Author: tradervic

Chinese Economy Still Really State Run? [Copy link] 中文

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Post time 2008-7-25 23:50:48 |Display all floors
Originally posted by totothedog at 7/24/2008 04:34 PM
China's taxation rate

... has been a source of issue with foreign companies playing local governments against each other.  If my hazy memory serves - examples of foreign companies (whether indepedent or in joint venture with Chinese firms) not paying taxes, on the threat of withdrawling the factory.

Sorry toto - but that supposed strength is still a weakness for the state run/managed economies in P.R. China.
China's Eccentric 'Uncle Laowai' from Chicago, IL

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Post time 2008-7-26 12:37:40 |Display all floors
.we hold  a mind that whatever form of the ownership of the economic entity, it shall run on a market-oriented system and mechanism, if any entity is proved unadaptable and unadoptable to the said market, it will be phased out soon or late, decided by time being.

in past decades, numerous officials in governments resigned and jumped into business sea, they have strived for decades-long business, nothing odd in this regard. mr. heshen think.

regarding the stockmarket, indeed, state-owned enterprises take a big percentage, this indicates China's capital market is still underdeveloped, and need to be pushed forward in order to change the backward situation that lags behind realistic progress

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Post time 2008-7-26 12:43:57 |Display all floors
pragmatism is actually prevailing and become a dominant social ideology

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Post time 2008-7-26 14:59:56 |Display all floors
please distinguish two different conceptions, state-owned and state-run.

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Post time 2008-7-26 20:31:22 |Display all floors

Some points like to raise

Interesting discussion and topics so far. i would like to make a few points :

1) Telecom industry in China was financed and set up by overseas companys falling over each other with the promise of rich spoils into the china consumer market. i think the Chinese gov had the power but not the money / funding to do this.

2) Alot of the SOE are indeed run by political parties sons and daughters. This maybe is not bad as these sons and daughters usually have had a good education ( maybe overseas ) so are in a good position to bring good experience back. However as we all know in China, power is traded for money and this is where the corruption comes in.  Again maybe this is more of a 'human dimension' rather than a Chinese phenomena but perhaps to much temptation is put in front of people . Again there is not enough corporate Governance or accountability. I am sure if this was enforced with checks then alot of the issues would be solved

3) IPR is a huge huge issue for China. I work for technology companys and they really are very scared to do leading research in China . Chinese people work very hard but a big company does not appreciate it staff doing over time when it means Xeroxing the spec at night to a competitor. Again maybe the safe guards not there.....

As well as this issue, as IPR not enforced ( video, software etc) this will mean that the likes of technology industry not able to properly develop. MAybe with the space program this changes but IT and software are base grassroots technology that help advance economic power and clout. And yes really needs a real and valid degree... it does not make sense a party members family with no knowlege running such a company

4) There is the law of the land and there is power of the land. At the end of the day the Power can do anything. AS a simple example just watch the red numbered cars go through the red lights or up one way street. Again this seems acceptible to average Chinese. From a westerners we think not fair ...but there again as long as most Chinese happy this should be the norm. WE are the visitors remember

5) Old way business China is Guanxi style. This works fine in a closed economy but if Chinese companys to embrace the world like lenova etc, then success will not be on who you know alone but also on your leading edged technology ..Refer to importance of IPR that needed to stimulate

6) Alot of the growth in China due to dirty industry such as iron , steal, coal, car building etc. Basically the WEst has shipped all its dirty industry abroad to China, reaps a good deal of the profit. Its kind of like the leaders accept this banditary as it provides millions of jobs. Again this is fine maybe at the beginning to stimulate growth but long term one needs intelligent industries , financial industries, pharmacy and so on. For these one needs IPR this will leverage higher paid jobs and higher standard living

7) China needs to stimulate internal consumption. MAybe taxation for companys that small too high. I see many many small company now going out of business and many people losing jobs. this is not good for the internal consumption especailly as exports also dropping. Difficult situation but looks like the big become only bigger squeezing small competition out. At end only state survived companys as no incentive for sme to survive with no profit. this is dangerous as these are the grass roots or 'plankton' to feed and give jobs to the masses

Anyways ..that 7 points for openers. Keep the discussions flowing. i think china is a great place but to become even greater some fundamental thinking shifts need to happen over time .......................:-0

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Post time 2008-7-27 16:27:35 |Display all floors
i have ever seen some fading socialism solgans remained dimly distinguishable on old red-brick walls somewhere, in some big state-owned factory wharehouse in city or dismissed community headquarters in countryside.

also from some propaganda books or leadership works, we are able to read some knowledge about socialism.

but in realitic life, it is hard for us to judge if anything is socialist or not.

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Post time 2008-7-27 16:30:31 |Display all floors
for economy, whether is socialist or capitalist, if it become a thing let people feel uncomfortable, shall be criticised and shall be improved, i think. to have a reasonable and better economy system is vital thing to everybody

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