Skip to main content

China’s newish security laws

 On the one hand, China wants to attract foreign direct investment so that its population continues to prosper on the other hand China has become fearful of foreigners and threats them as convenience scapegoats.

The new securities law that were installed more than 18 months ago are not starting to bite. The reason is that since the Covid barriers have been lifted investors are starting to return to China. 

It has been noticed that many consulting firms have either sold or shut down their Chinese operations, and these operations were specifically created to bring new North American or European investors to China

Oh, it is widely known that travel between Canada and China is only 20% of what it was prior to the Covid epidemic with the US travel is less than 10% of what it used to be. This is a fundamental shift in the American investors mindset that China is a good place to invest. In fact, the numbers for China are not that good labour costs and political risk have risen;  there are easier and closer options than China as a manufacturing centre.

In addition, the US government has made the export of certain semiconductor illegal to China further complicating the process of manufacturing in China.  It would seem at first that controlling all aspect of China is more important, economic growth. If this is the case, then things for Taiwan are rather Grimm. The reason is that if China is on a nationalistic path, then bringing back Taiwan into the fold is important, it would seems that China is disregarding the lessons that Russia has failed to learn over the past 12 months it is possible that this lesson is not seen as very important to the Chinese leadership.

The reality of China today is that with a rapidly declining birth rate and rapidly ageing population China is at a inflection point, and it is important to recognize the China and the CPP are not the same thing and it may be in the interest of the CPP to engage into a limited war to regain power over Taiwan rather than economic expansion it would enable the CPP to control the decline as opposed to being forced to see it imposed by third-party 

One thing for sure, if you are a westerner and were planning to go to China for anything else than tourism you should reconsider your travel decision. It is unlikely that you know what the Chinese consider secrets, it has even been indicated that what is considered secret changes from time to time, and can even include the most innocuous information. 

One thing for sure is that for Americans travelling to China.  It will be almost impossible to obtain insurance and that will kill trade between China and America. 

Comments

Post a Comment

Popular posts from this blog

Ok so I lied...a little (revised)

When we began looking at farming in 2013/14 as something we both wanted to do as a "second career" we invested time and money to understand what sector of farming was profitable.  A few things emerged, First, high-quality, source-proven, organic farm products consistently have much higher profit margins.  Secondly, transformation accounted for nearly 80% of total profits, and production and distribution accounted for 20% of profits: Farmers and retailers have low profit margins and the middle bits make all the money. A profitable farm operation needs to be involved in the transformation of its produce.  The low-hanging fruits: cheese and butter.  Milk, generates a profit margin of 5% to 8%, depending on milk quality.  Transformed into cheese and butter, and the profit margin rises to 40% (Taking into account all costs).  Second:  20% of a steer carcass is ground beef quality.  The price is low, because (a) a high percentage of the carcass, and (b)...
Post a Comment
Read more

Spray painting Taylor Swift G650 aircraft (updated)

 First, a bit of paint will not harm anyone.  These climate activities are going to learn two things in the next few days:  (1) Trespassing at an airport is a felony almost anywhere in the world.  That means criminal prosecution.   (2) removing paint from an aircraft is expensive.   So these climate activists are about to find out the reach of the British criminal system and it will not be pleasant, the UK has very strict laws about that, I would be surprised if cleaning the aircraft of all the paint will cost less than $100,000.     I am sure that when they planned (premeditation) this little show they had a very valid logic to doing this.  Tonight, they are probably realizing the depth of their troubles.   I understand that in the UK it's a minimum one-year jail sentence.    Also, good luck travelling with a criminal trespass charge against you.  I am relatively certain that the airline industry will ...
Post a Comment
Read more

Janet Yellen from China supporter to Hawk...

There is rarely serious news in the world these days, it seems that most newspapers are filled with headlines and little else, and then Ms Yellen went to China.  Secretary Yellen has long been known in the Biden administration as the voice of moderation when dealing with China, yet as her trip which concluded yesterday a hawk was born:  She warned the Chinese against dumping goods in the United States.    fighting words! The American administration is very concerned about the lack of Chinese domestic consumption.   Even before the COVID-19 epidemic, there were already the beginning signs of a slowdown, automobile sales were off.   China is facing domestic deflation (a clear sign of collapsing demand) China imports few consumer goods, they import raw materials and intermediary goods.   It seems that the American administration is concerned that the Chinese administration will dump consumer goods abroad to keep its manufacturing machinery ...
Post a Comment
Read more