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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding
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To: Arran Yuan who wrote (2485)5/22/2019 12:15:20 AM
From: Elroy Jetson  Read Replies (1) of 13801
 
China's "rare earths production" is a prime example of this adjustment China needs to make, as you say "for their own good". In trying to succeed they've sort of lost the plot why they were doing all this. - Message 32164185.

They went from trying to benefit their people to becoming a warrior state with a slave population, not that's in any way historically unique. I think Chernobyl was a big influence in Gorbachev deciding their system was betraying their own people. The way they were "winning" was worse than losing.
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Just as Switzerland has kept out low-cost imports by cultural preference, Germany is also unwilling to trade advanced technology to make a profit in China, but they're been far more nuanced in their strategy - but also far more shrewd than most US companies in how they've done this.

Troubled VW has engineered an electric car platform (MEB) which makes no economic sense when built only for the European and American market. By offering this technology to China Inc "for free", so a lot of these cars are sold in China, the per unit production costs decline enough to make sense. - electrek.co

Daimler, BMW etc have higher price points so don't need to reduce their costs that much.
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