This is why overcapacity is good for China and it would be foolish to fall into the trap set by Yellen and Blinken.
Curbing
overcapacity must never be allowed to happen. It is one big trump card
that China now holds. Using its overcapacity to kill of those who try to
upset the apple cart is a big advantage that China holds. Forget about
the claim that China's overcapacity is causing problems for others. On
the contrary, it is in the world's interest to have overcapacity by
China so that they can enjoy the 'economy of scale' and have cheaper
Chinese products that they otherwise will have to pay an arm and a leg
to afford if it comes from the USA or the West.
The USA and the
West are just using a flawed excuse to fool the world into curbing
China's overcapacity, so that they can then compete with more expensive
products, which would otherwise not be competitive in the face of
China's overcapacity. More is better than a shortage in any situation
and having is better than not having such an advantage.
We have
seen how the USA is trying to curtail China in chips, which China had
not paid much attention to in terms of being self-reliant. Chinese has
now seen the full picture and will not be caught in such a situation
anymore. After decades of letting the USA and the West enjoy the
unfettered benefits of selling chips to China, China's hand had been
bitten by snakes turning around to spit poison as well.
No way
should China follow the dictates of the USA or the West about cutting
capacity. China should not let its advantage be destroyed and should
instead build upon it, in every sector, including aviation.
Anonymous
Very soon the USA will pass a law that buying cheap is illegal and a crime. People of all countries must buy expensive things to make sure the USA can compete. In this way, the whole world would have to compete over who can turn out the most expensive things. And the USA will win hands down.
ReplyDeleteHey, it has already happened with the EU. Buying cheap Russian energy is not in the interest of the USA, and so it threatened Germany and those countries constructing the Nord Stream 2. But Russia proceeded to complete the pipeline on its own. Unable to stop it, the USA, in complicity with its Anglo-Saxon terrorists, blew up the Nord Stream pipelines.
China has voiced its support for the UN's move to conduct an investigation into who blew up the Nord Stream pipelines. Sweden objected to most people's surprise! Why is Sweden suddenly so vocal in objecting? Was Sweden the country that blew up the Nord Stream 2? Or was it jointly involved in the plot?
I believe Denmark police was involved in an earlier investigation, but called off claiming there was no 'deliberate sabotage'. Nothing further was revealed about how they reached that conclusion. Some other EU country also conducted investigations but was too timid to reveal the truth, possible under threat, but citing 'for security reasons'.
The 'no deliberate sabotage' story from the Danish police to distance itself from the investigation was really intriguing. It does not tally with reality and perception as the USA had all the motive to take down the pipelines. Even fake narratives were later invented to cover the truth, using five Ukrainian Patriots in a boat to take the blame. Even if it was physically impossible, why make such an elaborate narrative to fool the world. That the five men in a boat did it, does that not clearly show that deliberate sabotage was intended, even if that was an imaginary story.