China’s state media moves to reassure rattled investors after rout wiped US$574 billion off stock market https://t.co/mP5pN8k1BD
— South China Morning Post (@SCMPNews) July 27, 2021
Tuesday, July 27, 2021
China moves to reassure rattled investors after US$574 billion rout
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13 comments:
Buying opportunity? — unless you think that decoupling is underway, which is a signal get out of any company whose earnings are dependent on the Chinese market. The way things are going decoupling is looking increasingly likely. That doesn't bode well for some big US companies whose earnings are very influenced by China, either the Chinese market or supply chains affected by Chinese suppliers.
Yeah we have to get the whole supply chain converted back over to domestic and pronto..
And it’s just not China Tom it’s Japan and Taiwan and South Korea and Australia…
They are all big vaccine pussies or so USD zombie they won’t part with the lousy $20 bucks to Pfizer…
Either way you can’t do business with people like that… too unreliable…
But the bottom line here this is a victory for US soft power when you have all those commies fretting about their stock prices.. it’s working… but ofc still work in progress…
I’m watching these Japan Olympics and it looks like we were last summer…. Nobody there… They are a full year behind now… forget them…
But the bottom line here this is a victory for US soft power when you have all those commies fretting about their stock prices.. it’s working… but ofc still work in progress…
China is addressing the social effects of cowboy capitalism there, because it is a socialist country. You will hear a lot of politicians in the US, UK, and Europe talking about "doing something," but you will never see then doing anything substantial. Whatever is done is veneer that doesn't address the social issues.
China is facing the extreme inequality associated with capitalism in the West and unlike the West is putting a cap on the top by addressing economic rents and socialization of financial risk while also working to raise up the bottom.
China's "authoritarian" system is much more responsive than the Western "democratic" systems. For instance, Frank Li, a Chinese-American PdD in EE and successful entrepreneur, has written extensively about this and I have occasionally put up links here.
I am hardly against national self-sufficiency as a matter of national security. At the same time, international trade has been a key fundamental of progress and prosperity historically. This is a trade-off that needs to be handled carefully. Most analysts have forecast that the direction of increasing national self-sufficiency versus world trade will set global GDP back and create problems in most countries whose economies are strongly influenced by trade, including China and the US. China is in a better position because growth in investment and consumption is strong there, China being an emerging country. The US in contrast has peaked and is mostly service oriented and heavily dependent on financialization, both of which are relatively unproductive.
As Mike can tell you, investors need a lot of reassuring.
Perhaps China will supply them with fainting couches.
Netting around tall buildings can also help.
Interesting article at RT, in contrast to most of the stuff appearing in the West, especially the US, most of which is in terms of Western cultural framing and economic models based on "freedom" (read "neoliberalism")
China’s hammer blow to private education shows it will do whatever it takes to meet its goals by Tom Fowdy
The interesting thing is that the West assumes that the goal of the CPC is preservation of power but polling indicates that most Chinese people believe that the goal of the CCP is socialism, as stated, and they are quite satisfied with their government. Of course, in the West, this is rejected as biased.
Well step one is to get them to move away from being commies... so check that one off...
Tom: there may be real benefits to China's ability and willingness to use direct state intervention to support the economy, but that is no excuse for putting
China's "authoritarian" system is quotation marks.
Despite its economic progress, the Chinese Government is still very much a totalitarian one and horrendously oppressive; new technologies and the social credit system are deeply oppressive. It is an abusive and uber tyrannical state.
You need to think about the nature of popular acquiescence and support for the Chinese government -- it is fealty by a controlled and intimidated people rather than trust. Feudalism. I encourage you to think of China in the context of Ute Frevert's famous article on trust in the history of emotions. See "Does Trust have a History?" at https://cadmus.eui.eu/handle/1814/11258
“ it is fealty by a controlled and intimidated people rather than trust. Feudalism”
Yeah but in a good way….
Different strokes for different folks. Many people in the world aren't into "freedom" the way Americans and like-minded are. In fact, many look at this as a perversion, and that includes quite a few traditionalist Americans, mostly on religious grounds. There is no "natural law" associated with "human nature" that is owned by any culture as the US and UK pretend, based on 18th c thought.
These are different value systems. I prefer to live in the culture that I grew up in and am used to but I see no sense in trying to impose it on others who are resistant. In fact, this is what the flaming culture war in the US going on now is about, to the point of near civil war.
Moreover, most of the tears shed over this are crocodile tears and the "outrage" faux outrage. There is plenty in the US and UK on this order that the governments should be dealing with instead of criticizing others. In fact, it's descended to the level of farce.
"Socialist" China is hard on workers, and easy on billionaires. Authoritarianism is designed to repress the masses, not the 1%.
If China succumbs to corruption, they'll be humiliated once again. This is what keeps them on the straight and narrow, not some outdated ideology regarding socialism.
The definition of socialism is so watered down that people forget it involves democracy, from the workplace to the public sector.
China has adopted the capitalist consumption model - and so has the rest of the developing world. We're going over the cliff because of this juggernaut.
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