China isn’t doing this to become Communist again, but to prevent a large exodus of factory machiny to southeast Asia, India, and Africa.
It can feed itself for the most part, (it’s that small part that it is worries about, still must import some food) and can keep large sectors of it’s population on idle for quite some time given it’s frozen meat reserves.
Right now it’s banking system is out of liquidity… an example, a few years back, it was buying up banks in Africa… the British are trying to dump Banksey now… Chinese won’t even touch it. Nothing wrong with these banks per say as far as African standards are considered, just poor performing by western standards. I fully expected the Chinese to come rolling in, they didn’t last I checked.
Some good news, is Europe is rapidly impoverishing itself, selling more on the international markets it’s quality products, but importing Chinese crap on levels they never have before, so China can thank the vision of Angela Merkel. China has recently completed a railroad going from China to Iran, and has oil locked in long term… sanctions or not, it now has increasingly secured oil, and can trade it for trinkets.
A approach like this likely won’t end up in blantant nationalizations rather than forced mergers of companies, so they can be as comoatible as possible, streamlines, and sell off internally to other trouble companies its other assets, without foreigners snatching up everything in the beginning… unless of coyrse you already have a foreign owned factory in china, in which case… buy up as much as you want.
Youll see alot of companies like Apple eye this… youll see a lot of rapid expansion in 8 months to 2 years from now, as factories are cannabalized.
This isnt goung to resukt in as bad as a contraction as you would think.
Say I have 1000 comoanies, but can only realustically have 300. That sounds absyrd, right?
You merge each one to another, as soundly as possible to get the wisest possible mix of strong companies that can make max use of one anothers assets and employees…
Thats 500 companies, with 40-60% layoffs, but not legitimate liqidity… scrap metal, abilutt to further sell what they dont need, picking the best employees between the two…
The alternative is 700 companies, perhaps 900 in the aftermath of the investor shock, go under. All the employees lost, whatever their skill set. It all sits idle, factory rooftops decay, former employees strip the factories if any recycleable assets to feed their family… foreigners rush in, buy what they can and ship it overseas, so once china dies dig out of the bubble, it has similarly parred competition the world over.
It can also to a much higher degree fund its own economy with its own population than before with its stock exchange, its a very useful analytic tool for the state to look at whwn doing this… stocks arent lost in mergers. They will shoot down or up based on how trusting investors are in these remaining 500 compsnies, China may very well climb up from the 300 line to 350 or 400 comosnies it can healthily support.
China has fishfarms everywhere, absurd amounts of frozen food underground, the state owns all the land in china (all of it) so it can drop rent to badly hit communities, or encoyrage migration elsewhere.
Its gonna largely survive.
And why on earth was the article in the first pist deleted? All you gotta do is properly source it and link it, courts dont prosecute on the basis of loss of hypothetical internet revenue that it cant measure. You protect everyone elses copyright carleas but ours. Fucking amazing.
