Friday, July 14, 2023

Invest in what?

"China's financial regulators have invited some of the world's biggest investors to a rare symposium next week, three sources said, seeking to encourage foreigners to keep investing in the world's second-largest economy despite its recent weakness and rising geopolitical tensions." Reuters. "The country's post-pandemic recovery is quickly losing steam and Sino-US relations are at a low over national security issues - including Taiwan, US export bans on advanced technologies and China's state-led industrial policies." Showing how weak the economy is, "China's producer prices fell at their fastest pace in over seven years in June, while consumer prices teetered on the edge of deflation, adding to the case for policymakers to use more stimulus to revive sluggish demand." Reuters. But, stimulus for what? "China is awash with 'ghost cities' where apartment blocks stand abandoned or mothballed with some 65 million empty homes." The US Sun. "Rows of post-apocalyptic housing estates tower over visitors, and impressive attractions and shopping malls gather dust without any residents or tourists stepping foot inside." For some strange reason the Chinese government seems to think that it can entice foreign investors with the lure of profits while, at the same time, trying to subjugate their nations by spying on them and hacking into sensitive information. "China-based hackers have breached email accounts at two-dozen organizations, including some United States government agencies, in an apparent spying campaign aimed at acquiring sensitive information, according to statements from Microsoft and the White House." CNN. In the UK, "The House of Commons Intellingence and Security Committee (ISC) said in a wide-ranging report...that the intelligence threat posed by China is compounded by a 'whole-of-state' approach with the use of state and non-state actors used for spying." India Today. In addition to spying, China physically threatens its neighbors. Not content with the cowardly murder of 20 unsuspecting Indian soldiers at Galwan in Ladakh in June 2020, BBC, "China is rushing to complete a bridge across the Pangong Tso, connecting the north and south banks, India is fortifying a black-topped road on its side on the north bank." FE. Also, "China's air force and navy staged a second day of large-scale exercises with fighter jets, bombers and warships to Taiwan's south and southwest on Wednesday (12 July), the island's defence ministry said, as Beijing keeps up its military pressure." Reuters. You cannot threaten the world without retaliation. China's young people are feeling the pressure. "Last year, about 6.8 million couples registered for marriage, the lowest since records began in 1986, down from 13.5 million in 2013, according to government data released last month." NDTV. No marriage means no children. "In 2022, China had one of the world's lowest fertility rates at 1.2 births per woman." BT. No one trusts a hostile nation. Not even its own citizens. So, why invite investors?

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