Sunday, March 11, 2018

Observing stressed Chinese Economy/Carlos Pueblo


Observing stressed Chinese Economy/Carlos Pueblo

It takes a while for me to understand the reason why a backward China can
create an economic phenomena in less than 40 years period and also takes
a while for me to see how China expert’s prediction of the fall of its economy
by observing stressed Chinese Economy. First of all, how the Chinese lure the
foreign capital; secondly, how do they invade and manipulate the pattern;
then, how the Communist regime abuse the custodian funds and create the
stressed situation; finally, how the United States respond to the crisis.

During the 80’s, China opened its border and provided some opportunity for
foreign investors to bring in capital to build factory to manufacture various
product to export to the other nations mainly the U.S. In the result, there has
been many traditional industry out of their business in the U.S. as well as in
Taiwan for instance. Many people are out of employment.

Through a complicate policy for the foreign investors, for example, 50% plus
Ownership for the native Chinese in order to get the favorite deal, in expensive
land deal, cheap labor, and relax tax deal and foreign exchange, etc. I have read
books and watched Youtube report to see the winners and losers i.e. that 50%
plus partner gets a help from the local authority to confiscate the property with
no reasons provided.

 The second complicate policy is the control of foreign exchange, the export
payment of foreign currency must be changed to Chinese currency under the
regime’s custodian until the necessary request from the owners. Beijing’s
regime think such funds are their wealth and spend freely, i.e. in the military
expenditure to show off their weaponry strength and threaten the peace of
neighbors. I can see the in balance of their governmental budget and witness
the Communist’s tactic to forfeit the private property by all means, i.e. tax
evasion, etc.

For decades, the U.S. business have lost their pattern and business by the
fake Chinese product due to the Chinese pirate edition of products. In the
result, there are large un-employment and the scale is as large as the metal
industry of textile industry. Recently, I watch the steel and aluminum tariff
posted by the Trump administration and suddenly realize  that the U.S. is
forcing China to come to the trade table to discuss issues of trade in balance
such as the pattern protection, etc.

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