Business group: China tech plan threat to foreign firms


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Quote: What does the awareness of Chinese political supraplanning mean for instance for the Western businessman? It means many things. Here, only one aspect can be mentioned. It is the long-time horizon of the plans of the CCP. The planning horizon runs until 2021 and 2049. In this long time period, the PRC will need foreign business contacts, otherwise it cannot overcome the backwardness characterizing the ‘more than 100 years’ of the ‘primary stage of socialism’. This generates a high degree of planning security for Western business. On the other hand, Westerners should not overlook the second aspect of ‘supraplanning’ and should get well acquainted with the Chinese art of cunning. Without this knowledge, they cannot match the supraplanning of their Chinese business partners.

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So the west thought they could just use Chinas cheap labour to produce high tech stuff and keep China on the bottom of the pecking order even when they had accrued a monopoly of tech engineering plants. Bl.ew up in their face I'd say

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Tesla's patents are apparently available.

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I think the day will come when the Western world abandons all hope of getting equal treatment from China. The sooner that realisation occurs the better. What is needed is a global Western trade treaty, which includes the U.S, Europe, the U.K, Canada, Australia and New Zealand in which tariffs and other trade barriers are reduced as close to zero as possible. Brexit discussions are an opportunity. The planned discussions post Brexit between the U.K, Australia, New Zealand on trade treaties could also be a catalyst. I'd imagine tariffs are other impediments to trade are already fairly minimal, but the tighter the bond between Western countries in terms of trade, the better. Not talking about an E.U project here, just trade. In order to drive growth. India should be offered favoured nation status and exemptions from the principles and tariffs that would otherwise apply to countries outside of the bloc. The status should be based on a willingness of India to open up and provide the West with more favourable access to its consumer market than China receives now or into the future. Mutually beneficial defence discussions could also be part of the negotiations

Eventually other countries may join that are not strictly Western, based on their overall positive relationship with member countries and their level of development. Japan is an obvious one for example. Both India and Japan have about as much hope of getting a good deal from China as the West does. None.

Protectionism should be the order of the day for all countries outside of the treaty. A sliding scale based on the new blocs relationship with individual countries, their adherance to WTO rules and the blocs requirements would determine tariff levels. Developing countries with a generally positive relationship, like Vietnam for example, would enjoy fairly good terms, others like China, might be on a 40% tariff.

Should also come back to the idea of free movement for skilled people. There are already solid discussions underway for free movement among the U.K, Canada, Australia and New Zealand. It should be limited to citizens of member countries (not permanent residents or temporary residents, not those on visas) or dual nationals with nationalities split among members of the bloc.

The West needs to put the internal bickering behind and realise that there is a much larger game at play here. If we do nothing, then all high end manufacturing will eventually be lost to China and virtually nothing gained. We could be looking at a time when Airbus and Boeing are gone, only to be replaced by Chinese exports. That would be truly ludicrous outcome. All we will be left with is commodities and products that China can't get from anyone else, which is extremely limited.

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