Could China nationalize the factories?

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Submitted by moneymaker on April 6, 2018 - 12:10pm

Or are they already owned by the government? If China kicked the US out would that cause the markets to crash? Kinda like Mexico did to the oil companies in the 70's

Submitted by spdrun on April 6, 2018 - 12:36pm.

No.

The factories aren't under direct US ownership, they're owned by local or Taiwanese contractors like Foxconn. Also, oil isn't a moving target, the product doesn't change from year to year as much as electronics which constantly need design changes and updates.

Submitted by moneymaker on April 6, 2018 - 1:09pm.

Ok so I bought right before the close. Surprised the DOW has actually been above the 200 day for so long.

Submitted by carlsbadworker on April 6, 2018 - 1:10pm.

US direct ownership in China is about $40 billion, in a country with $11 trillion GDP and $120 billion annual outward investment in other countries itself. China would be happy to exile U.S. capital. Its domestic consumption is projected to take over U.S. this year so it has a huge internal market, and definitely is not an export driven economy.

Chinese's government's biggest fear is its own citizens not foreign countries. It spends more money on "social stability" than on military each year.

Submitted by flu on April 6, 2018 - 1:49pm.

Well, considering china can change the equivalent of their constitution overnight to give the Premier unlimited term limits....Anything is possible.

And actually, yes this is exactly what China did to a lot of Taiwanese folks that started factories there. Remember the company "Apex" that use to make cheap DVD players? They threw him in jail over a contract squabble with another competitor from the Mainland.

Submitted by flu on April 6, 2018 - 1:47pm.

carlsbadworker wrote:

Chinese's government's biggest fear is its own citizens not foreign countries. It spends more money on "social stability" than on military each year.

Bingo.

Submitted by flu on April 6, 2018 - 1:48pm.

.

Submitted by The-Shoveler on April 6, 2018 - 2:10pm.

flu wrote:
carlsbadworker wrote:

Chinese's government's biggest fear is its own citizens not foreign countries. It spends more money on "social stability" than on military each year.

Bingo.

If you count Welfare, Police etc... we do too I would imagine LOL.

Seriously IMO all this trade talk is just that "talk" just yet. May end up being not such a big deal in the end, we will see I guess.

Submitted by FlyerInHi on April 6, 2018 - 2:29pm.

The-Shoveler wrote:

Seriously IMO all this trade talk is just that "talk" just yet. May end up being not such a big deal in the end, we will see I guess.

What happens when the talk amounts to nothing? We lose face and we are labeled unreliable partners.

The Russians and Chinese are master negotiators. Trump’s brinksmanship will make us poorer. He’s just rallying his base, the “forgotten folks” who don’t understand how trade works.

China is moving up the manufacturing ladder and ceding toys, clothing and other junk to Vietnam, Myanmar and Africa. In the end, the trade deficit will still be there.

Submitted by FlyerInHi on April 6, 2018 - 2:38pm.

flu wrote:
Well, considering china can change the equivalent of their constitution overnight to give the Premier unlimited term limits....Anything is possible.

Small nitpick. Xi Jinping is President. The Premier is Li Keqiang
There was actually was a long process. The Chinese first changed the Communist party platform/constitution to include Xi’s ideas. Kinda like Reagan and Milton Friedman’s ideas are part of the Republican platform. Then they convened their “congress” to change the constitution.

Submitted by flu on April 6, 2018 - 4:37pm.

The-Shoveler wrote:
flu wrote:
carlsbadworker wrote:

Chinese's government's biggest fear is its own citizens not foreign countries. It spends more money on "social stability" than on military each year.

Bingo.

If you count Welfare, Police etc... we do too I would imagine LOL.

Seriously IMO all this trade talk is just that "talk" just yet. May end up being not such a big deal in the end, we will see I guess.

Not even close of you compare the poor here tomthe poor over there.

Submitted by FlyerInHi on April 6, 2018 - 7:17pm.

The-Shoveler wrote:
flu wrote:
carlsbadworker wrote:

Chinese's government's biggest fear is its own citizens not foreign countries. It spends more money on "social stability" than on military each year.

Bingo.

If you count Welfare, Police etc... we do too I would imagine LOL.

The welfare here IS the military. That’s really the way out and up for lots of men.

Submitted by spdrun on April 6, 2018 - 7:40pm.

^^^ exactly. Now imagine giving men from poorer backgrounds a way up WITHOUT them having to commit murder (or be complicit in murder) in the name of the State. War is fundamentally a waste of resources.

Submitted by FlyerInHi on April 7, 2018 - 9:05am.

spdrun wrote:
^^^ exactly. Now imagine giving men from poorer backgrounds a way up WITHOUT them having to commit murder (or be complicit in murder) in the name of the State. War is fundamentally a waste of resources.

Education, trade and commerce is the way to enrich ourselves.

Problem is that agressive people would rather kill. It feels badass and good to kill. I've come to realize that the preponderance of people who claim to be for capital, trade and competition really suck at it. They have no idea how to start a business, buy and sell to make a living. Those same people feel entitled to lifetime jobs and prosperous lives; and they will kill to defend their way of life.

Submitted by FlyerInHi on April 18, 2018 - 8:14pm.

Looks like we moved on from China. After the comment period, tariffs might not even apply. The deplorables won't remember anyway. They will think Trump did something.

China however has taken steps. And they don't get confused.

I don't like the authoritarian governmnent of China. But we have to give credit where credit is due. The Chinese are very strategic. For example, liberalizing ownership of automakers could encourage Tesla to invest more aggressively in China. China is trying to have standards, from automotive to telecom, set for and by the Chinese market. Trump is not very smart. We are losing, not winning.

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