China’s Economic & Business Bi-Polar Problem: Globalizing & Imploding

China is trying hard at benefiting, even more than it had, from globalization, to off-set, a slowing internal economy, pinning its hope, that a more connected with the globe China, will increase, overall, prospects. Internally, China’s stock market had tanked, & the only reason not collapsed, is manipulation and subsidy of the stock market. And economy overall is slowing. Labor strikes in China is at historic high & wages increasing rapidly. Innovation, creativity and entrepreneurship, have taken a back side to copying & reverse engineering. A plan shift to service, away from real sector, is stalling. Rich and poor gap & pollution, adds to the problems. Even a three reduction in interest rates, failed to prop up the stock market or the economy. And a bubble is everywhere with over-capacity, i.e. real estate.

China is a repressive & oppressive country internally, and an aggressive country externally, such as can be seen in the crack-down on lawyers & dissidents & Pacific Waters, from the Sea of Japan to South China Sea, with, i.e. island building for naval and air base in South China Sea & oil rig placement around the Sea of Japan.

The country is governed by the Communist Party, but in fact, the government is a “Junta” as can be seen by Xi getting rid of his enemies, people who does not support his vision. Again, China, has been eyeing to expand its influence globally, including Caribbean, Latin America & the Amazon area. But anywhere China go, China takes with it, the repressive, oppressive and aggressive nature.

What happens when a country is going global, at a time, the country is trying to stop an internal imploding?

(Up-Dated 1) It is August, and Ye Xie at Bloomberg  has a report (see here) saying in the introduction: “Just 14 years ago Wall Street fell in love with the BRICs, the tidy acronym for four major emerging economies that, to many, looked like sure winners. Today, after heady runs and abrupt reversals, most of the BRICs — in fact, mostdeveloping nations — look like big-time losers.”

(Up-Dated 2) China has devalue its currency, through a regime of flexible currency control method, raising a great deal of question about market force vs state control, with IMF saying the move is positive for capital account liberalization and Standard and Poor saying the move is credit positive. China’s stock market regulator then said, the stock market will be allowed more market force (China’s stock market is currently being manipulated, through, i.e. subsidy.)

However, critics, question, the move, on extent of liberalization with market force citing, the importance, the level both the stock market and currency liberalization can impact China’s internal economy & how China’s overall, continues to be mostly a centrally planned economy.

Globally, most political/economic interlink pundit, says the devaluation of China’s currency, is a crack in the face to China’s attempt to maintain an image of economic invincibility & skill of China’s planners to guide the economy through crisis, with even, the likes of Bloomberg and other money news, questioning the sustainability and strength of China’s economy.

(Up-Date 3) For quite a while now, doubts have been expressed, over China’s lead New Silk Road (see here) especially now, with US and Iran nuclear deal (pending Congress approval) changing global economic strategy & situation.

(Up-Date 4) Washington Post has the following report (see here) out of PHNOM PENH, Cambodia: “Faced with slower growth at home and rising labor costs, Chinese entrepreneurs are seeking foreign markets as never before. But as they rush abroad, they are grappling for the first time with unruly trade unions, independent courts and meddlesome journalists. And for many, navigating the unfamiliar waters of multiparty politics and confronting the power of public opinion makes for heavy going.”

(Up-Date 5) Zero Hedge has a report (see here) head-lined: China’s Debt Load To Hit 250% Of GDP In 5 Years, IMF Says” and reported “Anyone who follows China knows that the country faces a particularly vexing problem when it comes to debt. The way we explain it is simple: Beijing is attempting to deleverage and re-leverage simultaneously. Needless to say, this isn’t possible, but that hasn’t stopped China from trying, as is clear from the multitude of contradictory policies and directives that have emanated from Beijing over the course of the last nine months.”

(Up-Date 6) Wall Street Journal has a report (see here) head-lined: “China Fires the First Shot in a Currency War” and reports: “In recent years, Japan, the U.S. and Europe have been accused of fomenting currency war by employing monetary stimulus that drove down their currencies. These accusations were off base: by boosting domestic spending with easier monetary policy, everyone, including their trading partners, benefited. But China’s move this week to devalue the yuan is an exception. Because its action was not part of a broader monetary boost, the effect will be to siphon demand from its trading partners while giving nothing in return. It is a zero-sum game and thus the first shot in a currency war.”

(Up-Dated 7) China August Forex Reserves Down by $93.9 Billion as PBOC Intervenes (source). PBOC has been selling its dollar holdings to prevent the yuan from sliding further. China’s foreign-exchange reserves fell to $3.56 trillion at the end of August, as the nation’s central bank intervened in the currency market.

(Up-Dated 8) Chinese Companies Face Premium to Resume Selling Dollar Debt (source): After issuance ground to a halt for nearly a month, Chinese U.S.-dollar bonds are starting to flow again. Improving market sentiment has Chinese banks and companies restarting their offshore-debt engines—but given the economy’s struggles to revive, this comes at a price. Chinese U.S.-dollar bonds dominate Asia’s $874 billion bond market.

Lets look closer at China’s globalization:

Is China’s move into the Caribbean, Latin America & the Amazon area a positive event?

The following are some articles, that points to the move, as being “Negative Events.” So how can China rely on negative events for the local people, to help China grow and prosper, taking up slack, from a slow-down internally? Additionally, there have been many analysis, such as at Oilprice.com, pointing China’s New Silk Road, as being risky, too small an ambition and will help China little.

China Buys Inroads in the Caribbean, Catching U.S. Notice http://www.nytimes.com/2012/04/08/world/americas/us-alert-as-chinas-cash-buys-inroads-in-caribbean.html

Nicaragua Canal: China’s Strategic Presence in Central America

http://thediplomat.com/2015/06/nicaragua-canal-chinas-strategic-presence-in-central-america/

Thousands in Nicaragua protest Chinese canal plan

http://phys.org/news/2015-06-thousands-nicaragua-protest-chinese-canal.html

China: Don’t Drill the Amazon!

http://amazonwatch.org/take-action/china-dont-drill-the-amazon

China’s Amazonian railway ‘threatens uncontacted tribes’ and the rainforest

http://www.theguardian.com/world/2015/may/16/amazon-china-railway-plan

I twitter the following series, a few back:

1) Yesterday, 57 countries, mostly, Europe & Asia, held signing ceremony to set up China-led infrastructure bank (AIIB)

2) Today, I twitter posted, about 30 photo-journalism & articles, on China’s “Tyrant Junta” internal oppression & external aggression,

3) & on China’s “Tyrant Junta” destructive economic development model, such as exposed by a book on Tibet Highland & Deltas of Asia

4) & in that twitter posting of about 30 photo-journalism & articles, there were many on China’s “Tyrant Junta” plans for the Americas

5) As the photo-journalism & articles show, there are massive opposition to China’s “Tyrant Junta” plans for many parts of the Americas

6) that massive opposition to China’s “Tyrant Junta” plans for many parts of the Americas focus on “Infrastructure Development”

7) considering, from 1/28 to 6/28, China-led infrastructure bank (AIIB) should be a cause of “Great Concern & Worry Globally”

8) But worse, UK Royalty, lead much of the West, into accepting China’s tyrant junta “Destructive Economic Model”

9) & it should be noted, that Russia, only joined China-led infrastructure bank (AIIB), right after, UK did

10) & it should be noted, US, went to the extent, to object to the UK, on the China “Tyrant Junta” led infrastructure bank (AIIB)

11) Last week, Caribbean News Now (@caribnewsnow) had a very important article > warning the people of the Americas of China

12) The article by Caribbean News Now (@caribnewsnow) was with the headline, that basically says:

13) “People should not be excited about China’s money, but look at China’s history & track-record”

14) Interesting that a small, internet news agency, Caribbean News Now (@caribnewsnow) has more sense than UK, Europe & Australia

15) & UK, Europe & Australia should know, that China’s economy is slowing, on several fundamental reality & China needs

16) to step-up, resource (including human resource) exploitation, globally, to keep its economic system from imploding

17) with that, given China history & track-record on > geo economic, geo political & geo national security = UK & Europe, Australia

18) have no excuse to > i.e. join China’s “Tyrant Junta” led infrastructure bank (AIIB)

19) Additionally, for UK, Europe & Australia, China “Tyrant Junta” has “Veto Power” over the infrastructure bank (AIIB)

20) Is UK, Europe & Australia so desperate for China’s “Tyrant Junta” money, to accept, being “Under” a junta’s “Veto Power”

21) A question to Germany’s leader, Angela Merkel (@dw_germany) how deeper will Germany take Europe into dystopia?

22) A question to UK’s leader, David Cameroon (@foreignoffice) how deeper will your party take UK into dystopia?

23) A question to Australia’s leader,Tony Abbott (@TonyAbbottMHR) how deeper will your party take Australia into dystopia?

24) & I want to pose a question, to a guy I like a lot, Putin (@PutinRF_Eng) leading a country I love very much, Russia

25) To Putin (@PutinRF_Eng): “U may be OK with riding China’s “Tyrant Junta” coat-tail, but I ride no-one’s coat-tail”

26) To Putin (@PutinRF_Eng): “Are u sure about leaving a big part of Russia’s future, hanging on/with China’s “Tyrant Junta?”

27) Lastly, my congratulation to Obama (@POTUS) national security backers, to see the danger of China’s “Tyrant Junta” led bank (AIIB) & called on other Western countries, to reject joining the bank.

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