Stop With the BS About China, OK?
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2018-06-27 08:35 by Karl Denninger
in Foreign Policy , 156 references Ignore this thread
Stop With the BS About China, OK?
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Xi blocked HBO after John Oliver compared him to "Winnie The Pooh."

Yes, really.

HBO is now blocked China-wide.

This is the so-called "tiger" that we're all that worried about.

Let's cut the crap eh?  China is where it is because they steal from everyone -- and screw their own people.  There's plenty of theft in the world but when state-owned and operated enterprises make it their business to steal everything that's not nailed down, and plenty that is, of course they gain an "advantage."

Couple that with a communist government and you have real problems, as they have exactly zero compunction about screwing their own citizens.

The problem is that the so-called "neutral" folks (including other nations) that are supposed to stomp on that crap don't.  The reason they don't is that they all just love the short-term gain they get from it, mostly in being to offload the impact of running ruinous budget deficits.

You see, when you "soak up" all that credit you emitted in some other nation that happens to be communist you can hide the impact over here -- for a while.

Of course the problem is that such distortions cannot be maintained permanently.  But if you're a communist government you can evade any responsibility for alleged human rights.  Don't like someone?  Kill 'em or destroy their "social credit score" and suddenly they're hard-pressed to take a crap, say much less travel anywhere or have anything.

Think I'm kidding?


You could try reading this, if you have the intellect for it.  It outlines what amount to a concerted, state-sponsored and controlled program by the Chinese government to steal anything and everything they would like for their own advantage and then screw the people they allegedly "partnered" with -- if they didn't just rip it off wholesale.

Nations have always spied; that's not news nor is it extraordinary.  But this sort of program is an entirely-different thing; it's a mercantile policy built on the back of an authoritarian, totalitarian and in fact communist government that murders or suppresses anyone it doesn't like, including religious minorities.  Yes, I said communist, because they are -- if you think you have the illusion of private property ownership in China, or the ability to direct production and consumption through anything approaching an actual market you're deluded.

We could start by revoking PNTR from China and we should -- now.

We could also determine the amount of IP theft and burn that amount of their so-called "owned" Treasury Bonds on the White House lawn.  Between the two that would be a good start.

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User Info Stop With the BS About China, OK? in forum [Market-Ticker]
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Xi blocked HBO after John Oliver compared him to "Winnie The Pooh."

I burst out laughing. Good thing I didn't have a sip of coffee in my mouth. I can't even read the post because all seriousness has left me. I'll have to circle back to attempt it later.

That's funny right there, man oh man.
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Remember what happened to Fellowes?

There are few paper shredders in the world that can rip an A4 piece of paper into 2,000 pieces, and come with functions like SilentShred, SafeSense, and 100% Jam Proofand most that do have the name Fellowes printed on top. But consumers may soon be able to buy, say, the deluxe Powershred C-480Cx, without the Fellowes brand, because the companys entire business in China has been stolen by its joint venture partner.

Starting a joint venture in China is the equivalent of putting your sensitive data in the cloud. On the surface it might look secure. The provider will tell you it is secure. But in the end it is on their hardware and they can access your data.

China screwed Fellowes over by getting them to place their IP into that Chinese cloud. Once they had their hands on it they realized they could make more money by stealing everything (IP, custom molds, tooling, inventory of both parts and finished product) than by partnering with them.

China is not our friend. Any company that gets screwed over by them has it coming.
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EVERY business owned in whole or partial by Chinese national can be STATE RUN whenever the opinion of the authority-in-power see fit.

I do not know the present situation but in times gone by ALL businesses in China needed to be registered by a legal recognized CHINESE national or an Chinese legal entity. That was why all foreign business needed to have some local business or person to register to start a "joint venture". Before that ALL business were own by the government when the communist came into power; there were NO private ownership.

That system were run loosely so as to profit those in power. If you can read their national news paper you'll find corrupted minor official having their bootie, in money and property owners certificate, confiscated by truck load. You can see properties in BC, Canada and Hong Kong rocketed from the families who had their shares of the corruptions relocated into real estates. The largest business coming out of China, Alibaba, has over 60% of its ownership in the hands of those related to in power people. Alibaba stock in the US does not have any part of that ownership, only their share of the reported profit; that benefit can also be wiped out overnight.

Don't forget, their government don't have separation of powers, and their national security department has highest authority of all departments. Xi sits squarely on top and his suggestions will mutate to mandatory commands down the line; his likes and dislikes carries a whole hell lots of weight than Trump's tweet. He was filmed in commenting about the unruly behavior of reporters from certain country due to ill spoken words by a high government official of that country, and that surely gave those reporters fine excitement when all governmental official request to visit China and the invitation to a very important trade fare were denied.

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But if you're a communist government you can evade any responsibility for alleged human rights. Don't like someone? Kill 'em or destroy their "social credit score" and suddenly they're hard-pressed to take a crap, say much less travel anywhere or have anything.


I just realized... they aren't saying, "Keynesian Economics"
they're saying "Kenyansian Economics". Grass Huts for everyone!
Welcome to historys first Double Dip Depression
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Thanks for the link to that report, KD. I've been looking for something like that for a while. I've seen a bunch of the rules/behaviors listed playing out:
China uses a variety of methods to force the placement of foreign research and development facilities in China as a condition of access to the Chinese market (R&D localization).

And they want you to supply the same design software used in other research locations. No chance of that being reverse engineered, of course. Opps...
China is increasingly attempting to force foreign enterprises to localize valuable data or information within China, e.g., store their data and information on servers in China.

Counterfeiting entails the practice of producing unauthorized fake goods. Piracy is copyright infringement on a commercial scale and consists in making an unauthorized exact copynot a simple imitationof an item covered by an intellectual property right. China is the worlds largest source of counterfeit and pirated products.

I've seen warranty costs going up when the OEM that buys the parts sends back crap that we didn't supply. Sometimes you have to get down to chemical analysis before you can tell that it is a copy. And the OEM knows that they bought counterfeit parts and still send that **** back under warranty.
A significant problem facing the U.S. departments and agencies implementing these export controls (principally the Departments of Commerce, Defense, and State) is the growth in dual-use technologies, which have both military and civilian utility.

I've seen this one, too. A company that I used to work for sold some equipment to a business in China. We got investigated later when the equipment turned up being used in military R&D.

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