The Deal Is Simple. Australia Gets Money, China Gets Australia
businessweek.com
The Deal Is Simple. Australia Gets Money, China Gets Australia
1–10 of 85 posts
Re: The Deal Is Simple. Australia Gets Money, China Gets Australia
#2Alternative Title: Chinese (amongst others) companies make money on Australian soil. Also known as "Multinationals multinationing"
Re: The Deal Is Simple. Australia Gets Money, China Gets Australia
#3Alternative Title: Chinese (amongst others) companies make money on Australian soil. Also known as "Multinationals multinationing "
Alternative Title: Capitalism at work, trade instead of war, each got what they want.
Re: The Deal Is Simple. Australia Gets Money, China Gets Australia
#4It's pretty interesting to see how intertwined China is with Australia.
If you ever want to short China, your best bet is to target Australia which already has a bit of a property bubble, mining companies that are dependent on Chinese demand, and a currency that is buoyed by commodity prices.
If China is indeed a bubble (at least in the medium-term) Australia is going to experience a world of hurt.
Re: The Deal Is Simple. Australia Gets Money, China Gets Australia
#5Alternative Title: Chinese (amongst others) companies make money on Australian soil. Also known as "Multinationals multinationing "
Alternative Title: Capitalism at work, trade instead of war, each got what they want.
I don't think it's that simple. Consider, for example, that the Australian Prime Minister, Kevin Rudd, lost his leadership largely because mining companies were upset by his plan to tax them further. From the article:
Economic and diplomatic advances, however, have not
fueled a warm national glow. Australia's proposal to
increase taxes on mining became a national issue,
precipitating a three-month barrage of anti-government
campaigns paid for by the mining industry, which in part
led to the removal in June of Prime Minister Kevin Rudd,
a Chinese-speaking former diplomat. In the August federal
election, the ruling center-left Australian Labor Party
lost its majority due in large part to massive swings
against it in the resource-rich states of Western
Australia and Queensland. Supporters of the tax argue
that the resources are not coming back and that Australia
should participate more fully in the outsize profits.
Those against include the mine operators and the many who
work in the mines; mining salaries are, on average,
Australia's highest, according to the Australian Bureau
of Statistics.Re: The Deal Is Simple. Australia Gets Money, China Gets Australia
#6Alternative Title: Chinese (amongst others) companies make money on Australian soil. Also known as "Multinationals multinationing "
Alternative Title: Capitalism at work, trade instead of war, each got what they want.
The only 2 options, really. We can trade with our fellows and produce total results that exceed our wildest dreams. Or we can take what we want and eventually be reduced to fighting over scraps.
Re: The Deal Is Simple. Australia Gets Money, China Gets Australia
#7The geopolitics are interesting, of course, but this was really interesting to me:
He now oversees a test project of driverless Komatsu trucks that cart out 300 tons at a time, moving 80,000 tons over two 12-hour shifts. When the drilling is good, he says, they can shift 120,000 tons in 24 hours. Without drivers, the trucks are more reliable, with radar sensors stopping them from crashing. They roll 24 hours a day.
Re: The Deal Is Simple. Australia Gets Money, China Gets Australia
#8It's pretty interesting to see how intertwined China is with Australia. If you ever want to short China, your best bet is to target Australia which already has a bit of a property bubble, mining companies that are dependent on Chinese demand, and a currency that is buoyed by commodity prices. If China is indeed a bubble (at least in the medium-term) Australia is going to experience a world of hurt.
If China is indeed a bubble (at least in the medium-term) Australia is going to experience a world of hurt.
Yes, but...
Australian is a commodity exporter. If China is a bubble, then yes, Australia will be hurt unless another country (US/India/Japan/Korea) picks up demand.
Also, it's not a property bubble when there are less houses than people who want them. Because the population growth rate in Australia is (comparatively) high for a developed country we have high intrinsic demand for new housing.
Re: The Deal Is Simple. Australia Gets Money, China Gets Australia
#9Alternative Title: Chinese (amongst others) companies make money on Australian soil. Also known as "Multinationals multinationing "
The original title is best. It conveys the point that China is literally and physically getting Australia.
The country of Australia is an object decreasing in size and mass, due to the super-barge-2mile-long-train-robo-dumpster IV China has paid to stick in it.
Re: The Deal Is Simple. Australia Gets Money, China Gets Australia
#10Earlier quoted context omitted.
Alternative Title: Capitalism at work, trade instead of war, each got what they want.
I don't think it's that simple. Consider, for example, that the Australian Prime Minister, Kevin Rudd, lost his leadership largely because mining companies were upset by his plan to tax them further. From the article: Economic and diplomatic advances, however, have not fueled a warm national glow. Australia's proposal to increase taxes on mining became a national issue, precipitating a three-month barrage of anti-gov…
There were other factors at work with Rudd's removal. The mining tax was the last act in a long play of dropping promises, reneging on commitments and policy backflips.
The mining tax was a disaster and, in it's original form, was reverse nationalism by stealth. The government was going to tax profits above 6% with a 40% 'super tax' - terminology straight from a Marxist script. They were then going to reimburse Miners for losses on projects. In reality, with the government participating in 40% of the profits and 40% of the losses, it was a part-nationalisation by stealth.
The reason the mining tax was so rejected, particularly by the mining states, was that it was to replace state-based mining royalties with a Federal mining tax. So instead of individual states receiving royalties for mineral wealth - as per the constitution, the tax money would be funnelled to the Federal government, which would then have power over where it was spent. The mineral states stood to lose power over their own revenues, and the non-mining states stood to gain income from activities that took place entirely outside their borders.
The tax was beloved by pro-government tax-raising types and lovers of economic theory and hated by pretty much everyone else.