Changing China Set to Shake World Economy, Again

[Credo]

Please explain how a $1 bowl of noodles in China is different from a $1 McDonald's or Taco Bell meal?

Poor is poor, by the way.

[NeverSure]

For all it's economic might (#2 in the world) and gargantuan population, China still has not one recognizable brand name. Quite a contrast to little countries like UK, Netherlands, Switzerland.

I agree with you at times it seems hard for the world to fathom and think china may be behind the world in innovation and inventing.

With a domestic market of 1.3 billion, there are at times little motivation to step into the international markets and the products are made for the Chinese market and have an extensive following

Those who have been following iPhone story within china and their inability to link a deal with china mobile will discover the local version called "xiaomi" it thumps the iPhone in price and apps catered for the Chinese market and is proving to be the phone of the masses who cannot afford a samsung and iPhone.

...almost a reminder how jolibee beats MacD in the Philippines just for catering to the locals.

Have a look at this link, these brands are well known in China and cater to the markets in china. The revenue is staggering for these brands.

http://www.businessinsider.com/top-chinese-brands-2011-10?op=1

A lot of those are banks and insurance companies which have been making a lot of money on paper, but are up to their eyeballs in dodgy construction loans. Insurance companies are buried in and create the shadow banking system which is loaded with shaky loans.

A lot of them make products to eat or drink and none of it will ever go into most Westerner's mouths. The West has testing and rejection of foods.

One of them is a land line telephone service which can't be exported. Horse and buggy comes to mind.

If you really look at them one at a time, they won't fly in the West so they have to rely on their own market. That's not how you build an international economy.

With so much of China's current GDP being construction, one has to wonder why that list isn't loaded with the construction companies that the banks and insurance companies lend to.

If that's the best list China can come up with...

[LawrenceChee]

Please explain how a $1 bowl of noodles in China is different from a $1 McDonald's or Ava Taco Bell meal?

Poor is poor, by the way.

http://downtowntraveler.com/2011/01/30/best-of-china-top-5-street-foods-in-xiamen-photos

He

[LawrenceChee]

New IOS7 is playing games with the keyboard...

Have a look at the variety of street food for under $1 and this is in Xiamen, an affluent coastal city.

This in my books means having the choice of filling food in comparison to the $1 menu items in McD much as I love McD.

[LawrenceChee]

For all it's economic might (#2 in the world) and gargantuan population, China still has not one recognizable brand name. Quite a contrast to little countries like UK, Netherlands, Switzerland.

I agree with you at times it seems hard for the world to fathom and think china may be behind the world in innovation and inventing.

With a domestic market of 1.3 billion, there are at times little motivation to step into the international markets and the products are made for the Chinese market and have an extensive following

Those who have been following iPhone story within china and their inability to link a deal with china mobile will discover the local version called "xiaomi" it thumps the iPhone in price and apps catered for the Chinese market and is proving to be the phone of the masses who cannot afford a samsung and iPhone.

...almost a reminder how jolibee beats MacD in the Philippines just for catering to the locals.

Have a look at this link, these brands are well known in China and cater to the markets in china. The revenue is staggering for these brands.

http://www.businessinsider.com/top-chinese-brands-2011-10?op=1

A lot of those are banks and insurance companies which have been making a lot of money on paper, but are up to their eyeballs in dodgy construction loans. Insurance companies are buried in and create the shadow banking system which is loaded with shaky loans.

A lot of them make products to eat or drink and none of it will ever go into most Westerner's mouths. The West has testing and rejection of foods.

One of them is a land line telephone service which can't be exported. Horse and buggy comes to mind.

If you really look at them one at a time, they won't fly in the West so they have to rely on their own market. That's not how you build an international economy.

With so much of China's current GDP being construction, one has to wonder why that list isn't loaded with the construction companies that the banks and insurance companies lend to.

If that's the best list China can come up with...

You are right Neversure. The CEOs of these Chinese firms know focusing on a developing market right at your own backyard makes more financial sense than trying to compete overseas.

Wahaha a F&B giant makes everything that Coke and Pepsi doesn't for the Chinese taste and prosper thru it.

Alibaba and Taobao founder saw yahoo in USA and envision a sit just for the Chinese and today the ecommerce revenue puts them in a position to consider buying a stake in yahoo.

Same goes for tencent founder of qq.com who saw the Facebook model and made it into a revenue model even Mark Z. has asked his own team to emulate.

[Publicus]

CCP-PRC society already is coming apart.

The outbreak in recent years of mass violence by frustrated PRChinese citizens has only increased while the CCP and its government has been unable to prevent the increasing incidence of public mass violence nor to curb it.

The most dangerous and threatening aspect of the new development of public mass violence in the CCP-PRC is that the mass of citizens support it against the corrupt and callous officials of the CCP which, of course, runs the government.

Here are some relevant quotes and a news story that speaks directly to the new development that is shaking the CCP to its foundation, i.e., mass violence against the government supported by the mass of the population.

In recent years, China has witnessed a series of bombings and murders in public places, killing and injuring innocent people. Many have warned that China is seeing a wave of what has been called “new-style terrorism” – criminology professor Wu Boqin, for example, has said that these incidents are “individual crimes of suicidal terrorism.”

However, these incidents are often been met with understanding, and even support, from the public. For example, when 60-year-old petitioner Chen Shuizong killed 47 people (including himself) by setting fire to a crowded bus in Xiamen, capital of Fujian Province on June 7, he received messages of sympathy online. According to some commenters, Chen’s only fault was killing ordinary people – they believed he should have targeted government personnel.

In a more recent case, Ji Zhongxing, a disabled 33-year-old petitioner, detonated a home-made bomb at Beijing airport on July 20, injuring himself and a security guard. Since Ji caused far fewer casualties than previous attackers, he received an unprecedented outpouring of sympathy. This sets a very dangerous precedent – no violent act directed at the public should be tolerated or encouraged.

China must prevent a “hard landing” of public frustration

Many liken Chinese society to a pressure cooker with no release valve.

But for its part, the government must acknowledge that, given the rampant injustice embedded in the current legal and political system, they themselves are responsible for the growing public hatred towards China’s authorities. To a large extent, sympathy for these crimes reflects public frustration with the existing legal system – it is relatively easy for Chinese people to understand the rationale of those who have been pushed over the edge.

Many liken Chinese society to a pressure cooker with no release valve. With the recent spate of suicidal violence, there is concern that societal tension may soon exceed its limit, and trigger widespread unrest. A “hard landing” of public frustration would be more damaging than a hard landing for China’s economy.

http://www.newschinamag.com/magazine/china-must-prevent-a-hard-landing-of-public-frustration

[Publicus]

Political oppression and repression continue to be paramount in the CCP-PRC, placing economic development concerns secondary to the CCP preserving and extending its sinister authority and control over the country's political economy.

Many prominent capitalists and other businessmen who operate largely outside of CCP circles are being attacked and repressed by CCP authorities when they seek greater autonomy and political independence in their corporate and business opportunities.

The long time owners of QQ.com, the incestuous, inside the PRC only equivalent of Hotmail, are long time agents of the CCP and have no troubles or difficulties relative to the CCP.

But businessmen bloggers and Chinese venture capitalists, who go online to favor greater political freedom and participation, are being identified and persecuted; they are singled out - in large numbers - for punitive discrimination by and from the CCP. Weibo.com is another, incestuous, inside the CCP-PRC only Tweeter style website where businessmen's tweets are read regularly by millions of PRChinese who advocate free and open political discussion and debate.

In other words, when the geese that lay the golden eggs start making noises about political liberties and rights, that's when the hammer comes down from Beijing.

The article below is by one of the leading global experts on the CCP-PRC, Elizabeth Economy of the private Council on Foreign Relations, based in New York City and founded in 1921. I would recommend people interested in these issues Google her to read her many articles and books about the CCP-PRC.

A Chill, Ill Wind Blows Across China

Alongside the anti-corruption campaign, a crackdown against Chinese netizens is also in full-swing.

Nominally designed to limit online rumor-mongering—people may be charged with defamation if their "rumors" are read by 5,000 users or forwarded more than 500 times—the crackdown has landed squarely on the shoulders of some of China’s most popular, politically outspoken businessmen bloggers: venture capitalist Wang Gongquan has been detained on charges of “gathering a crowd to disturb order in public places”; Chinese-American investor Charles Xue was arrested on prostitution charges; and billionaire real estate investor Pan Shiyi has not been arrested or detained but appeared on television to say that it was important for those with large followings to “tweet responsibly.” Each of these prominent business personalities has boasted well over a million Weibo followers at one time or another.

Other priorities such as building a social welfare net, protecting the environment, and reforming the economy are still in the familiar planning and blueprint stages.

http://thediplomat.com/china-power/a-chill-ill-wind-blows-across-china/

[LawrenceChee]

I am pretty sure most would relish a chance to speak to Ma Huateng, the owner of tencent holdings that founded qq.com.

I have spoken to him before and he is a moderate and frequently asked for his opinions by the government on the balance between voicing your views and being socially responsible.

He founded the 3rd biggest internet company in the world after google and amazon, if anyone tell him face front that his company is what you described...he would not have been impressed and told you right at your face.

He has little patience for bigotry views and didn't make his fortune by being timid

[Publicus]

http://m.bbc.co.uk/news/world-us-canada-24039202

This report suggests for the USA that the income disparity has widen to its worst

Living on $2-$5 a day needs to be taken into context as you can find noodles or fried rice for $1 a bowl in most markets and a cup of bowl instant noodles is $0.30 in the supermarket hard to find that in developed countries where the only $1 menu items is found in McDonalds or TacoBell ...although a TacoBell would be very welcome in Chiang Mai :-)

The Gini Coefficient is the well known measuring technique invented by the Italian social scientist that is respected for determining the level at which income inequality and disparity produces social unrest which ranges from demonstrations and public protests to revolt and revolution.

The Gini Coefficient ranges from 0 to 1, with 0.4 being the point at which income disparities become great enough to cause social disorder and social disruptions against governments and ruling economic elites, whether in a democracy or in a system of dictatorship.

The Gini coefficient for the CCP-PRC is 0.61, which is a measurement that is much higher than the alarm level of 0.4, as shown by a report from the Survey and Research Center for China Household Finance.

The United States is in a recession, which accounts for the recent increase in income disparity there. A recession is a normal occurrence in a market economy - it is a correction to economic and financial conditions that occurs normally. While unpleasant, a recession is a rational and explainable event to normal and natural economic development. Recessions are naturally followed by recovery.

The CCP, however, does not allow for or admit to recession. The CCP's command economy is artificially structured to defy natural market conditions that are more controllable in a regulated market economy.

The CCP's problem is that the vast income disparity and inequality of the PRC is structural, inherent. It is worsened by the massive and endemic corruption of the CCP, a corruption well known to the the PRChinese people and resented by them very profoundly, very deeply and powerfully.

The absence of recessions in the PRC continually distorts the CCP's economy to the point of its becoming mangled and irreparable.

As the following quote indicates, the CCP has much to be worried about concerning the PRChinese people who are fed up by its authoritarian and self serving and corrupt rule which is characterized by its ancient philosophy of "authoritarian resilience" as opposed to the democratic reforms the modernized PRChinese people increasingly demand..

The government has for the eleventh straight year refused to publish the Gini coefficient because it claims that data on high-income groups is incomplete. But Caixin Online reports that it is because the government wants to mask the wealth gap in the country, another cause of unrest among the public.

Academics like Minxin Pei (in a Project Syndicate column) have warned that the Communist Party is right to worry about its future:

The CCP’s monopoly of public moral authority is long gone, and now its monopoly of political power is at risk as well. That loss is compounded by the collapse of the Party’s credibility among ordinary people.

For a regime whose credibility is gone, the costs of maintaining power are exorbitant – and eventually unbearable – because it must resort to repression more frequently and heavily.

But repression is yielding diminishing returns for the Party, owing to a third revolutionary development: the dramatic decline in the cost of collective action. ...If governing by fear is no longer tenable, China’s new rulers must start fearing for the CCP's future.

To this point, Cheng Li at the Brooking Institution has warned that if the CCP intends to regain the public’s confidence and avoid a bottom-up revolution, it must abandon the notion of “authoritarian resilience” and embrace a systematic democratic transition.

If the Communist Party wants to secure its future, it needs to ensure that it is heeding the concerns of the public by bridging income inequality and stamping out corruption.

Here's How We Know Beijing Is Terrified About Social Unrest

It's been 91 years since China's Communist Party was first founded but the party is growing increasingly antsy about its survival.

The public has grown increasingly outraged by the wealth gap, land grabs, incidents like the high speed rail crash, and government efforts to suppress protests and censorship.

The UN has said 0.4 is the level beyond which there is a risk of social unrest and China is reported to have a Gini coefficient above that critical level.

Read more: http://www.businessinsider.com/heres-how-we-know-beijing-is-terrified-about-social-rest-2012-11#ixzz2fbhOoSCD

[Publicus]

I am pretty sure most would relish a chance to speak to Ma Huateng, the owner of tencent holdings that founded qq.com.

I have spoken to him before and he is a moderate and frequently asked for his opinions by the government on the balance between voicing your views and being socially responsible.

He founded the 3rd biggest internet company in the world after google and amazon, if anyone tell him face front that his company is what you described...he would not have been impressed and told you right at your face.

He has little patience for bigotry views and didn't make his fortune by being timid

Tencent Holdings Inc, commonly known as QQ.com is incestuous.

It can by used only inside the CCP-PRC.

The CCP strictly prohibits the sheeple of the PRChina having any contact with the world outside of the CCP's PRC.

CNN and the BBC are available only at hotels frequented by Western foreign devils, or in the apartments of Western foreign devils at great expense and only after great bureaucratic difficulty with the government.

Ma Hualeng is an agent of the CCP and his Tencent Holdings Co Inc, commonly known as qq.com is controlled by Ma and his bosses in the CCP in Beijing.

I'd be more than pleased to say to his face that he and his Tencent Holdings and QQ.com are incestuous.

I'd welcome his response. And I'd further respond to him. Of that there is no doubt.

Ma Hualeng would not be used to being spoken to as I would speak to him. I'd be very pleased to speak personally, face to face, with Ma Hualeng, the PRChinese bossman.

You are invited to arrange the meeting. I await your response.

You yourself would be welcome to translate and to interpret.

(You and I could split travel expenses, 50-50.)

I'd love to tell Ma Hualeng he and his operation are incestuous.

[Scott]

An off-topic, inflammatory post has been deleted.

Please stay on topic and refrain from making personal comments about other posters.

[LawrenceChee]

PM me your details and I will arrange the meeting

He speaks perfect English and you don't need a translator.

[copa8]

For all it's economic might (#2 in the world) and gargantuan population, China still has not one recognizable brand name. Quite a contrast to little countries like UK, Netherlands, Switzerland.

UK, the Netherlands & Switzerland had gone through their industrialization over a hundred years ago. In contrast, China just started recently in the latter half of the 20th century. Also, it went through turmoils such as the Cultural Revolution, which in addition to the brain drain, killed millions. Give China another 50 or years, and things would be different. Anyway, even now, if China sneezes, the world catches a cold. I doubt relatively unimportant countries like the three listed has that kind of an effect.

[Publicus]

For all it's economic might (#2 in the world) and gargantuan population, China still has not one recognizable brand name. Quite a contrast to little countries like UK, Netherlands, Switzerland.

UK, the Netherlands & Switzerland had gone through their industrialization over a hundred years ago. In contrast, China just started recently in the latter half of the 20th century. Also, it went through turmoils such as the Cultural Revolution, which in addition to the brain drain, killed millions. Give China another 50 or years, and things would be different. Anyway, even now, if China sneezes, the world catches a cold. I doubt relatively unimportant countries like the three listed has that kind of an effect.

The world hasn't any idea what the CCP-PRC will be like five years from now, given that its economy and financial system are severely on the ropes, never mind 50 years from now. Your proposition can sound good on the face of it, but in reality is meaningless and unworthy of serious consideration.

The only reason the CCP-PRC has developed at all is that it has been able to draw heavily on the multiple trillions of dollars of capital the West has constructed over the past 200+ years. The CCP has attached itself to these multiple trillions of dollars of investment and development capital because the CCP started out with virtually no capital to develop itself and was completely unable to develop itself drawing on its own limited or non-existent capital resources.

The UK, the Netherlands and Switzerland have been major forces and factors in initiating and developing the multiple trillions of dollars of capital over the past 250 years that, in combination with the development of additional trillions of dollars of capital by other countries, such as the United States, have enabled the CCP to initiate and pursue some measure of economic development, during the past 30 years especially and in particular due to Deng Xiao Ping's "opening up" of the CCP's economy (only) to massive amounts of Western capital.

In 1949 when Mao Zee Dung proclaimed the People's Republic of China the only capital the CCP had was Beijing. Thirty years ago, when Deng proclaimed an economic "opening up" to the West, the only capital the CCP had was, well, Beijing.

Presently the CCP-PRC has multiple trillions of foreign capital, i.e., Western capital, invested in it. If anything, the CCP-PRC is presently a wholly owned subsidiary of Western capital co inc ltd. For all we know presently, China 50 years from now may be but a department of Western capital co inc ltd, minus the increasingly failing CCP.

[Publicus]

PM me your details and I will arrange the meeting

He speaks perfect English and you don't need a translator.

PM by yours truly sent to you as you requested.

I look forward to your positive response.

And if Ma Hua Leng speaks "perfect English," then he speaks better English that I do as a native speaker of English.

I wonder how he managed to have accomplished that considerable feat.

I mean, because of Mao's Cultural Revolution - as the West calls it - an entire generation and more people than that were precluded any education. Native English speaking foreign devils were not allowed in the Culturally Revolutionary CCP-PRC and, frankly, none wanted to go to that hellhole to try to teach English.

It's only during the past decade that the PRChinese in the PRC have had Western foreign devils present to teach English at all levels of formal education and in proprietary private schools and language training centers. Perhaps Mr. Ma studied abroad, in a native English speaking country, in which case he would have had to be a member of the elite of the CCP-PRC.

At any rate, I do look forward to meeting Mr Ma to advise him that his Tencent Holdings aka qq.com is incestuous culturally, socially, politically, because it allows internet communication only within the CCP-PRC. No one in the CCP-PRC can use a PRChinese internet company to access the internet to communicate with the outside world.

MSN is the usual vehicle by which netizens of the CCP-PRC can communicate online with the world outside of the PRChina. Not many choose to use MSN or to go online external to the CCP-PRC because the Big Brother CCP is monitoring you.

[Publicus]

Uh, well, Mr Chee has responded to my PM to him, which he had invited.

He'd invited me in a public post to PM him so he can arrange a meeting between myself and Mr Ma Hualeng, the big cheese in establishing the socially and culturally incestuous, i.e., in the PRChina only, internet corporation QQ.com, aka Tencent Holdings Co Inc Ltd.

As the Rules prohibit making public PM discussions, I'll only reference that Mr. Chee did PM me to invite me to PM him so he can arrange a personal, face to face meeting with Mr Ma so I can say to Ma's face that his qq.com, inside the PRC only internet version of Hotmail, is incestuous culturally and socially.

So I just wanted to report that, despite my great interest in meeting Mr Ma, the meeting suggested by Mr Chee apparently will not occur.

I am greatly disappointed.

I have a lot to say to the Chinese bossman, Mr Ma. However, given the CCP's culture of censorship, punishment, and the arrogance of authoritarian Chinese bossmen such as Ma Hua Leng, my requirements of First Amendment guarantees is denied and the original invitation is thereby withdrawn (in so many words). So the meeting in Beijing cannot occur.

In fact, my insistence on First Amendment guarantees is denied and is denied in rather harsh terms, terms written in both English and in Chinese.

I reiterate that I'm very disappointed all around in this matter.

Anyway, I would add the following to the point about PRChinese incestuous corporations:

The emerging-brand battle

THE past 20 years have seen a massive redistribution of economic power to the emerging world.

But so far there has been no comparable redistribution of brand power. Fortune magazine’s 2012 list of the largest 500 companies by sales revenue included 73 Chinese firms, more than from any other country except the United States, with 132.

Yet Interbrand’s 2012 list of the 100 “best global brands” included not one Chinese firm.

Many of the obstacles in emerging-market companies’ paths to global prominence are of their own making. An obsession with market share at all costs can fatally undermine their finances. A habit of pilfering foreigners’ ideas can discourage them from developing distinctive products and brand identities. A reluctance to employ foreigners as managers may make it hard to understand other cultures, and thus to crack new markets.

http://www.economist.com/news/business/21579791-western-brands-are-coming-under-siege-developing-country-ones-emerging-brand-battle

To which I would reiterate the limitation of being incestuous culturally, socially, politically.

[LawrenceChee]

I can confirm that the invitation is rescind as I could not deliver to all the security requests as stated and needed for the meeting to happen.

It is disappointing. Guanxi to open doors for meaningful discussions is always welcome.

As I am not able to deliver these security guarantees and requirements which exceeds even visiting minister dignitaries, regrettably the invitation has to be rescinded.

I am sure the harshness was misinterpreted for the same passion you have about the topic

We can continue to exchange points and opinions on the forum.

[Scott]

It's probably best anyway. Thaivisa isn't a dating site.

I think we should stick to this topic.

[Publicus]

New IOS7 is playing games with the keyboard...

Have a look at the variety of street food for under $1 and this is in Xiamen, an affluent coastal city.

This in my books means having the choice of filling food in comparison to the $1 menu items in McD much as I love McD.

While I was living and working in the CCP-PRC some folk from Chaoshan took me to a Chaoshan traditional "cuisine" restaurant in Guangzhou where I got served up with boiled bamboo.

Very cheap.

Pulp.

As much as I dislike Mickey D's, I'd cheerfully go there first. At least McDonald's revises its menu from time to time. It presently is completely overhauling its menu, to include getting rid of the $1 "meal," which was a big time loser.

Traditional Asian food is, well, traditional. Which means it's sacred. It never changes, never improves - no one would ever think of such an inconceivable as changing their precious traditional food (in this instance, pulp).

The PRChinese - and I - much prefer KFC anyway which has an actually exciting menu in the PRC.

That is, unless you live on US $2 to $5 a day. In which case there's a lot of boiled bamboo around.

[boomerangutang]

China's contribution to world cuisine: snake head soup and MSG.

[LawrenceChee]

China's contribution to world cuisine: snake head soup and MSG.

Actually the Japanese invented MSG just like cup noodles

You need to head to a dim sum restaurant ...it's pure heaven when combined with good tea.

[Publicus]

China's contribution to world cuisine: snake head soup and MSG.

Actually the Japanese invented MSG just like cup noodles

You need to head to a dim sum restaurant ...it's pure heaven when combined with good tea.

Ha ha that's sum pretty dim food.

The PRChinese are much the same as the Thais when it comes to their foods and teas, i.,e., entirely presumptuous: "Try it, you'll like it. It's delicious."

Boiled bamboo?! Spicy hard boiled eggs?!

Both the Thais and the Chinese are certain in the absolute one can only adore their foods. There's a complete absence of the consideration of individual or cultural tastes, respectively.

Inconsiderate is a word that covers a lot of things in these parts.

I could also say what to do with that shark fin.

I edit because I have to say something positive, even if it might run the risk of incapacitating some certain people.

The Canton (Guangzhou City) tradition of a 9 pm snack provides a lot of really delicious foods. I always had the danger of turning the snack event into a huge feeding, going back again and again for more of numerous scrumptious delectables.

And I quite like the Thai dish, the name of which no one can think of at the moment, which has some special noodles in a (somewhat) spicy sauce. I could eat that stuff all day.

So there.

[Scott]

I have to agree with LawrenceChee about a dim sum. It's pretty tasty and there is quite a variety, but the topic is a little broader than that.

Let's stick to the broader topic.

[LawrenceChee]

It's interesting to see the shift in the import of technology as china ramps up is next phase of improving its domestic consumption instead of relying only on an export based economy.

After a detailed study in the late 90s of Singapore which relied solely on imports for most of is food source, there was several countries earmarked for technology and food transfer and with Xi in place as president for the next 10 years, this has taken a new direction as many of the white papers are approved and moved into action.

An example would be the diary industry which has suffered numerous downs in terms of quality and production know how.

New Zealand was shortlisted as a country that had the best technology and reputation in the white paper and Fonterra in spite of the recent scare has the full support of the CCP to open up to 30 farms by 2020. They already have 5 and in the first 6 months this year, china has imported 371,000 tons of milk from NZ alone and accounting for 83% of imports.

Of course the latest business purchase of USA company Smithfields will also enhance the meat supply for the growing middle class there.

As you review the economic models, this strategy will pay off for china on the long run as they establish different food sources and continue to improve their own domestic consumption.

[Publicus]

It's interesting to see the shift in the import of technology as china ramps up is next phase of improving its domestic consumption instead of relying only on an export based economy.

After a detailed study in the late 90s of Singapore which relied solely on imports for most of is food source, there was several countries earmarked for technology and food transfer and with Xi in place as president for the next 10 years, this has taken a new direction as many of the white papers are approved and moved into action.

An example would be the diary industry which has suffered numerous downs in terms of quality and production know how.

New Zealand was shortlisted as a country that had the best technology and reputation in the white paper and Fonterra in spite of the recent scare has the full support of the CCP to open up to 30 farms by 2020. They already have 5 and in the first 6 months this year, china has imported 371,000 tons of milk from NZ alone and accounting for 83% of imports.

Of course the latest business purchase of USA company Smithfields will also enhance the meat supply for the growing middle class there.

As you review the economic models, this strategy will pay off for china on the long run as they establish different food sources and continue to improve their own domestic consumption.

Fairy tales will amuse the sheeple of the CCP-PRC but not global investors or anyone who knows that the Chinese economy and financial system will crash before too much longer as huge bubbles will burst in real estate and in housing properties, in banking and finance, and local government finances rupture due to a staggering volume of bad investments based in the shadow banking system which provides underground funding of an unknown amount of unaccountable finance and investment funds in the CCP-PRC.

It was discovered earlier this year that 1 trillion RMB disappeared from the CCP-PRC economy - no one knows where it is, where it went, when, or how to find or recover it. The whole system is a disastrous mess which is impossible to straighten out due to bureaucracy, corruption, outright and undetected, unpunished thievery.

Yes new technologies are needed to promote a shift to a more consumer oriented economy but the new technologies are barely forthcoming as foreign capital has been fleeing the PRC during the past two years and in recent months especially. FDI continues to plunge. Domestic consumption continues to fall precipitously as a contributor to GDP, by as much as 20% during this year - and at its best it hadn't been that much to begin with..

Beijing can invest all it wants to in resources abroad, but when the economy and financial system at home is falling apart, and domestic consumption is in the tank, talking about the next ten years out is nothing more than a cute bedtime story.

So do us and yourself a favor and put it to bed.

[LawrenceChee]

The following companies today announced deals they believe is strategic to their interests and growth as domestic consumption tanks in the matured markets of the west.

Microsoft has announced a deal with BesTv biggest iptv company in the world to create a new venture that will allow Microsoft to tap into the gaming business @ the new created shanghai free trade zone. This will make Microsoft ahead of Nintendo and Sony for the lucrative online gaming business

Cargill has also announced a deal to expand into their biggest oversea venture in china for poultry feed.

CCP has also announced that they are taking tender bids for Internet services for the new shanghai free trade zone. This will provide for the foreigners living and working there access to Facebook, Google , Twitter and NY times.

As I said on the forum, they are making the right strides in the correct direction. Shanghai, HK, Tianjin continue to be the zones for these economic reforms experiments and the moderates applaud it.

[Publicus]

The following companies today announced deals they believe is strategic to their interests and growth as domestic consumption tanks in the matured markets of the west.

Microsoft has announced a deal with BesTv biggest iptv company in the world to create a new venture that will allow Microsoft to tap into the gaming business @ the new created shanghai free trade zone. This will make Microsoft ahead of Nintendo and Sony for the lucrative online gaming business

Cargill has also announced a deal to expand into their biggest oversea venture in china for poultry feed.

CCP has also announced that they are taking tender bids for Internet services for the new shanghai free trade zone. This will provide for the foreigners living and working there access to Facebook, Google , Twitter and NY times.

As I said on the forum, they are making the right strides in the correct direction. Shanghai, HK, Tianjin continue to be the zones for these economic reforms experiments and the moderates applaud it.

You're focused on only the one district in Shanghai, the Pudong District, as a free trade zone that is more hype than reality, as the CCP tries to take desperate measures to keep foreign firms and expertise in China and hopefully, by some miracle, try to attract new ones.

The internet cafes in Pudong will not have available Facebook, Google, the NYT. Life in the CCP-PRC for a Western foreigner is restricted and restrictive, as global cable satellite tv such as the True system in Thailand is prohibited by the CCP - any such system. So now the CCP is trying to make nice by allowing some small smattering of global IT to be available to foreign devils.

The CCP is trying to stem the outflow of foreigners, foreign capital, the sharp reduction of FDI and so much else with this hyped up project.

The reality is that a few of the CCP's choice chicken farmers will make out pretty well. That's about it.

[LawrenceChee]

FDI has increased in China and attracted $62 billion dollars in the first half of the year. Not small change by at means.

http://mobile.reuters.com/article/idUSBRE97M04J20130823?irpc=932

http://www.nytimes.com/2013/07/18/business/global/strong-growth-in-foreign-investment-in-china.html?_r=0

[Publicus]

FDI has increased in China and attracted $62 billion dollars in the first half of the year. Not small change by at means.

http://mobile.reuters.com/article/idUSBRE97M04J20130823?irpc=932

http://www.nytimes.com/2013/07/18/business/global/strong-growth-in-foreign-investment-in-china.html?_r=0

Let's look at the true data, not the CCP's usual and regular faked figures and cooked books.

FDI is in a full year decline in the CCP-PRC in 2013. FDI in the CCP-PRC peaked in 2008 and has been going only downhill since. There occasionally has been a better month or a better quarter, but the overall trend is in fact a downward spiral.

Beijing said the economy expanded last quarter but the China Beige Book in New York saw data that said the opposite. This incongruity is consistent and persistent from Beijing over the past decade of growth and development.

In a further instance of "fraudulent" data, last month Christopher Balding, an economics professor at HSBC School of Business in Shenzhen found that the CCP in Beijing has overstated their GDP by USD $1 trillion by cooking data, falsifying data, jiggling data. Prof Balding's findings show that,

China’s Gross Domestic Product (GDP) is more than $1 trillion less than published because baseline Chinese economic data on housing is manipulated and unreliable, says Christopher Balding, a professor at China’s HSBC School of Business in Shenzhen.

Using data on consumer price inflation published by the National Bureau of Statistics China (NBSC) data, Balding came to his conclusion while attempting to reconcile the official data to third party data.

The primary point of the paper is not simply to reveal more discrepancies in the Chinese economic data, which it does, but also to measure the impact of these fraudulent statistics on real economic activity, Balding said on his website, Balding’s World.

When you simply make economic data up, of course the numbers are always going to look good, he remarked.

Balding shows how the official statistics assign manipulated housing data to reflect a lower rate of inflation. After conservatively correcting the official Chinese Consumer Price Index data for actual housing price inflation, consumer price inflation in China has been approximately 1 percent higher annually, he reported.

Incorporating this change in the Consumer Price Index into real GDP calculations reduces total actual GDP by a mid-range estimate of 8-12 percent or about $1 trillion in purchasing power parity (PPP) terms. This means, in simple terms, peoples’ money does not buy as much because of the hidden inflation.

China FDI Shows Full-Year Decline as Economic Expansion Slows

China’s improving economic growth is unconvincing to Jim Chanos, the founder of Kynikos Associates Ltd., who is maintaining bearish bets on the nation’s banks.

“My caution is related to the credit-driven model,” Chanos, who predicted the collapse of Enron Corp. in 2001, said on a panel moderated by Tom Keene at the Bloomberg Markets 50 Summit in New York. “If you grow new credit by 30 percent to 40 percent” of gross domestic product a year, it’s not difficult to reach the government’s expansion target, he said.

Growth in China’s retail sales and industrial output accelerated in August as the broadest measure of new credit almost doubled, a sign Premier Li Keqiang is committed to meeting economic goals even at the cost of increasing risk in the financial system. A private survey from New York-based China Beige Book International showed the economy decelerated this quarter, contrasting with official data showing a pickup.

http://www.bloomberg.com/news/2013-01-16/china-fdi-shows-full-year-decline-as-economic-expansion-slows.html

[LawrenceChee]

The measurement of true press freedom is that points and opinions will not always be the same.

Reuters, Bloomberg and NY times are all reputable periodicals that may get it wrong at times and remembering articles are written with a writer viewpoint and his / her opinions and research.

I am not an economist but on the ground where I am involved in hotel projects, the REVPAR measurements of hotels in china is astounding and surpasses every other market they have invested in.

Every major hotel chain has now dedicated resources specific to the growth of their china markets and appointed some of their brightest folks in these projects.

Having worked with the regional financial professionals in Marriott, Hilton, Hyatt, IHG ...their optimism and calculations is rarely wrong. After all focusing on the property business is their speciality. And the buildings here are landmarks and rally beautifully designed.

And looking at the compiled tourist dollar spending just released where the Chinese is now the heaviest tourist spenders in the world ...they spent $102 billion worldwide with $8.8 billion in USA alone with only 1.5 million Chinese visiting ...that's some serious spending and a boost for the retail and hotels in USA.

Many service sectors need this spending and their travels have revived many hotel business in weak or matured market segments.

The Greek government is moving in with CTS to highlight special sights for the Greek itinerary ...if they are successful in getting the certificate to sell, these Chinese tourists would have rescued an economy that is mired in debts and sorely lacking in tourist spendings.

On the ground ...I cannot see the doom and gloom some are predicting. The Chinese race has always saved for a rainy day and spend within their means for the majority.

If you have a shanghai girlfriend before or now ...hehehe I can understand if anyone is saying it's an outflow of FDI