Hamish Douglass: Trump is right

Yes he is, via The Australian comes the Magellan maestro:

“I actually think Trump isn’t right about a lot, but he is right about the core issue that they appear to be doing it on unfair terms.

“They’ve been stealing intellectual property, they’ve been requiring foreign companies who want to participate in their massive market to transfer their IP as a cost of doing business, and if they can’t get it, they go and steal the technology through their cyber theft. They have massive state-owned enterprises, which get huge subsidies.

“They use those subsidies to take market share on a global scale. It’s a very real issue and the US is trying to reset that relationship … but China has outlined a list of industries it wants to dominate.”

“It’s become a little more uncertain in the past few weeks whether or not this will actually be resolved,” he said. “We could get into a severe, trade-war/cold-war environment or we could actually have it settled and it’s very difficult to know which way this coin is going to flip. The markets are pricing that Trump is going to do a deal with Xi.

“Our best assessment is that it is probably the most likely outcome, but there are political overlays — what is the best thing going into the presidential election in 2020, maybe a dispute with China and immigration should be the big topics.”

Well said. It marks a turning point of sorts. Australian “business” (whatever that is) is a terrible China groveler. The more it comes out against the Communist Party of China the better off Australia will be.

Comments

  1. and Chinese Bill Shorten and Chairman Penny Wong wanted to being Australia into China’s sphere of influence at the expense of our alliance with out traditional ally the United States whom we share a common language and culture.

    • SupernovaMEMBER

      The ALP still don’t listen, are so arrogant and Penny Wong still retains her job as Labor’s leader in our Senate. Further, Paul Keating is a director on China’s $200 Billion New Development Bank… The cleanups going to be interesting and it’s only just begun.

      • @Supernova, leftists around the world have shown no inclination to self-reflect evident in their shenningans in the US and UK and Australia is no different, they’ve been infiltrated by hard-core leftists who are nothing more than professional activists.

    • You forgot Vice Chairman Dan Andrews who actually signed Vic up to the belt and road, and no one is allowed to review what he signed…how does he do that? It’s fing unbelievable that something this important isn’t reviewed by parliament, or are they all complicit??

      We have to stand up to China or they will squash us. I posted before on this, but people don’t seem to get it that they are stealing from our future wrt to IP theft, and jobs across to board. The MSM/ABC are complicit.

      • @afund, yes, how could I forgot Vice Chairman Dan Andrews, China’s Manchurian candidate in Australia.

    • And who made Australia a Chinese bi*ch in last few decades?
      Libs are no better when it comes to selling the country

      • @doctorx yeh, I don’t see Liberal politician’s signing formal treaties with China.

  2. BubbleyMEMBER

    I’m aware of businesses that have their goods made in chinese factories. They receive their branded goods out one door and the exact same product is sent out another door with a different brand name stamped on it for 1/3 the price.

    Total theft of IP and brand damage.

      • BubbleyMEMBER

        True. Personally I wouldn’t go near them and think any business that does needs its management hit with the stupid stick.

        If I was looking for slave labour, which is the only reason businesses have their goods produced in China, I pick another country. Cambodia, Laos, Pakistan, Bangladesh would be options. Haiti is also a good option as its a lot closer to the US and desperate for employment for its people.

      • Haiti has electricity for 3 hours a day, 40% illiteracy, staff will never turn up for work and if they do they will steal anything. Anyone decent is employed directly or indirectly thanks to foreign aid, distorting the economy.

        Why do you think Africa has no industry despite ‘cheap’ labour?

        Haiti is at the bottom of global IQ like other African countries.

      • BubbleyMEMBER

        Haiti produces clothing for Boxercraft, Hanes and Walmart.

        None of these are minor companies, proving your point invalid.

    • Ronin8317MEMBER

      Isn’t that how ‘home brand’ and ‘private labels’ in the supermarkets works? I never understand why any manufacturer will take up that model..

      • BubbleyMEMBER

        After the melamine in milk scandal, I don’t eat Chinese produced food. That’s just my own personal preference.

        But Apple getting the iPhone made there is just plain stupid – and only one example of handing over decades of IP to a military government.

      • John Howards Bowling Coach

        Ronin, it’s a fact of life you have no choice if you’re an FMCG producer in this world currently. The retailers are pushing private label, if you don’t want that contract not only do you lose that volume they will likely also delete your branded goods. You’re screwed either way. The retailers are abusing their market power, but no one is brave enough to open a case against them, especially in Australia where you only have 2 real customers.

    • As you probably know I’m into my cars, all you have to do is look at all the counterfeit performance/aftermarket parts out there to know what’s going on.

      https://www.alibaba.com/product-detail/RECARO-SEAT_50003455075.html?spm=a2700.7724838.2017115.495.746d20f28JXYWJ

      These seats are probably worth a few thousand dollars new. But you can get them for discounts on Alibaba. 😀

      Not only that but the amount of copied wheels, Takata harnesses (which are a safety item) and the like is unreal.

      I avoid the stuff like the plague, but the genuine and fake stuff must be made in the same factories because they often have the original logos, warranty cards etc.. it can be hard to tell the difference in photos, but in person the quality level is often night and day. Been stung a few times on buying stuff that turns out to be copies. Leaves a bitter taste in the mouth.

    • I have no sympathy. Australia has economic diversity at level of Zimbabwe and we are a moment before suffering very badly from the choices of our government self serving morons over decades exporting our technology for peanuts, removing tarrif protection on our special industries like skins and tanneries and leather manufacturing, and textiles, and then the companies exporting manufacture to China. Tough on your manufacturing friend but that’s business that goes on and he survives as Aust goes down and down. Hollowed out in every way.

      • BubbleyMEMBER

        Its not a personal friend of mine but a high tech sport equipment company.

        And I agree. I personally wouldn’t get my products made there because of lack of IP security.

  3. Ronin8317MEMBER

    It has become a self-fulfilling prophecy. The CCP wants to acquire technology in fear that they’ll get cut off by the rest of the world, and their action to acquire the technology cause them to be cut off.

    It comes down the timing. If the trade war hurt China so much that it triggered a global financial crisis before the 2020 election, Trump will ‘own’ the crisis, and you can expect every single media outlet to say “trade sanction caused another Great Depression”. The next 12 months will be.. interesting.

    • The financial crisis comes when the reserve bank turns the tap off. They will do it anyway and the media will still blame him so I think he is trying to get the people behind him as this move is pro USA. I don’t think he will back down

  4. What the US wanted was unfettered access to the China market, except the Chinese said fk off. If they hadn’t the US would have steamrolled them. They went into China on Chinese terms and now are crying about their own stupidity.

    Not saying the US should allow it to continue, but if you ask me I think China’s original behaviour was justified in protecting their companies. Compare them to us, and what do we have?

    • Apparently – that ass-flaring in fellow primates is why blokes get excited about clevage.

      The visual similarities between the ready-to-submit-primate-ass and clevage are close enough to be confused by the regions of the brain that trigger sexual arousal.

    • +1. China just replicating past actions of American and other Western multi nationals with the help of their respective governments. Seeds have been sown, all we can do is look on and hope for some leftovers down here in ozland where we borrow to pay welfare to our citizens who dont work or cant find work as most of it has been taken. Shelf packers and delivery drivers are what is left. Oh, and RE sales for afew more years until they too will have gone ofshore

    • Stewie,

      See if you can get this deleted.

      Hello dennis,
      Stewie Griffin replied to your comment on Hamish Douglass: Trump is righ

      Lololol. Jello for a spine!

  5. The scorpion and the frog is an excellent analogy. The Peoples Republic is neither for the people – it’s a total oligarchy – and hardly a Republic. Why do they behave the way they do? Because as the scorpion said, it’s who they are.

    MacroBusiness did you see the story in Nature and ZeroHedge on CFCs. Our Chinese friends are sending the Ozone problem back to the 80s by reneging I’m yet another agreement.

    A state built on a lie

  6. Yes the US aspirations are sensible but it will take 20 years and a plan. They don’t have 20 years and they don’t have a plan. Leaving it to the market won’t work and when the Permian rolls over their position will be a lot worse.

    Managed trade, which is where this is going , leads to capital controls, same as in China.

  7. John Howards Bowling Coach

    The reality for most businesses scrambling to get in on the China Dream is there is nothing but bullcrap. I am paid handsomely by some ASX 200 companies to direct their business in China and have been an expert on that market for over 10 years. The fact is that for most Australian companies the China market is around the same size as the Australian Market BUT every competitor in the world is scrambling for a share AND they mostly consent to losing money to enter the market. However with no partner or customer loyalty, when they try to raise their prices they lose all of the business. China is a Mirage unless you have a known brand of several very niche items as they majority of the people are still dirt poor and even the rich Chinese are stingy as hell unless they are buying something to give them perceived social status. China knows this BUT they know Foreigners are falling over themselves to try to get into this false economy and they are ready to rob you blind to slowly come to this reality. Last year the CCP ran a trade show covering all industries, I doubt anyone from outside China made a $dollar most lost at least US$15k just to be there, there will be many foolish companies lining up to do it again.

    • BubbleyMEMBER

      ^This!

      I’ve had quite a few people (some chinese) say “you should get into the chinese market, you’d do great!” When I point out that most people in china don’t actually make a lot of money, the response is “but there’s a billion of them and you only need a small % to make a lot of money.”

      And that is the flaw in the logic. A business has to spend a lot of money to filter through a large population to get to the few who have a high disposable income. Whether it is better to spend that money in your own country or focus on PRC is up to each business but I think my dollar spend would be used better here in Oz.

  8. Trump is doing the worlds dirty work cause no one else has the balls…look how quiet EU is, those cowards never fought to control China. Weak Obama the same. The lefties hate Trump because “They don’t like him…” stuff that, he’s not the pope, he’s great…watch next week, all the Russia collusion delusions will be exposed, the Democooks are v nervous.ganna be great to see the commo’s cringe and start screaming…love watching this…

  9. I’m still seeing way too much over-analysed blablah about why the ALP’s policies failed (they didn’t, the vote was still very strong) and not enough about one B. Shorten, who is inadequate in every way and unworthy of being PM after already having been rejected by the populace.

    Shorten is seriously unlikable. He was never going to win over the lower income / lower educated classes with his stunted speeches and classy wife-trophy. The ‘quiet australians’ swing to the LNP (or to anyone) based on the leaders capacity for good BBQ talk. And Shorten is a shocker.

    If they had a better leader, the ALP would have made it over the line. Instead, they’re now lurching to the right.

    And they’ll cop another floggin in 3 years time.