set to take off and there is fuck all any of us can do about it. It’s also a myth that planned economies are doomed to failure and that communists can’t do well in business ….. the only difference between a communist business and a capitalist business is who the shareholders are.
Some time read the history of corporations …. they were originally charters to do work that benefitted the state ….not the individual. They’ve been perverted over the years.
Its seeme sI must be a bad writer or You are a bad reader.
I has written that in China almost all property and production is owned by the srare and therefore the state also takes the profit.
In the western system China can buy itself in and also take profit but Westerns and other inverstors cannot do that in China.
I say thats not fair. China also can buy any land they want as well as start almoat any production they want. The opposit is noy possible. Thats bad competition.
I see no decline of of USA as such. I do see China grow and make the cake bigger and better.
Your version for production in China with outsourcing is fine. It could be anywhere in the world being ebst to the price.
Its about the other part of it named as creating new productions competing at the Chinese market having equal rights (and duties) for it. It also is to make new innovative productions as well as develloping there.
Thats forbidden. That the 2 important sectors.
As written above in my too long text Danish Companies would be perfect invetors and innovators in China giving both them and us taised lidibg standard as well as money in the top.
BUT WE ARE FORBIDDEN. FORBIDDEN. GOT IT.
We have a lot of products they need very much and import. We also could produce them better for them in China as well as we do a lot of innovation, where they today try to steal it from us. We dont need that. And why steal, if You with no probæpems can get the homemarket and even export from China covered sharing the profit.
Danes sell for 7,3 Bio dollars and buys for 10 billion dollars and that gap is made by the Chines Goverment restrictions.
We are not “American Soybeens” but first class in many sectors, because we know better then the Chinese.
Denmark Exports to China
Machinery, nuclear reactors, boilers
$626.93M
2018
Electrical, electronic equipment
$367.31M
2018
Meat and edible meat offal
$346.41M
2018
Fish, crustaceans, molluscs, aquatics invertebrates
$289.35M
2018
Optical, photo, technical, medical apparatus
$287.28M
2018
Cereal, flour, starch, milk preparations and products
$209.99M
2018
Furskins and artificial fur, manufactures
$206.61M
2018
Pharmaceutical products
$100.78M
2018
Dairy products, eggs, honey, edible products
$74.79M
2018
Miscellaneous chemical products
$72.02M
201
“Its seeme I must be a bad writer or You are a bad reader.”
I commend you for you ability to write in English however I do have trouble interpreting what you write but I’m trying my best.
“I has written that in China almost all property and productions are owned by the srare and therefore the state also takes the profit.”
Whether it be a state owned corporation, a private company or a publicly traded company someone gets to take home the profits. No one gives it away for free. Private shareholders are just as greedy as the Chinese state if not more so. I’ve contracted with governments, public institutions and corporations. The most untrustworthy and deceitful by far are the corporations. You always have to fight for your money with those bastards …. I could write a book on the scams and ripoffs I’ve encounters.
“I say thats not fair. China also can buy any land they want as well as start almoat any production they want. The opposit is noy possible. Thats bad competition.”
How is it not fair? Why does it matter how a company is capitalized? State ownership is only an issue in capitalist countries where the government is mandated to protect private capital …. China isn’t a capitalist country, they don’t live by your rules. Where does it say that the only type of economy allowed on planet Earth is a capitalist one? In my experience it’s the for profit corporations that are the most likely to be unfair in competition …. in fact it’s rare to find a corporation that has fair bidding practices … they all tip the playing field in their favour and it’s the private corporations that are now complaining that Chinese state owned corporations are unfair to them. I’ve never experienced this with government work or institutions …. everything from the bidding process to billing is clear and above board.
You live in a free market society. If you don’t want to support the Chinese economy because you believe they are unfair don’t buy Chinese goods. If you find the only products that are available are made in China ask yourself who imported them and why they import Chinese goods instead of selling you Danish goods. I boycott lots of foreign good if there is a Canadian made alternative even if it costs me money but I also buy lots because they are good value and they get me a better return on my hard earned money..
Its very easy. You support one sided Chinese protectionisme, that not free market all.
We see the results today and in the duture with all kinds of tax, giving tax back, different kinds of rules for vet bad or very good reasons.
I can show You a random example from EU. EU is not as bad. But here is one.
Eu tax alectricity production hard to reduce the use of coal or reduce it according big planes.
But more then 50% and sometimes 100% of the Danish electricity production is based on windpower making no pollution apart from, they are expensive to produce.
In the other hand we have Poland only having electricity by very dirty coal, which block for any changes and not even try to save energy even being very big wasters for electricity and heating all over.
My english is different from Yours because its normal modern partly spoken english using all parts of the grammer well as well as being a no waster of filling in to many unnneded letters and words.
So I am very close to the spoken english and often dont care for spelling.
We do have several kinds of English here. I could be less nice using the American way 4 U. But I dont.
I also could use the very short almost coded SMS-MMS version, which I dont here.
If You are from very limited languages such as Arabic, Turkish and Farsi I dont blame You for that.
But those languages as well as several others dont have advanced grammers as well as a lot of words as well a they can mean a lot of different things being used and tyaken form the German language group and develloped.
English has it succes because it can describe a lot more and much better then other languages. At least its one of the good reasons.
A very good example from last week was my use of sober. Some english expert tryed to correct me it was meant as drunk or intoxicated.
Its not. Sober here is used as CLEAN, NO LYING, HONEST
So we only use sober according alcohol when we are as polite as it goes according people, which is drunk to avoid confrontation. The police do it being polite, and if people are drink and they take it in, they say: You will be relased tomorroe morning when You are sober again. You have to oay for visiting Our Hotel:)
We also have a very different culture compared to muslims. We never divide our house and anywhere else according Islam in at least a women and a Mans room and never use the term “mixted room”.
The only place we are not mixted are on toilet facilities and when we change clothe.
Women has rights to go anywhere alone, work with men in the same companies as well as they are Leaders above many men. For the moment 6 of 12 policedistricts has vomen as leaders, because they have been compared with a lot of men and women and are the best.
Finally its my habit to explain things until people understand what I write. It makes no sense to write things people dont understand. In the pther hand I can and will never go back to the Lawyers and Doctors very limited languge I once upon a time many years ago learned in Highschool meant for Science.
This site certainly is not science. If You dont understand my oppinions, You understand the western world in the same bad way. I am sure thats a part of the conflicts in the world.
But I will not go back to Your kind of English putting in a kaffir, haram and Allah Akbar here and there. I also allow me very often to use names for places and things in Your country as I have learned them.
14 says ago was a good example. Danes are called in by the Bagdad Goverment and last Year we paid 50 million doller to that.
Even so we for so many were USA and Nato attacking Iran. We also should be brave and not pussies and stay, where even more ballistic missiles might fell.
Her it was not mentioned it was dansish journalists, which gave the first sober pictures and we even was laughed at, when we right away send help ro our teachers and experts there.
Even small in warfare – only 40 dead in Afghanistan and some here and there – We do have homecomming soldiers not able to live with their familes being afraid, when we clapping in our hand. We also have several living alone in the forrests beacuse they cant be with anyoe else. That seemes abnormal on the site here.
When we evacuated those ones to Kuwait it was descriebed they ran away and was afraid.
So much about different context. So I will continue to write as I do. I do try to improve my spelling here and there but the importance are the messages and whats facts and not and oppinions about it.
The only thing China needs from the US is time, any agreement with Americans is not worth the paper it’s written on anyway but every day the Yanks waffle about how great they are the Chinese build their defensive capability. Everyone knows this will end with violence whatever is negotiated so the longer before the Yanks initiate that violence the better China will be able to respond.
No facts checking from You at all. NONE.
https://www.chinabusinessreview.com/what-america-exports-to-china/
China has lack ofalmost any kind of food and even buy land in Africa and South America for it.
So China isn’t dependent on the US for its food imports… Thanks for taking the time to confirm my facts Jens.
Thats a relative. They have to pay more for vegetable protein as well as their needs rapidly grow.
Defence capability certainly is food and not only those beans.
you are an idiot
lol …….. he is but, he is our idiot. :P
:P
People are no idiots just because they tell, that China cant do as they please – if they do please.
Thats dreams for idiots.
China need a lot of prodücts as well as open trade for its progress. We and USA has given them free trade. If Cina dont open up like we have for them, we will reduce the trade to them or tax them harder and harder.
So it makes no sense USA just can be boycuttet.
China follow laws. As do companies who work within China, every country should be able to have its own laws putting its own population first. Do not blame China because you have bad leaders. elect better ones.
Trump is a good start it seems, but the USA Military Industrial Complex still runs your foreign policy.
USA are shipping ISIS into africa, isis into ME for regime change etc
China invests, as does Russia, USA attack smaller countries with sanctions or threat of sanctions. USA don’t play fair at all, China just got better dealmakers
Of course I blame China. They were goven extra help because it was very underdevelloped and needed.They has no need for that extra protection now.
Its the same for fx India. They were helped a lot because many 1000 died by starvation every year. They dont do now, so India has accepted we help less apart from smaller investment and make oursourcing jobs.
Trump is the worst President for USA as well as the rest of the world since Nixon and Vietnam. Less an d less rely in USA at all and not even in USA. And her from Fairbanks before him too.
If You want america strong in stability and succes, You should find some kind of McCain being only 50.
Democrats are same thing. Museuums are the winners by Sanders and Biden. And now they can add Blooberg as some kind of Old Noah.
BRICS countries set up NDB a few yrs ago to provide liquidity to smaller nations accepting investment projects
the NDB was initially started with 50b worth of USD in liquidity
China is facilitating infrastructure building projects across the globe along the one belt road route. That route is also seeing USA attack it militarily through your ISIS proxies in the ME, as well as financially with sanctions to smalelr countries and neighbouring war zones that the USA created
further down the line over water China is building a navy to match the USA to protect trade routes flowing in and out of china right through to eastern europe
so you have the american navy patrolling south china seas, china building along coastline, philipines choosing to allow china access and ‘lad right’ rather than USA building a base there
China’s navy will match the USA at around 2028
USD is hovering around 48-53 % global reserve currency, yuan is catching up strong,
further down the line, way down the list is what you mention, domestic protectionism and self sufficiency laws. Trump is doing a good job on that but still China are way ahead and proving to be a reliable source of manufactured goods
China is not self sufficient on energy, but thats where Russia and Iran come in
if you dont buy chinese goods, american companies will still buy chinese goods and just sell them abroad. sell em cheaper for more profit because of tariffs, however tariffs also allow foreign companies to set up shop and provide employment to USA citizens because building in america avoids tariffs also
if tariffs are set to high, gl with exporting to China, which is probably one of the biggest importers of USA goods you got. (just off the top of my head)
Americans should go home and fertilize their own garden.
So much is more and more outdated. A lot of things should be changed.
Last week Trump again promoted unwanted children is a good thing. Contraseption is denyed and delayed and therefor You have a lot of women not working as well as men not being able to pay childsupport, because even schools and education is too bad and too expensive.
I could make a long list of total stupidities. Why should any registrate as voters. All are if they are 18 pr definition here. Even the criminals are here apart from debiles and barking mad ones.
We get a letter telling which kind of election it is, where to vote and when. If the county has extra transportation to the ones, which cant come by themselves, its written. Its also written how You can vote by letter og internet.
You go there. You tell Your social security number and has fx drivers license with passport on.
And nest You get the list and makes Your cross behind curtains. And in USA its even possible You can be President having less votes then number 2.
And again: Education is no private investment at all. Most come throug education and becomes much better taxpayers for years.
The same goes for criminals. You help all before they might besome criminels. Thats expensive, but criminals cost much more then even poor taxpayers.
Your private defeding against the state is a bealdered joke in itself. 2/3 of all crime incl. guns are among family and close related and not in the streets as robbers and rapers. Much like Youprefare to keep crime inside the families. Thats wrong.
I cant comment most of Yours well. Things are very complex. Listening to USA according Obama Care makes me sick. Things are not as the ones against say at all. More americans and especially politicians and experts of Your should not be allowed to open their mouths until they know, what they are taliking about.
So many things eminds me of old days, where some politicians said, that women in space would bleed to death.
Now the chinese dont like us again. We dont control free speech ha.ha. And not a word about Ukraine;(
https://www.youtube.com/watch?v=9h0HIm53Jus&feature=emb_title
Its a low tech attack by Trump. They sell genmodified Saybeans and the Chines will be genmpdified by that.
A dragon that blows steam not fire.
North Korea at least puts up a fight.
PRC can afford to lose 300 millions in population, the U.S. can’t.
this deal is a chimera—fake. Likely little will be purchased from the US. This deal merely permits China to continue their economic dominance over the US….while trump signed this “deal”, a low level functionary in china signed it
As written above again and again. It make sno sense China by old agrerements has been helped up and has free markets here – And we have no free markets in China.
China has denyed changes and the results are taxing their things as well as deniel of import and other more or less strange initiatives. That should be solved.
Its the whole world against China about that. EU tax more and more Chinese products. Its easy to understand. The Chinese Goverment take most benefits from the Chinese productions being 100% owners – But they are given the freedom to be owners for free here and do act here as equal producers.
We only deny them things like IT control and a few things more acoording our own safety.
The prospects? USA will lie, break any deal by claiming it was last administration, and look to attack maim and kill as many Chinese as they can.
like the USA always does. lies, cheats and steals
Unfortunatly USA has no patent in that.
one of the two countries is on the way down and out and the other has just started its ascent. the former will soon be back eating swede-soup and the latter, well, will reign the world for a considerable period and prosper without having to resort to threats, violence, sanctions, murder, lies and so on and in the process make short shrift with the illegal occupation of palestine and send the hymies into another diaspora.
Thats not correct. In the opposit to fx most of ME the Chinese Republik makes tha cake to share bigger. Fine with me. But here and there they are too greedy, whewre theyhave to learn by others to control themselves.
Looking at the GDP says USA still has the highest GDP ever. There are several worries, but Your descriptions is only based in Your hopes of fairy tales.
China mainly is going up. USA hardly is declining at all.