Western countries subsidize our biggest companies. China subsidizes their small ones.
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- čas přidán 25. 06. 2024
- In the United States and Europe, the biggest companies most commonly benefit from subsidies and bailouts. The "too-big-to-fail" banks like JP Morgan and Bank of America and Citigroup, struggling automakers like GM and Stallantis, and even highly profitable companies like Intel and Taiwan Semiconductor are granted billions in subsidies, low-cost loans, and aid.
In contrast, China's industrial policy involves funding thousands of small companies that show high potential in certain key industrial fields. By identifying "little giants" and "single champions", Beijing's industrial policy is bottom-up.
They begin by studying industrial sectors, and looking for chokepoints, or bottlenecks, which may be exploited by foreign countries or companies, and identify companies in China that can spin up quickly to overcome them. They also identify Chinese companies that are successful in the domestic market, and which can dominate globally if given sufficient capital, research funding, partnerships, and access to China's overseas supply chains.
The Chinese economic, political, financial, and even educational systems are organized to support these strategies, and help to explain why Chinese companies can so quickly be organized to take market share, then entire supply and value chains, in global markets.
Resources and links:
Wall Street Journal, China cultivates thousands of little giants in aerospace and telecom to outdo US
www.wsj.com/articles/china-cu...
Rice University, China is positioning itself to dominate the world's copper supply
news.rice.edu/news-releases China positioning itself to dominate world’s copper supply
Bloomberg, China's dominance in critical minerals is a serious problem for the West
www.bloomberg.com/news/articl... - Věda a technologie
Apologies to everyone. For the first hour the comments were disabled, for some reason.
Should be fine now.
@3:10; …”bottlenecks go away”…
Yes n this happens in continuous governance and budget allocation system.
What we have is a 2, 4 yearly system, and fighting for budgets. Lots of good policies got lost.
Plus, big company = big retirement for union. No no no. No failure for big company, like “fix or repair daily”, or “found on road dead”, or ….
Thanks for your informative videos and keeping comments alive. I like reading comments for the insight and perspective they bring to the table … I like being able to evaluate the legitimacy of comments myself some of which are very enlightening, others provide practice in critical thinking.
CCP CENSORS 🇨🇳
"Comments have been turned off" has been happening on quite a few vids recently on channels that don't usually do that, especially on channels that say "controversial" things.
Giving 20 billion dollars to 2000 small companies, instead of 1 big company, is a really good strategy.
In the USA, the big companies lobby for this free cash and then reward themselves with huge bonuses and dividends. It's very corrupt. In China, there is still corruption but the money filters down to get things done.
Don't forget one very very important point. China is not just about supply chain dominance, it is also about CAPITAL CONTROL. All the largest banks in China (and the world) are state owned, and many of their best companies are also state owned. The Chinese government can direct immense amount of capital, not from borrowing, to any areas they deem are of national strategic importance. This is not possible for the US and the west where most of the capital not borrowed by the governments are in the hands of private banks and companies. It is that capital control that allow China to centrally plan their industrial polices, and their economy - a Lenin innovation, and a crucial part of Marxist-Leninism. The SOEs and banks work for the people, they work for the government, they don't work for private, rent seeking parasites.
If we are going to talk about the success of the Chinese model, Socialism with Chinese characterizatics, it is time we actually give credit where credit is due and stop this western propaganda BS against socialist ideologies and concepts. It is doing a disservice to deny the most powerful philosophical tradition of criticism of capitalism. It is also irrational and foolish to keep denying the power of the socialist models which has succeeded despite western aggression and slander and misrepresentations.
Exactly. Unfortunately Marxism is not taught in the west and is considered mumbo jumbo. Richard Wolfe is the only Marxist tenured professor in the whole US university system to my knowledge
It is not in the American perception that ANY socialist/communist country could ever succeed and challenge the dominance of "EXCEPTIONALIST" America. Don't get me wrong, I prefer living in America; however, it gets rather tiresome listening to all the anti-China rhetoric when I frequently go to China and thus know the truth.
Yes! IS capital going to be controlled by the public, or by concentration in the hands of a few? That, is the struggle clearly seen in the way the competing models are working out today.
So profound. Luckily China has all the ingredients for a successful social and political system. Thanks to the US among other states, China has the opportunity of taking advantages of their biased and negative blames and turns those into constructive feedback for constant self improvements.
As recent as 2 decades ago, China did not seem to have a clear roadmap. The capability of being adaptive and motivated for serving the people, coupled with great execution, helps the nation to achieve where it is today. Proud!
Thank you🙏🏻
You’re exactly right: Agriculture, banking, the oil industry, green tech, EVs, semiconductors, auto industry____ the USA is one big corporate welfare state. It’s a joke to criticize Chinese subsidies.
Isn't THAT true. The US has provided huge subsidies (including not paying many taxes) to many of its large industries.
The rich participate in politics....ended up the rich in control the whole government so as the country....in China this is not allowed
Which industry sectors does the US subsidize? All of them!
Not sure that the US doing something in its self interest is the same thing as criticizing. In my mind, it’s more like you do you boo.
The US subsidizes reserch and development but not managenent which china seems to do, as long as they follow the government directives. which must be according to the communist party ideology objectives...
The Chinese system is based on meritocracy, so this is why China is dominating industries.
The US system is based on plutocracy.
This brings to mind the imperial examinations in china thousands of years ago, and today's gaokao.
Yeah, chinese leaders are not politicians. They are, instead, bureaucrats who are normally experts in the fields that they're in charge of.
That's a large part of the success, but the state owned (via China's central bank) investment funds and the high quality education system are other important parts. Also, assured continuity via scientificaly prepaired 5 year plans is crucial in the succes.
Yes. And the US system is a plutocracy.
This channel is objective and way better than any mainstream business media.
Can't blame the Chinese for being smart. 😊😊😊
From the Opium Wars to century of humility, China has beat the odds. Now it's a the frontier from manufacturing, space etc. Credit must be acknowledged.😅😅
This is one of the best channels in CZcams. Wisdom and insight.
Completely agree. Very few “business” channels understand finance. Very few “financial” channels understand business
Kevin has a unique background.
Share share share.
I guess the difference between President Xi and President Biden is, President Xi probably could remember the name of thousand small and potential firms in China needed help. While President Biden probably only could remember the name of few super big donors needed help.
The more I watch Keven’s videos, the smarter I get. The more I watch main stream business media, the more naive I get (ie in spite of all their reporting, not realizing what’s actually happening by who and why).
How US system works: CEOs receive big salaries- Companies fail- Government bailouts- Big Deficits- Issue Debt- repeat
glad to found your Chanel
They are basically doing what is RIGHT to be Competitive and use talents..
Unlike other countries serving GREED..
Your channel is growing really fast, a few months ago it had only a few followers ❤❤❤
Greetings, this information is really valuable to understand many things. thank you so much.
This is very powerfull
Go figure! What is the use of building more chip factories in America when China can not buy those chips? Who will buy them then?
Congress will have to eat them for breakfast lunch and dinner
The 52B subsidies to Intel have gone up in smoke as Intel recently lost 250B in stock value after China announced all telecom companies have to ditch western chips by 2027.
Predict that all those new TSMC chip factories in Arizona will never sell a single chip and will turn into a chip rust belt.
All strategies of the US have failed. They are all based on the assumption that the US still dominates the economy of the world while in fact they have become a minor player. China's contribution to the world economy exceeds that of the entire G7.
Basically China invests in companies like a venture capitalist. The US invests in companies like a bank - only in established companies .
It didn't happen this way in the U.S. from the beginning of Silicon Valley. The U.S. - USED - to have venture capitalists who looked to the long term and invested in risky businesses during the beginning of the semiconductor industry. I remember reading a long time ago when there was an economic discussion as to how the U.S. has been able to be so successful in backing their start-ups compared to countries in South America which was looking for quick returns. However, it would appear that the U.S. has caught the South American "disease" and are looking for the "low hanging fruit" more than in cultivating the trees to be more productive.
Good observations and analytics.
We the Chinese don't leave no one behind!
China playing Civilization U.S. playing call of duty
US university students are stuck in the 'Character creation' screen: she/they? pink hair? nose-earing?
Thank you.. great piece, finding the bottlenecks... beautiful
Excellent discussion with such enlightening facts. Thank-you!
Chinese have a culture of pragmatism.
Americans have a culture of affluence.
"affluence"? Are you calling us "shit heads"?... oh...I get your point.
All the affluent entitled Americans learn early at school that they must always fight for their rights to Party.
You realize the US is a composite of a multitude of cultures, right? You probably don’t, now that I think of it.
@@jaydee6268 surely you're aware, China is made of a MULTITUDE of cultures. thousands of years in the making.
My small company is in design and engineering of biotech . Perhaps if it was in China, it would be big by now
Beautifully explained 👏. Big lessons for Indian companies too
All countries subsidised their companies directly or indirectly. US had spend Trillions $$$$ in Military Industrail Complex through out the decades and neglecting their non military industries. China had long plan identified from the world bank or IMF reports on what the furture requirements, such as green technologies, etc... China had more realistic future long term plans, such as all raw material required for the green technologies, unlike USA investment in wars. Too bad USA make the wrong decission.
Where are the leaders in the US, have a clear mind? Like the Kevin? I live in the USA from China love both countries and people, don’t wanna see any bad things happen!
So profound. Luckily China has all the ingredients for a successful hybrid system, economically, socially and politically.
Thanks to the US, among other states, China has the opportunity of taking advantages of the biased and negative blames and turns those into constructive feedback for constant self improvements. If the US desires to debase China, the best way it should do is to shut up and watch China drifting by herself.
As recent as 2 decades ago, China did not seem to have a clear roadmap. The capability of being adaptive and highly motivated for serving her people, coupled with great execution, helps the nation to achieve where it is today. Proud!
"blames" is not a noun...
The way you explain those issues are really interesting and well prepared!
Holy Crap, that sounds like the BORG.
I am Mexican, my company is a small one. Here in Mexico we have everything against us as small companies, no one here understands the importance of small companies at all. It's such a heavy load...
The difference between the Chinese system and the American system can also boil down to their respective mentalities. Americans are always like, Go Big or Go Home! If you hit a home run and win the game, that's very nice. If you don't, then that's the end of it. Chinese way be like, in order to mitigate the risk, let's cross the river by feeling the stones. Achieve the goals incrementally.
Loving your two videos a day format. Keep the videos coming
Wow, so simple yet profound in effect😮❤
American politicians can not deal with failures. When investing thousands of small companies, there might more than one half ending in failures. This will invite criticism to whom made the investment decision. Such records will hurt their chances in the next election cycle. By investing in giant companies, the failure rate will be really small because the companies will survive anyway once their temporary financial hurdles are overcome. In sum, American politicians have to worry about their own survivals first before the survivals of the industries, let alone the survival of the country.
very intelligent comment...
I don't think they care about failure. Look at how much failure each administration has? Trump made a lot of mistakes, but look at how popular he is now? Electoral democracy is a clown show and voters have short memories and incomplete information. What is more important is who is lobbying. Small companies cannot compete with big companies when it comes to lobbying, this why the large company get all the goodies and policies to protect them while the small companies are just annoyance that they need to deal with.
Very informative, thank you. Keep up the good work.
It is almost impossible for China not to win when Deng xiaoping decided to move China to be the next Singapore. China today is Singapore × 1000.
Very well analysis. Bravo
The most insightful one
They are a smart and disciplined nation..that's their secret.
This guy tells the truth
"Of the ppl, By the ppl, For the ppl", guess which country is practising it, the US or China?🤣
Why you choose qingdao Kevin? Great context btw! Thanks
Qingdao is known for its great beer, having been a German colony about a hundred years ago. Beautiful urban scene and coastal landscape, mild weather, great food, ultra modern in many newer areas, meanwhile very affordable. Adequate size compared with Shanghai. Easy to travel within and outbound the city.
@@7hx89 Many of the German companies had set up shops in that area, and the Germans even opened bakery shop and resaurants in that area as well.
Wow,its seem that the Chinese ways are the true / real capitalism way.
They still practice socialism, but they do it with market economy, which is long in existence in their five thousand years of history.
Win win the companies the workers the population everyone benefits 👍🏼
Capitalism, socialisam these are western concepts not chinese, although they do use these to explain social economic development, they are but extremely limited theories with many plothose.
Therefore, to a civilization state like china, all of these "lisms" are just tools
很难得你说出了本质，没想到西方人还是有聪明人的
@@user-wz8yp3pq2l ，唉呦，您真是全球忽悠界的二哥。放眼今世，能勝過你的可能就只剩章家敦了。明知他正好說錯、弄反了，您還能正經八百地、甜言蜜語忽悠他，真是狠人一個。真行！🤣🤣🤣
I felt sorry for him that his America is failing miserably!
CEO of Ferrari said if I want to win a race, I try to get better and faster. It is naive to think I can slow the others down so that we can win. It will never work.
You earnd my respect with your fact based comments and humble expression .
Just like sir munro on ev's.
Regards engineer arshad pakistan
Unfortunately in India too we have this US type businesses supporting strategy (if we can call it a strategy) wherein a few large corporates and centi-billionaires are being given all sorts of favours and wealth accumulation is only happening at that level.
May be that's why US and India have such mutual attraction because the similar kinds of failed policies. But at least USA is 80,000 dollars per capita GDP country so US citizens may not be suffering as much as an average Indian.
Been watching some of your videos for about a month or two. And I like them because of notions (news for me), and because of the analyses.
This topic is too complex to be examined / explained in an eight minutes video.
West is guided by the market and its lobbies, while China, being sovereign when it comes to the relation between capital, market and state, is guided and ruled by the state. Imho the example of too-big-to-fail banks is misleading since China too would save its big banks in case of trouble.
When it comes to big vs medium vs small, nothing prohibits from handling big companies as a conglomerate of small companies. But China itself is managed as a big company composed of smaller aggregates. And China seems to be applying at perfection the useful concepts found in Adam Smith's "The Wealth Of Nations" - capitalism as a useful model to promote efficiency and quality. Imho we have to ask ourselves what went wrong in the West, respect to Adam Smith's. Imho it is the missing of transparency, the impossibility to measure / compare / judge when it comes to advances in quality and efficiency regarding products and regarding induced quality of life. It would be too long to develop along this. To make it short, I see it as a syndrome of "cognitive anarchy", coupled with "overcomplexity", instilled slowly and steadily in the decades of excess of "democratic" manipulation coupled with fuzzy information, that resulted in manipulators (governing classes) not being to able to recognize neither the complexity nor the need for adjustment of their "liberal" model. Kind of governed by self-referential "Plato's Shadows". We were going ahead, for too long, by pseudo-market inertia.
China doesn’t save the banks, all the large banks are owned by the state, the small private banks fail plenty of the time and they never bother to save them.
It is interesting that Apple used a ”small giant” in the US to design the M series laptops that were revoutionary in speed and low power.
Your most insightful vidéo to understand how China works
A major reason Capitalists countries actively support big companies is just plain "Bribes" - 'free' politicians always need politicking money and will kiss a snake in the "A" to get it. Single powers have their leadership - good or bad - and they can play the game to suit current (or long range) objectives easier. Thanks for your insight analysis and your interest in sharing it with us. The essence of your message - to me - is this - at some point the Western countries must decide if we simply use suitable force to take back or take over the source of essential raw materials. We will have to - Fight or Die!
Yep, the US system is a plutocracy.
Its eazy for the US they just call it by another name and its not a problem.
It's ironic that this "Chinese System" has grown out of text books taught many years in American universities. What is different is that the government officials are very knowledgeable in the subjects that they are responsible for while those in the US are popular politicians elected not because of their knowledge but base on what they stand for.
Yes it is based on meritocracy not bs itrocrity. Which us ump is good at.
Well Mr USA.
You has decided the companies are the financers of the state in stead of the people.
Its all over: Schools, education, hospitals, medical and selling very expesive crap food.
Many other very different states doing in well not doing that at all. And its allowed to unite You many states more semilar to some kind of EU as model.
I met the same 50 ways for roads,cars and drivers licenses.
Why there are not even same road signs from Fairbanks to Miami. Are teenagers more mature in some states then others.
I agree small companies has to have better help and sometimes is big is not good idea.
Kevin is really doing an excellent job here.
May be at some point in the future you could come up with policy advice for western countries politicians because I think many know the problem but don’t know how to cope with this situation.
@@jingsongyang876huh? Since when advising political solution is against Chinese government? You don't anyhow BS at here
@@jingsongyang876 Jean's talking about Western governments. Take time to read, man.
You know that can't happen. Oil barons, et al, would fight him with everything they got.
@@jingsongyang876 , As a matter of fact, as viewed from here, he would likely be deprived of his US citizenship or be exiled outside the territory of the US, or face institutionalized persecution in the name of “US national security (whatever that means in the lexicon of the US authority)", for apparently the contents of his videos are leading to the promotion of Socialism with Chinese characteristics.
Citizens are not motivated to challenge the status quo, more so when a potential solution would require higher taxes or levies.
thanks for bringing this topic to your channel and interesting analysis a lot of food for thought makes some wonder about the advantages/disadvantages of state sponsored capitalism vs western free market capitalism
Its not even free market as its a captive market by several oligarchs.
The wisdom of the Chinese people says it all...
imagine having a nation directed by people interested in the progress and strength of the nation. who happen to be very smart, as well. that is a short description of prc.
then, there's usa. run by politicians.
Excellent information, very clear. Keep it up
Vertical integration and efficiency with the support of all levels of governments, this is the Chinese ways of doing things. Kevin, how come you are not telling your viewers at the end of the video where the scenery is, lately ?
BRILLIANT ANALYSIS''''BRAVO'''
Benefitting a billion people around the world, or make 100 rich shareholders even more fatter and rotten richer...now we see this all so clearly.
As simple as that yet so many people refuse to get the reality.
What China is doing with this industrial policy is a necessary step ro ensure it is not blocked or squeezed from accessing critical technology and products important to its development and advancement. This is a hard earned lesson from decades of its economic development. In the past China was blocked by the west and Japan from technology and products or had to pay very high price to access critical technology and products. An example of this is the high speed rail where China had difficulty in getting the high tech bearings, wheels and other components from the west. It had to spent tremendous efforts and time to develop domestic supply. China is now at a stage where it will make sure that it has its own domestic supply of critical components for future technology and products.
American is too arrogant to learn from their competitors, instead to restrain and sanction them
I'm glad you turned the comments back on. When I saw they were off I was pretty sure it was done in error...
As always, great information and analysis.
True disciples of Darwinism, big is better, too big to fail, yes? Things will not change, so just seek common ground whilst reserving differences. If you don’t like being dominated by others, then don’t think you can dominate others! Simple!
When are the western governments and businesses going to listen to this guy before it's too late? Or is it better for the few to be super wealthy and the majority to be poor?
For them, it is better for a few to be super wealthy so that they can secure their own advantages. The poor know nothing anyway and they vote on issues like abortion or gay rights.
So, China follows Warren Buffet's strat, US follows "I want my big fat cut after I give you this grant" strategy.
Buffet's strategy is one of pragmatism just as the Chinese are; the only difference would be, on the scale between the two, Buffet's strategy is the introductory paragraph in an essay while the Chinese would be the supportive paragraphs of the essay.
Awesome! Go China! 👍🙏🐲🐉🌏🐼🇨🇳🙂❗️
Well identified!
Kevin ..could comment on why , despite all the China strengths you have been describing with such insight, the China and HK stock markets are not performing well ? Seems a disconnect?
The stock market is a casino, that's why.
Here in Myanmar, we literally have civil war right now, but our real estate market is still very hot with high demand...
Western funds are pulling out of China, maybe under US government's direction, that's one. Two, China is advocating common prosperity, or one can call it reigning in the big companies
Gee....its as if using massive wealth to help out small and medium enterprises is common sense....rather than throwing valuable capital at fat cat huge corporations...
If US starts to sanction Chinese universities because of national securities threats, I will be LMFAO 🤣.
it already happened long ago. Thoese universities cant use windows matlab etc. But they developed their own
America used to believe in small business too and I believe many Americans still do, but somehow they have collectively lost their way. Everything nowadays is dominated by Big Oil, Big Tech, Big Pharma, Big this, Big that. Governments favor the big names more and ignore the mom and pop corner stalls. SMEs employ more people but the government simply has forgotten that. You can even become a street food seller without going through hoops of bureaucratic paperwork.
The American economy is varied.
Successful businesses become larger and a few might even become "Big."
But if you look closely, there's always a fountain of new, small businesses particularly in progressive states that build the infrastructure to support small business development. If you live in a conservative state with no taxes and poor infrastructure, you're not getting a true picture of American small business.
The policy makers and their friends invest in the big companies and some are shareholders. The decisions they make are on behalf of their kind, not for good of country. Love and care for Country has not been a factor in their decision making for many years. Greed has taken over
in China, the only company that's too big to fail is the CPC government and all its state-owned companies, the rest of the companies are in severe competition in the biggest market in the world
Socialism for the corporations/corrupt and capitalism for the poor.
❤👍👍👍👍👍🙏🔥👏😍❤️
Don't be stupid. We subsidize our big companies as well... Evergrande, the real estate developer, has $300 billion in debt, and we have to bail it out somehow
The problem is that America's subsidies make it more expensive because there are no consequences for the company. While China makes it affordable.
Sir,
When you say big companies are slow, I agree
When you say small companies are quicker, I agree
Just that, I want to ask, is Huawei a big company or a small company ?
How come Huawei is so agile ?
Because Huawei is owned by the employees and because it's not a big Western company.
@@AnnieT369 That still doesn't negate the fact that Huawei is a *HUGE* company, and its *HUGE BUREAUCRACY* is very cumbersome !
Because the employees are the shareholders in Huawei so they’re seeking their own interests which is to build their company
nothing is 100%. Huawei is the 0.1%
Huawei is a conglomerate not just a big company, but unlike other giants, it doesn't follow the "international rules" which set in stone post cold war comparative advantage world order by uncle sam, it does everything from research to manufacturing, and they expand to anywhere, any business , any market all over the world they deemed desirable, ignoring all the rules and limitations, for which uncle sam have put there.
Chinese culture is business, just look at Chinese history.
The thin end off the wedge technique employed by china is in no way benefiting no others except them selves. My assumption I have to make is your encouraging this onslaught!
As I have said before to you,I can tell you a story about all this, a sad story, dosn’t end well.
6
So rare. White man spewing truth.
I think that you're not right. You just repeat what you heard . China probably also subsidizes big companies - because they pay for research and development and introduce new technologies. Do you think that developing 5G technology wasn't subsidized somehow by China ? In China they probably also protect financial institutions like some real estate giants which went bunkrupt. By the way China has even state owned companies which for example developed their Chinese airplane - don;'t you think this development of an airplane wasn't 100% subsidized by the state. And also in the US Boeing was subsidized during Covid. So both countries use similar subsidies for tech companies, airplane makers, agricultural production and financial companies. As for the Chips Act, China has its own Chip Fund to support domestic tech companies and help them grow under American sanctions. By they way - you said that in China they think that big companies don't innovate - seems untrue because China is very proud of Huawei which one of the biggest companies in the world and it developed many innovations like Chinese 5 G technology.
Is communist government oversight really that bad in this regard compared to techno-feudalism in the west?
Look at the Magnificent 7… prime example of an oligopoly market dominated by a select few.
Yellen and biden and all the other successful politicans should watch his videos.
Actually the Chinese strategy is learned from America. Sad thing is America forget it.
So now you admitted that there are no differences. Subsidies are subsidies.
Nations, all nations are trying their best to protect their own sovereignty, their national security. China or not.
No, they are very different. China's industrial policies are about growing into novel, sustainable industries that can keep creating new kinds of jobs, new venues of innovation and helping to uplift the little guys so they can change the country, and the world for the better. US subsidies is about sustaining dead weight, too big to fail companies so they don't have to shoulder any risks for their mistakes and often risky behaviors, and to increase asset prices for the already wealthy when they do stock buy backs. US subsidies is about helping the fat pigs, the parasites by "socializing" the losses and privatizing the profits.
They have completely different motivations because the people in power have completely different incentives. China is about revitalizing their civilization and bring common prosperity for all - dirty concepts to all neolibs capitalists in the west. The US is about keeping the workers down and continue exploitation and extraction of their labor and natural resources to enrich their rich.
China is about protecting the sovereignty of the people, the US is about protecting the sovereignty of the wealthy bourgeois.
If you insist there is no differences hence you admitted your beloved Western and America administration is just "P4riah".
It is the same but different outcome from China.
It is the same but different outcome from America. So how do you explain this indifferent yet different outcome?
@@DJs021
Your reasoning is so damn convoluted or contrived. I do not know where to begin.
@@DJs021 He can't. That's what having no Marxist education does to a person.
Meaningless statement.
“Just buy this bullsheet… they’re all alike anyways.”
You should just move to china so you can be with your people
Boy, this channel went out of its way to spread disinformation and doublespeak in this episode.
In no particular order,
The idea that the Chinese centralized government would identify "chokepoints"(I'd guess supply chain requirements mostly) that the government would finance and provide that requirement to "private" companies has to be called a massive subsidy yet appears this channel refuses to call it for what it is.
The idea that China's government only provides funding to small companies and doesn't help large is a bold lie that is contrary to evidence everywhere, yet it's understandable that the focus is on subsidizing large projects and companies... In a country the size of China, the only way to do things that actually have an effect on the people and economy and people are to support big projects like 3 Gorges, the North/South channel and heavily subsidizing the steel industry which is a critical component of every manufacturing sector in China from property development to shipbuilding to bridges, roadways and railways and export manufacturing.
Even China's BRI projects are a reflection of China's domestic industrial philosophy... Build big, and the bigger the better because it's high profile and represents China's grand capabilities.
Except for what Shenzhen used to be not that long ago, China actually doesn't promote capitalism, it's only tolerated by current CCP leadership since 2012. China's "with Chinese characteristics" philosophy has always been to manage production as much as possible by edict and that's more effective when companies are large, not small.
If China truly had a capitalistic market economy that promoted creative entrepreneurialship, you wouldn't see the massive defaults, bankruptcies and failures of entire sectors that you see in China. Instead, you'd see what happens in the US where individual events happen but very rarely an entire sector fail at once. That's because true capitalism is self-adjusting and as soon as a few events occur everyone sees those and adjust on their own to avoid the causes of those failures. When China has a problem, because so much activity is mandated, you see the same problems across many entities that share the same mismanagement and vulnerabilities.
A comment on the semiconductor industry, the CHIPS act can be considered practice normal in the world and that's what can happen when the technology is so rare and unique. You have to pay to play. And the US is willing to pay the going rate which is steep. But notice that a condition of the CHIPS act is that no similar foundries can be built in China and that US sanctions policies must be complied. TSMC and Samsung have agreed to the conditions and are in the process of building factories in the US. American companies like Intel and Micron are agreeing, too. China is free to expand its unsanctioned technology capacity as much as liked but does not have access to advanced technologies, particularly materials and machines that use American technology.
I'm not necessarily saying that China has to convert to a fully capitalistic economy but something has to be done about its mismanagement and without reforms China will never dig itself out of the hole it's in.
CCP PROPAGANDA CHANNEL 🇨🇳🇨🇳🇨🇳
And you are CIA paid troll?
Yeah.. truths hurt 😂😂😂
I really dont understand the mumbling. Can you please explain.
Domination of Supply Chains and Logistics - THE PLAN!