5/13/2024

More China collapsing stories and USA will be better

 Yeah, right! Just pretend the US$34 trillion debt is not a problem. Just print away the problem, so simple. Let others buy their treasuries and bonds to absorb their inflation. USA does not have problems. It had been freeloading for decades and no problem about that either.

All the problems have to do with China. China has so much problems - property firms collapsing, foreign direct investments dropping, overcapacity in industries, Companies running away from China and that includes Chinese companies as well, EVs catching fire all over China, in fact China is always collapsing.

China is moving up the technology ladder and lower tech companies moving out is normal. Textiles, consumer products and toy factories have relocated to Bangladesh and Vietnam among others. Chinese companies investing overseas is to be expected. What about the days when Companies in USA were relocating in droves to China? Does that also not indicate they are running away from the USA? Only now is the USA admitting the reality and wants to claw back its industrial base. Too late! Companies go where cost is lower to make more profits. Apple's intention to move some production to India is to make bigger profits to take advantage of having only to pay 'slave wages' to Indian workers.

And yet, while foreign direct investments are falling in China, China is still exporting more than ever. How is that possible? In other words, Chinese domestic investment is compensating for the drop in FDI. And strangely, despite the reported fall in FDI, what are German CEOs visiting China for? What are USA CEOs, who went to China recently, even meeting with Xi for? Why is Tesla still expanding in China if all is gloom and doom?

China is still an important production base for Volkswagen and Tesla, producing EVs for the global market much cheaply than if they were located in the USA. USA and Europe are not the only market available for Chinese EV makers. Cheaper Chinese EVs will naturally find a ready market among lower income people in the Global South by itself. And Africa and Latin America are much bigger markets than USA and Europe combined.

Anonymous

2 comments:

Anonymous said...

Will blowing out China's candle make the USA's candle shine brighter?

Will crippling China's over capacity in EVs and other renewal energy sectors be better for the rest of the world? How is more expensive EVs going to make life better for the rest of the Global South? Only a fool will fall for all that over capacity propaganda. Take away China's contribution in every sector and the world will suffer a catastrophe of sorts.

The world can survive without wars. The world does not need weapons if there is no war. The world will survive without weapons and war. That is the reality. But the USA depends on war. The USA thrives on its war economy, its Military Industrial Complex is contributing nothing but weapon sales for countries to fight each other. As some critics mentioned, the USA cannot even make simple things to benefit the world. Nuclear missiles by the thousands, high priced fighter jets for sale to the world, ammunitions for war machines it provides to countries - where does all this stand to benefit the common people?

China is doing its part to lift people out of poverty outside its borders today. In Africa, South America, Middle East and some Pacific Islands, China is building infrastructures needed for them to progress. The USA on the other hand is creating wars to destroy those infrastructures in all parts of the world, putting people into misery and poverty. This is all a ploy to inflict backwardness and disabled the people involved from standing up, making it easier for the USA to divide and control. The same mindset inherited from the evil Anglo-Saxon Imperialist Whites of old, particularly the evil Brits.

Virgo49 said...

https://youtu.be/YwOVKMWPNag?si=fk4mAKZjwa6VDNPY

The Rots and Crumblings of the UASSA