read this article in scope, two clicks
China is using 16 SOE's as a cartel membership to create high technology cars. Compare that to free market car companies that do not cartel and have to use their own market force holdings and none government spending to create a competitive product. Wonder why the US has had to re-captalize its car industry think no further, China's allowance of interntaional anti-trust violations and cartel violations has caused huge uncompetitive rifts in the industry.
http://www.2point6billion.com/news/2010/08/20/soe-alliance-in-china-to-invest-billions-in-electric-and-hybrid-cars-6811.html
"The State-owned Assets Supervision and Administration Commission (SASAC) initiated the alliance, which was formed on Wednesday, and provided it with US$186 million in startup capital."
"Some of the country’s smaller, private auto-makers have voiced concern that such an association may hamper competition and that is wasn’t clear who would own the intellectual property rights."
You know I am getting speed wobbles working out here all by myself. One standing Lion can't fight a battle all by itself for fair international economies. Were are my friends, in fair, competitive, free trade?
This is starting to cause me pain and sorrow and suffering.
China is currenty buying up massive foreign reserves of resources necessary to produce cars. Cuasing the prices of resourcs to rise for other competitors who can't afford to compete with China's resource SOE's. Which then forces two plays one the other resource companies have to then pass on the higher price which can't be padded down the line of cartel activities like China uses after the free market resource company purcahses mine contracts or, we have to be reliant on China. Which as click one shows is already breaking interntional anti-trust laws and cartel violations to create a neo-mercantalist enviroment for the car industry in China. Which then weakens the market and allows themm to purcahse their competitors as there are no lions and tigers and bears who wish to stand up for the free markets in international competition. were not in Detriot anymore todo.
http://www.bloomberg.com/news/2010-07-09/china-reduces-rare-earth-export-quota-by-72-in-second-half-lynas-says.html
"China, the world’s largest rare- earths producer, cut export quotas for the minerals needed to make hybrid cars and televisions by 72 percent for the second half, raising the possibility of a trade dispute with the U.S."
This kind of detremental strategy I do believe my beloved Congress if you are still lead by the good boy scott. Calls for roar. Let me hear it.
Thus read article on this scope.
http://www.autospies.com/news/China-Surpasses-U-S-In-Car-Sales-To-Become-The-Number-One-Global-Market-50926/
This padding of their domestic market is another way to create suplus SOE funds that can be used to create more international unfair competition. Which in a few years could allow China to open up a can of dump all over other countries markets for cars. Which would then obliverate the free markets ability to compete fairly in international car industries. Thus then causing politicians to create laws to allow Chinese cars into the US as US cars would not have the international marekt place to allow over head to be spread out causing prices to go up. Much similar to the reason why we see such cars being created cheaper.
Rider I
This Lockique is for public debate, proper legislation, better economic civil liberties, ever changing economic theories and a well respected resolve to what international SOE’s inherently do. [def. of lockique (Use Tomb search before reading]. If China allows I would attend a SASAC meeting. If I had one sentence, it would be: neo-mercantlism crashes,then devours free enterprises and free trade. or comparative advantage needs work. Root Economics (R) Rootologist. The Cosmic Economist.
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