China declares economic war on Japan

[Casual Observer 597]

"China declares economic war on Japan

 

China is trying to hurt Japan economically, to gain leverage in its campaign to take control of the Senkaku/Diaoyu islands. In the 2010 confrontations, China took revenge on Japan by terminating shipments of rare earth minerals, needed for manufacturing of many of Japan's electronic products. In the current confrontation, the Beijing government is encouraging the Chinese people to demonstrate and protest against Japanese businesses in China. The government urged protesters not to use violence, but that part of the message is clearly not getting through. Protesters torched a Panasonic factory and Toyota dealership, looted and ransacked Japanese department stores and supermarkets in several cities. China's National Tourism Administration ordered travel companies last week to cancel tours to Japan over the weeklong National Day holiday in early October. AP and Bloomberg

 

Chinese Communist Party urges punitive sanctions against Japan

 

The Chinese Communist Party (CCP) is urging strong punitive sanctions against Japan, for its "well-orchestrated plan" to take control of the Senkaku/Diaoyu islands, according to the CCP's official newspaper:

 

"The "nationalization" of the Diaoyu Islands by Japan after "purchasing" them from a "private owner" is ridiculous and cannot change the fact that they are Chinese territory. ... China should take strong countermeasures, especially economic sanctions, to respond to Japan's provocations. Military consideration, however, should be the last choice.

 

The United States has frequently used Article XXI Security Exceptions of the WTO (taken from the earlier General Agreement on Tariffs and Trade) to impose economic sanctions on other countries. The security exception clause says a country cannot be stopped from taking any action it considers necessary to protect its security interests. That means a country can impose sanctions on enterprises, financial institutions, organizations and even other countries' central and local governments. Taking a cue from the US' practice, China can use the security exception clause to reduce the export of some important materials to Japan.

 

China didn't announce any sanctions against the Philippines in April, but it froze banana imports from that country in response to Manila's aggressive attitude in the Huangyan Island dispute. Though the economic countermeasure forced the Philippines on the back foot, it also harmed the interests of some Chinese enterprises.

 

So it is important for China to devise a sanction plan against Japan that would cause minimum loss to Chinese enterprises.

 

The US' capability to impose economic sanctions on other countries is based on its economic strength, huge share in global trade, financial institutions and global intelligence network. China, too, has the capability to impose sanctions on other countries now that it is the second largest economy, has the largest foreign reserves, and is the largest exporter and second largest importer.

 

An analysis of Sino-Japanese economic interdependence shows that Japan's economy will suffer severely if China were to impose sanctions on it. China's loss would be relatively less. ... So it's clear that China can deal a heavy blow to the Japanese economy without hurting itself too much by resorting to sanctions.

 

Apart from its reliance on China, Japan has been suffering from other economic ills. First, Japan's massive government debt is increasing substantially. ... Third, Japan's fiscal deterioration is likely to continue. There are enough indications that Japan's economic growth in 2013 will slow down or slip into another recession. The irreversible trend of long-term economic downturn, combined with Japan's aging population, will eat into the country's household savings, and the declining purchasing power of the Japanese will increase Japan's fiscal debt. ...

 

But instead of blindly boycotting Japanese goods, China should work out a comprehensive plan which should include imposition of sanctions and taking precautionary measures against any Japanese retaliation. China should also have several rounds of policies ready to undermine the Japanese economy at the least cost of Chinese enterprises.

 

Furthermore, in case Chinese enterprises suffer because of the sanctions, the Chinese government should be prepared to compensate them. And once China imposes sanctions on Japan, the government should ensure that all enterprises in the country, domestic and foreign, obey the rules."

[NorthernVike 2,080]

The chinks aren't very smart are they? Europe is in the shitter, The US economy is about to take yet another step back and now they want to fock with Japan's economy. They will end up hurting themselves more than the Japs. And if they take it too far the US will biotch slap their economy into a recession if we decide to say fuckem to their exports. Global economics are lost on them.

 

 

I hope you enjoy living in a fourth world country Volty.

[RLLD 3,539]

The Chinese are willing to absorb a hit to gain something later.

 

This is how they overtook a number of markets over the years, actually selling raw materials and products well below their intrinsic value and destroying the producers elsewhere in the process. After removing the competition, they could then fully control prices.

 

They love to complain about being mistreated, how unfair everyone else is being, but they themselves are easily the worst market player, far more abusive than anything else out there

[Voltaire 4,582]

 

I hope you enjoy living in a fourth world country Volty.

 

Oh, don't worry about me. I'm recession-proof. I can teach English to foreign kids as well as or better than anyone on the planet.

 

If China goes down the sh*tter, fock this place. I'll go to S. Korea, Taiwan, Indonesia, or Malaysia. Or I could go to Europe, but I don't know if I would need special certification to teach there like I would in the US. Unless it's like a few weeks or months, I'm not interested in getting any additional training.

 

As an added benefit for leaving China, I can watch youtube. While I'm at it, I may even try to figure out how to set up a facebook account and I'd be curious to see if I'm not too stupid to use twitter either.

 

But heck, I would miss the rampant piracy that goes on here.