191–200 of 270 posts
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I meant the EU, since we are talking in the context of Europe.
The EU also tends to look less kindly on military support for the expansion of the Russian empire than military support for European states' self defence. If you're having trouble processing why, a map of Europe may be handy...
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They do not need foreign capital per se. They need foreign business expertise and technology in areas where domestic ones are not sufficient at the moment. For pure capital they have more than enough in US debt, maybe even too much, since they try to allocate as much of it as possible (e.g. using the one belt initiative) without launching RMB exchange rate into space. With the mounting up US sanctions, trade wars, an…
True, but foreign business expertise and technology uses goes hand in hand with foreign investment (otherwise, why bother?). So China isn't going to get the former, if they don't make the later easier. Ease of capital flow is one reason why Singapore has done so well (among many reasons). You can turn Singapore dollars into whatever currency you want, in whatever quantities and move it out of the country with no barr…
For example because your production capacity in China will produce your stuff for cheap and you will be able to sell this stuff with a good markup? You will not be able to easily sell the production capacity and move the resulting capital outside of China as you would in the US or EU, but as long as it operates it will generate you profit.
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Bought fully into the Russian propaganda then… you’d do well to listen to pretty much any interview by Fiona Hill and you’d quickly realise there’s nothing the US wants less than borders starting to be changed by wars; there are so many disputed lines that it could lead to conflicts all over the world. China starting a proxy war with the US and Europe is going to be extremely bad for business.
After the revelations of Seymour Hersh I'm not sure if Europe will side with the US in the future.
Capital flight will decrease (in the medium term, like by the end of the decade) as US Dollar dominance diminishes. Oil trades between China-Russia-India are now denominated in Rupee-Rubles or Renminbi-Rubles starting only this past year, and so the groundwork is already laid.
Why would USD dominance diminish? Something like 90% of IP is based out of the US. Chinese education system is a complete joke (as evidence by brain drain).
Here is a good article by the IMF that gets into how various central banks are diversifying their reserves into a broader range of currencies. https://www.imf.org/en/Blogs/Articles/2022/06/01/blog-dollar...
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They bought US debt because they are confident the US will pay it off, it’s a ROI? Not to attract capital…
No. They bought it because the excess capital produced by artificially low exchange rate used to stimulate domestic production and exports is too big to be parked anywhere else.
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No. They bought it because the excess capital produced by artificially low exchange rate used to stimulate domestic production and exports is too big to be parked anywhere else.
They didn't think it would lose money though, right?
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>because if their money is in China, they don't really own it The same can be said about money moved to the West, just with a different risk profile. As the Russian situation has shown, your property can be creatively taken away if your country of origin pisses off the US too much.
The Russians whose capital had been frozen have direct ties to and prop up Putin. I don’t think you’d be able to name a single case that isn’t T like that.
https://daily.jstor.org/communist-party-of-china/
> Regulations require that all state-owned enterprises and private companies operate party branches, and even some foreign-owned companies like Walmart have them. Internally, the organization can serve as a fertile networking ground. And for entrepreneurs, party membership often brings better relations with local government officials.
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The Russians whose capital had been frozen have direct ties to and prop up Putin. I don’t think you’d be able to name a single case that isn’t T like that.
How about Arkady Volozh? He got sanctioned not because he has "direct ties to and props up Putin", but because Yandex operates in Russia and has to follow its rules. Just look at the length of the list with sanctioned persons. Are you seriously saying that all of them have "direct ties to and prop up Putin"?
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If they were really scared of more NATO invading Ukraine is the fastest way to get a larger border with NATO (win or lose).
Ukraine joining NATO has been a hotbutton topic for the last 10 years. It was decided 6 months before the invasion that it would Ukraine would join, and I don't the two facts are entirely unrelated.
Are the increasingly tight capital controls a precursor to a war with Taiwan or because the CCP expects some other shock to occur? Is their economy expected to crash for some other reason or is this simply dictatorships love centralised control over everything especially capital?
The CCP will not go to war in Taiwan anytime soon. Maybe ever. Younger Chinese are absolutely against it, the invasion of Ukraine has undermined everything China has ever said about invasion. To mount an invasion of Taiwan would be significantly more difficult than Ukraine, and is not feasible anytime soon. In short, China cannot afford it, monetarily and they cannot afford the potential blowback in trade and investm…