I believe it is the environment (mood of the market masters) rather than any underlying fundamental change which makes changes in investments in our modern world. From offshoring Energy to ESG. Similarly I believe in China's case that the environment would eventually change when some of these master's incentives would align with China.
Wow. It is clear that you have not lived in China for an extensive period and you have not been exposed much to first-hand experience. I have. This piece comes out as extremely naive and out of touch. Instead of claiming China is misunderstood I think you are rather misunderstood. Let's discuss some facts:
1. State-owned enterprise
Chinese SOEs are at different scale and much far-reaching. 4 out top 10 global fortune 500 companies are Chinese SOEs: State Grid(3), China National Petroleum(4), Sinopec Group(5), China State Construction Engineering(9). SOEs squeeze out private sector, there are enormous amount of rent-seeking, corruption, business deals under the table. Many young people yearning to get into SOEs or be public servants for job security, wealth & political clout.
The country has firm control in the most lucrative businesses, eg. Kweichow Moutai & China Tobacco. Kweichow Moutai is a 168-bagger over 20 years with impeccable financial metrics. China Tobacco's pretax income is over ¥1 Trillion. While the government cracked down hard on vape for health concern China Tobacco is perfectly unharmed.
2. Regulation impeding innovation
EU legislated against connector port but do you realize China regulated/fined the following industries over last 2 years: e-commerce/crypto/online food ordering/ride-hailing/gaming/for-profit tutoring/streaming/vaping?
Not to mention the obvious & notorious Covid Zero strategy... for almost 3 years. Retail grind to a halt. Tourism nonexistent. There are university students who don't attend classes in person in 3 years. That is probably very bad for innovation.
Nice Post!
I believe it is the environment (mood of the market masters) rather than any underlying fundamental change which makes changes in investments in our modern world. From offshoring Energy to ESG. Similarly I believe in China's case that the environment would eventually change when some of these master's incentives would align with China.
u bring up some valid points! but i guess, the simple question to ask, where do you want to live? and where do people in general want to live/move?
Wow. It is clear that you have not lived in China for an extensive period and you have not been exposed much to first-hand experience. I have. This piece comes out as extremely naive and out of touch. Instead of claiming China is misunderstood I think you are rather misunderstood. Let's discuss some facts:
1. State-owned enterprise
Chinese SOEs are at different scale and much far-reaching. 4 out top 10 global fortune 500 companies are Chinese SOEs: State Grid(3), China National Petroleum(4), Sinopec Group(5), China State Construction Engineering(9). SOEs squeeze out private sector, there are enormous amount of rent-seeking, corruption, business deals under the table. Many young people yearning to get into SOEs or be public servants for job security, wealth & political clout.
The country has firm control in the most lucrative businesses, eg. Kweichow Moutai & China Tobacco. Kweichow Moutai is a 168-bagger over 20 years with impeccable financial metrics. China Tobacco's pretax income is over ¥1 Trillion. While the government cracked down hard on vape for health concern China Tobacco is perfectly unharmed.
2. Regulation impeding innovation
EU legislated against connector port but do you realize China regulated/fined the following industries over last 2 years: e-commerce/crypto/online food ordering/ride-hailing/gaming/for-profit tutoring/streaming/vaping?
Not to mention the obvious & notorious Covid Zero strategy... for almost 3 years. Retail grind to a halt. Tourism nonexistent. There are university students who don't attend classes in person in 3 years. That is probably very bad for innovation.
Monopolies are products of governments. Show me a monopoly that persists without some intervention somewhere. We haven’t had a free market in ages.
Hong Kong was a demonstration. You are unaware.
Great post!
Apart from that "Germany owns 100% of the train company and some banks" is factually wrong.