[Marxism] China's growth accelerates in Q2

[S. Artesian]

No, I am right.  The investments made for auto production are separate 
investments governed by the law that requires such investments to introduce 
new technology into production.

These auto industry investments come much later in the course of FDI 
[nothing unusual about that acronym], and do not in amount match the $700 
billion or so in UTILIZED, actually deployed in production, FDI in the 
export sector.


----- Original Message ----- 
From: "Lüko Willms" <lueko.willms at t-online.de>
To: <sartesian at earthlink.net>
Sent: Thursday, July 16, 2009 4:59 PM
Subject: Re: [Marxism] China's growth accelerates in Q2


S. Artesian (sartesian at earthlink.net) wrote on 2009-07-16 at 10:02:41 in
about Re: [Marxism] China's growth accelerates in Q2:
>
>
> There is no doubt that China's growth since 1984 has been powered by FDI,
> and FDI has [by law, actually] centered on exports.

  I am not sure what you mean by FDI -- using such strange abbreviations is
an obstacle to a free discussion.

  But if you mean by FDI "foreign direct investment", OK, then you are not
right.

  Look at the Chinese automobile industry. The investments made there by
Volkswagen (VW), General Motors (GM), Toyota, Honda, Daimler, etc, are all
centered in a production for the Chinese national market. I don't know of 
any
sizeable Chinese car exports. OK, they (e.g. Geely and Brilliance) try, but 
not
really sucessfully. And the China will probably achieve this year finally 
the
position of the worlds largest national market for automobiles.  BTW, the
Chinese partners in the joint-ventures with foreign automakers have each
several partnerships with different foreign companies which compete on the
international market.

  The recent investment of MAN acquiring 25% plus one stock in Sinotruk,
Chinas largest truckbuilder, is somewhat different -- one of the main goals
of MAN for this investment is the development and production of a truck in
China for export to Asia (incl West Asia) and Africa. MAN is the world third
largest truckmaker.


Cheers,


Lüko Willms
Frankfurt, Germany