Comments by "Valen Ron" (@valenrn8657) on "Why the US would win a trade war against China" video.
-
10
-
7
-
6
-
3
-
3
-
2
-
2
-
2
-
1
-
1
-
1
-
1
-
1
-
Michel Beauregard
That's a red herring. Cars are made by multiple smaller parts.
https://graphitepublications.com/will-chinas-outrageous-rare-earth-monopoly-persist/
China's rare earth near monopoly was built on SOE (state own enterprise) which driven private competitors from the market.
From the article (from 2010)
Heavy importers of these REEs such as the U.S., Germany, and Japan believe these rationales disguise China’s true exploitative motive: to force foreign factories to move to China to keep their costs low and their supply high
Second, importing countries have been concerned with the agglutination of Chinese mining companies in what appears to be a calculated move to make China’s monopoly even more monopolistic. Most prominently, Bao Gang Rare Earth (BGRE), a state-owned REE company forcibly merged with four smaller companies and numerous smaller companies were shut down to create a monopoly in Northern China which accounts for two-thirds of China’s output. Moreover, China’s Ministry of Industry and Information Technology (MIIT) decreed minimum production thresholds for domestic companies in early August 2012, essentially truncating the smallest REE producers as well as with 20% of China’s rare earths capacity.
Third, Chinese companies have determinedly acted to protect their monopoly by buying potential international rivals. Lynas Corp., an Australian company displayed plans to open a new REE mine when in May 2009, a company owned by the Chinese government swooped in with a $366 million bid and bought a majority stake in it.
----------
http://www.wsj.com/articles/SB10001424052748703321004575427050544485366
China Dangles Rare-Earth Resources to Lure Investment
BEIJING—China is cautiously using rare-earth resources as bait for foreign investment that could bring in sophisticated technologies that it needs.
Industry and government officials have begun talking about a Chinese government plan to offer access to its rare-earth resources—which are used in products such as hybrid-car batteries and missiles and are under strict export restrictions—to get companies including electronics manufacturers and auto makers to set up rare-earth-processing plants in China.
----------
https://theconversation.com/why-china-could-never-sign-on-to-the-trans-pacific-partnership-56361
State-owned enterprises (SOEs)
The TPP requires that no subsidies should be provided to an SOE for its international business expansion. The goal: to ensure competition between an SOE and a private enterprise takes place on a level playing field inside the host country.
But China’s 150,000 SOEs form the bedrock of the Chinese economy and therefore have certain privileges.
About a thousand SOEs are listed in the Shanghai or Shenzhen Stock Exchanges, indicating they are commercial in nature. More than 150 of these are managed by the central SASAC, and the list includes some of the largest companies in the world.
The Chinese government assists these SOEs in various ways, including preferential interest rates. Although there have been exceptions under the TPP (for example New Zealand was able to get exemptions for its powerful cooperative Fonterra), it would have been an uphill battle for China to negotiate exemptions for so many of its SOEs engaged in various international operations within TPP member countries.
---
CPTPP was designed to be anti-China SOE.
CPTPP's nominal GDP for 2018 is $13.06 Trillion (not including interested countries that wants to join CPTPP e.g. UK, South Korea, Colombia). Including UK and SK into CPTPP results in $16 Trillion economy with 619 million population.
EU's GDP minus UK has about $16.73 Trillion GDP market.
China has $14.09 Trillion GDP.
1
-
https://graphitepublications.com/will-chinas-outrageous-rare-earth-monopoly-persist/
China's rare earth near monopoly was built on SOE (state own enterprise) which driven private competitors from the market.
From the article (from 2010)
Heavy importers of these REEs such as the U.S., Germany, and Japan believe these rationales disguise China’s true exploitative motive: to force foreign factories to move to China to keep their costs low and their supply high
Second, importing countries have been concerned with the agglutination of Chinese mining companies in what appears to be a calculated move to make China’s monopoly even more monopolistic. Most prominently, Bao Gang Rare Earth (BGRE), a state-owned REE company forcibly merged with four smaller companies and numerous smaller companies were shut down to create a monopoly in Northern China which accounts for two-thirds of China’s output. Moreover, China’s Ministry of Industry and Information Technology (MIIT) decreed minimum production thresholds for domestic companies in early August 2012, essentially truncating the smallest REE producers as well as with 20% of China’s rare earths capacity.
Third, Chinese companies have determinedly acted to protect their monopoly by buying potential international rivals. Lynas Corp., an Australian company displayed plans to open a new REE mine when in May 2009, a company owned by the Chinese government swooped in with a $366 million bid and bought a majority stake in it.
1
-
1
-
1
-
LIU KUN
https://theconversation.com/why-china-could-never-sign-on-to-the-trans-pacific-partnership-56361
State-owned enterprises (SOEs)
The TPP requires that no subsidies should be provided to an SOE for its international business expansion. The goal: to ensure competition between an SOE and a private enterprise takes place on a level playing field inside the host country.
But China’s 150,000 SOEs form the bedrock of the Chinese economy and therefore have certain privileges.
About a thousand SOEs are listed in the Shanghai or Shenzhen Stock Exchanges, indicating they are commercial in nature. More than 150 of these are managed by the central SASAC, and the list includes some of the largest companies in the world.
The Chinese government assists these SOEs in various ways, including preferential interest rates. Although there have been exceptions under the TPP (for example New Zealand was able to get exemptions for its powerful cooperative Fonterra), it would have been an uphill battle for China to negotiate exemptions for so many of its SOEs engaged in various international operations within TPP member countries.
-----
CPTPP was designed to be anti-China SOE.
Using IMF 2018 GDP numbers
CPTTP has 11 Pacific ocean countries with $13.06 Trillion GDP market with Japan, Canada, Australia and Mexico as it's major economies.
South Korea joins CPTTP sometime in 2018.
UK is interested joining CPTTP after Brexit.
Including UK and SK into CPTPP results in $16 Trillion economy with 619 million population.?
EU's GDP minus UK has about $16.73 Trillion GDP market.
Australia, Canada, Malaysia, New Zealand, Brunei and Singapore are already part of British Commonwealth countries.
China has 14.09 Trillion GDP.
1
-
1
-
1
-
1
-
Miro Mato
On ZTE,
https://www.law.columbia.edu/node/5344/beyond-ownership-state-capitalism-and-chinese-firm-curtis-j-milhaupt-and-wentong-zheng
For some mixed-ownership firms, classifying their ownership type is difficult also because of the way they are managed. A prominent example is ZTE Corporation (ZTE), China’s second largest telecommunication equipment manufacturer and the subject of a U.S. House Committee investigation in 2012. ZTE’s shares are listed on both the Shenzhen and Hong Kong Stock Exchanges. ZTE’s largest shareholder is ZTE Holdings, which owns 30.76% of ZTE’s shares (see Fig. 1).[9] Under both Chinese and Hong Kong law, 30% is the point at which a shareholder is considered to have acquired a large enough stake to trigger a mandatory tender offer requirement. The shares of ZTE Holdings, in turn, are held by Xi’an Microelectronics (34%), Aerospace Guangyu (17%), and Zhongxing WXT (49%). Xi’an Micro Electronics and Aerospace Guangyu are both SOEs. State-owned entities, therefore, control 51% of ZTE Holdings
A 51 percent SOE(State-owned entities) ZTE engaging in normal international goods trade distorts the international trade market.
1
-
1
-
1
-
1
-
1
-
1
-
1
-
1
-
1
-
1
-
1
-
1