Analysis: Why do Chinese manufacturers dominate in so many sectors?
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- Опубліковано 30 кві 2024
- China is providing nine times as much state aid for their manufacturers as developed economies in the OECD, who are lagging behind when it comes to spending on green tech and manufacturing.
The data is a critical part of the explanation for Chinese dominance in certain fields, and part of the explanation for why the UK has seen its manufacturing base shrink so rapidly in recent years.
Read more: news.sky.com/topic/china-5869
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The US and the west unfairly dorminated the world economies and no one complained.
Mind your business
Absolutely
When state subsidized Chinese comanies crush competitors with artificially low prices, and raise price when no competiotors left, it's your business too...
@@123_1 tell your govt to subsidise too.
I thought they subsidise all those companies by the wars they wage world over.
Mind your business.
@@123_1 am sure even slavary was subsidised by the western govts
At least China competes without resorting to colonisation, slavery and looting other nations through invasion
This analysis shows that one should mind their own business without poking other people’s affairs.
No, this analysis shows how some players are not playing according to rules.. They mind their own business, right... but then they should be kicked off our markets!
As per my experience of what happened in the world so far, there were no rules for west. Only when ASIA started to develop, the “rules “ started to appear.
@@mewanrocksWorld Trade Organization regulates government subsidies
@mewanrocks . The "rules " were created by one side. When the other side, using these "rules" beat them in their game the first side cry foul. This is the western "rules based order ".
Maybe the rules were created by the West, but China accepted that rules. China accepted that rules but violates them...
Doesn’t that mean Chinese government is more smarter than other governments?
No, they are dependent on our markets... When all country do the same: subsidizing their own industry by tax payers money, to sell their products in other countries... where will they sell all these goods? Tax payers will not have engough money anymore... nowhere... It is a destructive competition...
@@123_1 Hey, I don't hear Chinese people complaining. Also if Biden decides to subsidize Chinese people purchase with their government money, we Chinese have no problem with that. Why the hell haven't started doing that?
@@123_1 nah chinese government far better and more qualified than anywhere in the world
@@123_1That's called Capitalism and its highly encouraged by the West but it's not encouraged when someone beat their a**😂.
Yeah, at least their state (government) are doing the right good things, in this context
In other words, what they are trying to say that China is so dominant because of aid from the state. If it is that simple, every country could replicate that and nullify China's dominance. Sour grapes in my opinion.
The British Empire began to discuss “fairness”
well said !
there is no physical british empire anymore but there is a mental one in some people's head
@@leejo5160 Try the G7.
Or maybe thatcher sold of our country. Cope 😂😂😂
@@Toodyslexicforyou And Boris Johnson shoveled the last shovelful of dirt over it !
British still thinks it can dominate on the global stage is cute
She still can if she started working on it instead of crying about it. 😭😭😭😭😭
What's wrong with that😂
China produces cheap n reliable goods for all people can afford to buy n enjoy
...and reliable propagandist trolls
Truth hurt 80% of world population can’t afford to buy products from western countries 😂😂😂
@@123_1yeah, the truths hurts. Go on, enjoy your cup of tea and your nap
Is called focusing on your own country instead of looking for who to fight with
1) The Chinese government has a STRATEGY : development.
2) The Chinese government believes and invests in manufacturing.
Sounds like rest of the world like Mexico, India and etc. So are we boycotting third worlds now
The Chinese government is a DICTATORSHIP: No thanks
Sure. Cope hard, cope 😂
yes, they are all on foodbank and don't have health care. 🤩🙃@@johnmarkrobinson2924
@@arreydharma5784temu is how strong Chinese manufacturing products 😂
The main role of government is to help the country to prosper isn't it.
Why complain..
What about fighting proxy wars? Who is spending more?
What about giving tax payer’s money away to other countries when that money is needed here at home in the USA. We give billions to China then turn around and borrow it back with interest. Foreign aid is nothing more than theft by congress of US citizens so that the congressional members can get rich from the kickbacks. Hence, China is leading because the imperialist West, Including but not limited to the USA, is more corrupt.
If they make a chart in "wars involved", then that chart will very well look very much like that with US ahead of everyone else. Lol
Russia doesnt count, because it's normal war, not some proxy weak sh*t.
I thought they didn’t have a lot of money to support their industry. This means their government works more efficiently. All other governments are just wasting their taxpayer’s money.
Most other governments' taxpayers money are in the pockets of their beloved politicians. 🤑🤑🤑🤑
Nothing wrong with that. China helps Companies to Prosper. UK economy is sooo small.
UK gdp per capita is 10x that of china and is the 6th largest in the world.
@@noke258OMG 😱
@@noke258I don't know British GDP per Capita is 100k 😮 because China GDP per Capita now 13k
@@noke258 UK gdp per capita. Now comes the difference. Capita UK is 66 million. Capita China is 1400 million. Makes UK very Small. UK is 240.000 square km. China is 9.600.000 square km. Makes again UK very small.
@@noke258 Nah, the GDP per capita PPP that reflects real price is 3X
China has greater economies of scale and less regulation. They have all that cheap Russian energy we refused to buy.
of course, why would we buy it and fund the russian war against ukraine? jesus, think and breath at the same time please
Because its none of our business @@kierano8390
@@kierano8390So in order to support our own governments foreign policy, we destroy our own economy. What was that about thinking and breathing? Cutting off your nose to spite your face?
@@Dungshoveleux policy* and sorry i dont speak to russian bots
Translation: We produce a lot of unregulated crap that not even Chinese people want to buy (because they know its unsafe) and then the CCP tries to export it. We also get cheap Russian oil, but we don't have the infrastructure required to make any meaningful use of it - instead we have to rely on oversea imports and more coal factories than the rest of the world combined.
Dont see anything wrong.
Absolutely
Because the Chinese are smarter and they work harder 😂
Dude said “It’s not an even playing field”. Really!? Chinese Government working for its people whilst the USA Government working for the 1%. Everything is “For Profit”. FYI - the USA Government gives billions of Grants each year to Pharmaceutical Companies who then create medicines and then sell it at exorbitant prices. Capitalism gone mad. We need a correction.
Its simple.China is subsidizing companies ,west is subsidizing wars and proxy wars😂😂
Why not western govts do the same? Illuminate me pls. Thanks
They're trying - the Inflation Reduction Act for example - but Western political systems are inferior to the Chinese political system in some key aspects (definitely not all).
Is there a chart for weapon manufacturing?
In the US, IRA (Inflation Reduction Act) is giving away $2 trillion as subsidies
I bet it did not work 2 years after implementing such act
1. Industrial policy
2. Large no of stem grad
3. Economy of scale
This shows that power is not in military but your economy. The UK is bleeding money in military and defence instead of investing on it economy 🤦🏽♂️
And the scary thing is that the military and defence is struggling even after billions were dump on them.
It wouldn't surprise me one bit if China is posturing with Taiwan and South China Sea to slow drain the coffers of AUKUS. Proportionally, it's an incredible amount of money for AUKUS to spend on "Freedom of Navigation" missions so far away from home.
@@BatCountryAdventures oh wow that’s a great point. I didn’t look at it from that angle.
Hmm that could be true. If that so then it’s brilliant let the west waste their money on military whilst the Chinese go ahead and conquer the world without firing a single shot. They are playing Go whilst we in the west are playing chess.
@@BatCountryAdventures. The US has a ring of military bases facing China, from Korea/Japan to the north to the Philippines in the south. And now they are talking about war with China. China wants trade around the world. America wants war, all fueled by its MIC
why? because they worked their assoff, and they are smart.
Don't say that they're smarter 'cuz Uncle Sam doesn't like it so just say the Chinese are lucky. 😂😂😂😂
Today, the Western world should appreciate the Chinese government's consistent promotion of peace. With the Chinese government holding the largest industrial capacity in human history, once this capacity transforms into military strength, the West will witness unimaginable military figures, with all equipment counted in millions.
The government is not promoting any peace in the South China Sea where they illegally occupy large swaths of the ocean.
Chinese are smart and hard working people, they never leave the center of the world for thousands of years.
China and India dominated the world economy before the west started their intrusion into the two countries and destroyed their lives. Now that China has got back its own footing the west cry foul.
How about the Chips Act in the us?
Chinese government are always very strategic and are not dummies
1, their technologies have broke through, which make their products with reasonable quality. 2, they have cheaper label, cheaper materials, cheaper logistics, cheaper energy. it turns their cost much lower than their competitors. So, they dominate.
The grafics show that STATE AID IS MINIMAL IN CHINA. THE WEST KEEPS BORROWING RATES EXTREMELY LOW AND CHINA GIVES FACTORIES LOANS WITH REDUCED RATES (STIIL HIGHER AS IN THE WEST). So, the conclusion is that CHINESE PEOPLE are better fit for capitalism, working, socialism, as Westerners are egocentric and want to become rich in the easy way.
What about US dollar printing machines
No wars, cheap energy Europe refused, economy of scale, better infrastructure facilatates transportation etc
I don't think that government support is the most important factor. If it is, it will be easy for its competitors to copy. Besides where can the Chinese government got so much money to subsidise its industries?
By spending 3.5% of GDP on subsidies instead of wasting it on its military like the US does.
US had industry overcapacity and it led to 1929 Great Depression. To keep the industry capacity , US supplied Japan’s war machine during its invasion to China until Japan embargo all the imports into China including US supplies which stopped US supplying to Japan’s war machine and triggered pearl harbor attacks. Now, let’s see where Russian war machine goes with the unlimited supply from China.
China bisa semaju sekarang ini karena tidak ikut campur masalah negara lain, China fokus mengurusi diri nya sendiri, fokus mengembangkan potensi ekonomi dan teknologi nya, saya rasa negara barat harus belajar banyak dari kemajuan China saat ini.
Bukan. Tapi sistem pemerintah yang efisien yaitu hanya satu partai dengan otorisasi yg kuat untuk bekerja membangun negara. Barat menyebutnya otoriter, totaliter, ccp namun semuanya karena bentuk iri dari kemajuan China yg efisien dibandingkan suara demokrasi yg terlalu banyak kepentingan dan berisik.
Tapi ingat dibalik kemajuan china ada banyak hal yg menjadi isu sosial baru. Yaitu tingkat kelahiran rendah, kehilangan identitas budaya, generasi muda yg kehilangan arah untuk berkeluarga karena gak ada lapangan perkerjaan digantikan ai dan automitasi.
China have come so far, give them credit.
Back in the 90s, made in China products already selling in Australia...
I don't see anything wrong here, please help me
Science and Civilisation in China (1954-present) is an ongoing series of books about the history of science and technology in China published by Cambridge University Press. It was initiated and edited by British historian Joseph Needham (1900-1995). China has several thousand years of tech experience while the West only has several hundred years since the Dark Age.
Why doesn’t any western countries complain about the US’s dominating in weapons manufacturing?
They should call it weapons overcapacity.
This technique is called micro-managing the macro free market. The government sets an industrial direction of what area to invest in, make credit cheap in those areas, and allow the free market to compete in this area. This is better than direct subsidy because there is still a risk to be taken even with free credit, it's just the risk is lowered. This is like a farmer deciding where to point the water at to decide which crop to grow.
I second that. But I would also suggest that it is intelligent farming.
State driven market economy for the win. New paradigm while neoliberal market economies are stagnatinf
Cos all the manufacturing was shut down years ago and gifted to china every thing made in china whats with all the redundent questions lol
It is slowly being shifted away from China and into other South-East Asian countries like India and Vietnam. The problem was that the West thought they could change China by exposing it to Western markets, but they didn't count on the level of control the CCP would place on its citizens.
"Gifted"? I think the Chinese work very hard to get to where they are now. That's like saying Apple if successful because they were gifted revenues.
This kind of "saviour" mentality is literally what's corrupting the West World.
uk government focus on getting re-elected by making noises with headlines like "stop the boat", "reduce nhs waiting times", "half inflation", etc when knowing full well that can't do what they promise because so much control has been given away.
Oh, stop comparing UK to China! That's so unfair!
Nothing wrong with this
And in spite of that their government isnt crippled by debt. Maybe these rich OECD countries should fix their priorities if they want to compete.
because we are too busy being racist without knowing it
Simple. China invests money in its infrastructures, US invests money into its tanks and missles.
Those numbers about gov aid are per capita or in total?
Make hay while the sun shines - because it will eventually rain. Nothing lasts forever.
China has the biggest population its very normal to become a big manufacturer.
What about India then?
And where are the mines located to produce the materials. Is uk government going to let companies dig the country up to mine the materials in our backyards
Well if it isn't the inevitable consequence of decades of neoliberal stagnation
Can blame China which is the world largest manufacturing hub.
I always thought labor is more expensive in OECD countries.
What is wrong with state aid .. USA aided military equipment industry
British? British Empire is no gone.
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West not having it
well great, all gov should support their local industries and jobs... what's new? where's the news?
What about production per population?
Everyone subsidises and what wrong with that? Go ahead everyone, go ahead and also subsidize.
Devils numbers , misleading! Where does money come from? Printing it?
It would be really helpful if a similar tea leave reading is done on the wastefulness of weapons systems and wars, Sure, China is helping "meaningful" activities such as industrial manufacturing, but that is being productive as opposed to the futile act of helping the US to fight losing wars. Can Sky News find out why the UK is at the back of the industry productivity queue, while it is right at the forefront when it comes to being a soldier boy?
They have smart decent working cheap labor
It was never an even playing field for China when China was poor anyway.
State would have gone bankrupt long ago if it subsides so many business & industries. Must be joking 😁
It's called industrial policy. China does offer subsidies and support to that many businesses and industries - but at a level that won't bankrupt it.
As I said in another post, China just chooses to spend on subsidies what the US spends on its military as a percentage of GDP. Which is a much better way of spending that money.
A planned economy is beyter than free market, obviously.
Ideology rules politically and were stuck in a loop.
It isn't. Our democratic system in the West may not be perfect, but it does deliver results.
The CCP says much, but does little. We're talking about a "long term" "by the science" system of governance that has more coal factories than the rest of the world combined, despite being the leading manufacture of green technology. This is also the country that has some of the worst air, water and land pollution on the planet.
They were also lying to the public about the origins to the virus (essentially saying its anywhere but not China) to the extent that it caused mass panic (people were literally throwing their pets out of windows out of fear they could be covid carriers) and racism against non-Chinese.
A lot of "leading" Chinese technology is derived from Western technology which was stolen by agents working on behalf of the CCP.
State subsidized Chinese companies destroy competitors with artificially low prices, then raise price when no competiotors left
😱 they have already destroyed all competitors. When are they going to raise prices?
@@garysetiadi366Fortunatelly, not yet!
Certainly, China supports businesses that contribute to societal well-being and job creation. This approach aligns with the principles of socialism, whereas the Western approach tends to favor a select group of wealthy individuals.
I question the data in the charts although mostly accurate to point. Did he look at capacity?
Where is India in all these? Similar to China in population, land mass and geography.
Focus is what they do..
In Africa it was hard to have smartphone, like poor people but China helped us and we can get everything at lw price
They own the supply line ...simple
People should youtube a video about "American vs China" rap... it's coming true in all sectors.
USA funding wars
China funds growth
European dominance is an anomaly in world history.
I remember the US government bailing out the banks in the GFC. Australia and other countries provided State support to businesses during Covid. It is not surprising that governments do that. The US currently gives financial incentives for green production in the US (almost $1 Trillion) in support. What seems to be the problem with China doing similar?
What do the other governments use their monies for.
China supports its own...
What about the others..
People in Britain really should be asking why the British government isn't doing the same thing. In fact, since it's a democracy, the Brits should be DEMANDING better!
Why were the bankers bailed out in 2008?
Why were so much spaffed away during the 20 years in Afghanistan?
Years of austerity!
The Royal weddings and funeral!
Hotels rented out to house migrants!
The list goes on and on and the good British people don't deserve this!
Chinese urbanisation required HUGE amounts of steel and cement. it was already like this in 2006, let alone 2024.
If comparing financial sector or military weapon sector, US , UK should be in much better position than manuafactering.
That is called the state performing its duties and responsibilities and being regarded as the prime actual driver of the economy. People have been sold the neo liberal nonsense of laissez fairisim and the state just merely providing the enabling environment, when even in the West it does much more than that, even though much less than is the case of China. The state and the government are not demonized in China as they are in the UK and US, and especially the latter. In mainland Europe, the state isn't demonized either.
They would probably still dominate without those subsidies because they are productive people. Those subsidies are often go to the least productive government linked sectors and subsidies do not come at not cost and come back to burden business in other ways such as taxes on workers, imports, etc. People often talk about how the chinese government does so much to help its business sector and how its unfair, I think that chinses business would even be more competitive if the government got out of the way.
then other countries can also provide aid to their manufacturers? Why do they complain instead of doing that?
Bring on the tariffs and qoutas now!!
Because it is the Lush environments and less restrictions on peoples ability to secure themselves.
So once secure money collected can be spent more wisely.
Here there is always been long historical struggle to secure oneself food water and shelter
are in the way.
Not so much in China.
Sol then the population flower as it were
into capable inventors, researchers and manufactures.
Tends to be bafflement for the yr generations because of their Credit card opportunity, unqualified jobs, low competition and cheaper housing
The secret is simple: "mind your own business"
Who is holding the 2nd industry lv., Nëw Sövïët: Hello
Everyone does that so it's beneficial for their people
Nobody stop anyone from subsidizing one's key industries. It is up to each country to focus on what they do best, to benefit everyone and the environment. I will blame china if they subsidize their luxurious products instead of solar panel, battery, EV, wind farms. It seemed UK and many other sleep in their cosy sofa for too long.
By the way, India with the same 1.4 billion population will be next to overwhelm the world market if the west continue to waste time in blaming other, instead of getting up to produce something good for everyone.
At 2:06, the chart shows almost 66% of the aid is below market rate borrowing. which means the companies need to repay and the lender earn less profit. Win-win less. To me it is a good strategy. Isn't it a good thing also when your government spends tax-payer money on tax and grant to help tax-payers?
Because they are very intelligent.
China government provides support for its companies and builds up competitive strength global wide.
Is it what government supposed to do , and do better?
UK , or US cannnot copy what China government did , because China has different system, for example, major China banks are state owned.
Per capita would be more interesting however I think it might still be the same
Per capita China is far more in the production of all those goods than any Western country listed...
It’s because we choose to give it all away to cheap labour
Indeed china is soo dominant 😮
Good , west cant expect to be lord forever
is that your analysis? really? go back to primary school