Swordsmyth
06-29-2019, 06:52 PM
Perhaps the greatest innovation of the technology sector has been the great lengths it has gone to destroy capital. No doubt, many unique and creative endeavors have been undertaken to this end. The opportunities are limitless.
For example, the technology sector business model is currently being exploited by the Communist Party of China to the detriment of the economic and security interests of U.S. citizens.
Adding insult to injury, this is taking place on the U.S. taxpayer’s dime.
Specifically, Chinese state owned enterprises (SOE), like China Railway Rolling Stock Corporation (CRRC), have been booking large metropolitan taxpayer funded transit contracts in cities across the US. For clarification, a Chinese SOE is a Chinese company backed by the Communist Party of China. The Alliance for American Manufacturing (http://americanmanufacturing.org/blog/entry/momentum-building-to-stop-china-from-taking-over-the-u.s.-transit-market) offers the particulars:
“CRRC already has won contracts to build rail transit in Boston, Philadelphia, Los Angeles and Chicago — and did so by significantly underbidding its rivals. In Philadelphia, for example, CRRC outbid its next closest competitor, Canadian company Bombardier, by $34 million. Its bid was $47.2 million lower than South Korea’s Hyundai Rotem, which already had a manufacturing presence in the city.
“CRRC can underbid its competitors so significantly because China’s goal isn’t to make money from individual transit contracts, as a company operating in a free market would. Rather, it wants to dominate the entire global transit industry, and is working to do so by entering and quickly dominating markets in other countries, including in the United States.”
https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/inline-images/4-CRRC-weekly-768x467.png
CRRC, weekly – the 5-year price chart of this giant Chinese SOE is fatally reminiscent of the chart of the South Seas Company from 1720 to 1725. Nevertheless, CRRC has in the meantime become the largest rolling stock manufacturer in the world, eclipsing former market leaders like Siemens and Alstom. [PT]
Similar to technology sector businesses, which operate at a loss and cannibalize competitors, CRRC and other Chinese SOEs can operate at a loss and cannibalize the U.S. transit market. But instead of benevolent investors backstopping them, Chinese SOEs are backstopped with fake money from Beijing.
More at: https://www.zerohedge.com/news/2019-06-29/how-beijing-uses-fake-money-cannibalize-us-transit-market
For example, the technology sector business model is currently being exploited by the Communist Party of China to the detriment of the economic and security interests of U.S. citizens.
Adding insult to injury, this is taking place on the U.S. taxpayer’s dime.
Specifically, Chinese state owned enterprises (SOE), like China Railway Rolling Stock Corporation (CRRC), have been booking large metropolitan taxpayer funded transit contracts in cities across the US. For clarification, a Chinese SOE is a Chinese company backed by the Communist Party of China. The Alliance for American Manufacturing (http://americanmanufacturing.org/blog/entry/momentum-building-to-stop-china-from-taking-over-the-u.s.-transit-market) offers the particulars:
“CRRC already has won contracts to build rail transit in Boston, Philadelphia, Los Angeles and Chicago — and did so by significantly underbidding its rivals. In Philadelphia, for example, CRRC outbid its next closest competitor, Canadian company Bombardier, by $34 million. Its bid was $47.2 million lower than South Korea’s Hyundai Rotem, which already had a manufacturing presence in the city.
“CRRC can underbid its competitors so significantly because China’s goal isn’t to make money from individual transit contracts, as a company operating in a free market would. Rather, it wants to dominate the entire global transit industry, and is working to do so by entering and quickly dominating markets in other countries, including in the United States.”
https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/inline-images/4-CRRC-weekly-768x467.png
CRRC, weekly – the 5-year price chart of this giant Chinese SOE is fatally reminiscent of the chart of the South Seas Company from 1720 to 1725. Nevertheless, CRRC has in the meantime become the largest rolling stock manufacturer in the world, eclipsing former market leaders like Siemens and Alstom. [PT]
Similar to technology sector businesses, which operate at a loss and cannibalize competitors, CRRC and other Chinese SOEs can operate at a loss and cannibalize the U.S. transit market. But instead of benevolent investors backstopping them, Chinese SOEs are backstopped with fake money from Beijing.
More at: https://www.zerohedge.com/news/2019-06-29/how-beijing-uses-fake-money-cannibalize-us-transit-market