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To: Red6
What domestically is growing their economy even in those areas that are internally consumed, foreign investments from firms like Boeing, GM, Cisco, IBM, McDonalds....

Foreign Direct Investments. FDI for short. Correct. This is the primary source of their "growth".

China’s economy is like S. Korea, Germany (post war), Japan (post war); an economy that bets on exports to grow industrially.

That is the primary basis for their attraction to the FDI. They set up their factories to ship back to the West...so they can realize the labor and regulatory cost savings.

To the extent they actually induce the FDI sources to shut down indigenous Western production...and weaken their industrial infrastructure with reverse economies of scale...so much the better for the Communist master planners.

Their domestic consumer does not have the “money” to buy a Lenovo laptop; he does not have the money to buy the products produced there.

Agreed. The "Party" is the basis for a vast amount of the consumption being asserted. They issue the cell phones and computers and apartments...and pay for the schooling, and broad-band connections etc. But none of that is gratis. The Party expects loyalty...and service.

31 posted on 01/03/2008 3:12:13 PM PST by Paul Ross (Ronald Reagan-1987:"We are always willing to be trade partners but never trade patsies.")
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To: Paul Ross

Primary source of China’s FDI comes from Hong Kong and East Asia, not the West as you seem to imply.


32 posted on 01/03/2008 4:35:00 PM PST by charles m
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