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China Unseats US As Global Investment Leader In Financial Technology: Report (fortune.com)
Paul Fernhout writes: China has unseated North America as the global investment leader in financial technology, or "fintech," according to Citigroup's latest report on "digital disruption." The researchers attribute the power shift to the rise of what they term "Chinese dragons," an industry term for the biggest upstarts in Asia. Think of Ant Financial, the payments spinout of Alibaba, as well as Lu.com, JD Finance, and Qufenqi, emerging eastern juggernauts that are generally less familiar to consumers in the west. China accounted for more than half of all fintech investments globally in the first nine months of last year, the report said. Specifically in terms of venture capital, the country more than doubled its worldwide share of the investment category, rising to 46% of the global total versus just 19% the same period in 2015. The U.S., meanwhile, sunk to 41% of the global total from 56% during the same period in 2015, putting it behind China.
It's gonna be yuuuge! Trust me! I know Jaina!
Trump kills TPP, giving China its first big win
https://www.washingtonpost.com...
"Economists have warned that many of Trump’s proposals — including suggestions that he would impose blanket double-digit tariffs on goods from Mexico and China — could backfire on the American economy by causing prices to rise or igniting a trade war,"
A retreat from the TPP now gives Beijing, which has been negotiating its own trade blocs, a chance to fill a void. Since Trump's election, the Philippines, Singapore and Malaysia have shifted toward China's proposed Regional Comprehensive Economic Partnership, which would also reduce tariffs — without many of the standards put in place by Obama's plan — and redirect Asian trade China's way. Other nations in the region are likely to follow suit.
I don't read your sig. Why are you reading mine?
We are going to put tariffs on imports? That will not help the economy. It won't help anyone.
Products will get more expensive for people who have money and incomes today. If we forcefully bring manufacturing jobs back here, it means that workers and business owners have to pay extra for goods due to the salaries of the workers in those jobs.
I mean, we have 90 million people not working today of which only about 20 million can probably work -- maybe even less. The rest are either too young, students, disabled, or old.
So we are going to put that 20 million to work, by paying $10 for a screwdriver instead of $5? By paying $300 for a phone that may cost only $200 today?
From the perspective of an income earner isn't that worse than being taxed and having a portion of the tax go towards welfare for the unemployed?
The advantage of giving someone welfare over paying them to do unnecessary work is that the person on welfare would have time to learn new skills plus you lose the overhead costs. And yes if someone or something else can do my work more efficiently then my work is by definition unnecessary.
To explain the jingoistic fear mongering carp of a headline, China doesn't have a good banking system and can't because of incredibly overbearing government regulation. Loans to state held companies are held at ridiculously low interest rates on order of the government, money can't move in or out of the country without a lot of trouble, and investment and loans on things other than property are tightly restricted. This allows room for "totally not a bank" banks, aka "Fintech" systems to catch on in the country. Without technically being a "bank" the kind of onerous restrictions and oversight of financial institutions in China can be lessened, allowing people to put, lend, and move around their money more freely than in the formal banking system. Meanwhile in the US, while the Frank-Dodd act is ghastly, overbearing, and so F*ing long no one on earth has actually read the damned thing, much of it falls on smaller banks, aka competition to big banks. Which, thankfully, never the less still have enough comptetition among themselves, and few enough restrictions at least compared to China, that they're actually adapting to the internet and etc. fairly well, leveraging online banking and etc. to keep pace with any fancy schmancy "fintech" firm Silicon Valley et al. can come up with. Meaning, sure, China has a lot more "fintech!" But China NEEDS a lot more fintech, or rather needs less arbitrary government interference that favors the government itself over the people, and fintech can help fill that need. The US, and the rest of the world, doesn't really need "fintech" that much. The banks that exist, whatever their faults, are good enough that fintech isn't going to solve much of their problems.
Rectal prolapse
Yes.. You are addicted to cheap consumer goods.
Right now that means a proportion of the money you spend hours to China.. And a big lump goes to offshore tax havens for the corps.. But at least their domestic share price goes up..
However.. Very soon those goods will be designed owned and build by purely Chinese companies. Then much more of what you spend will leave the country.. forever.
So.. you can either give up on your cheap consumer goods of wave goodbye to your economy.
It's really that simple. China is already out spending America on r&d. It's people are more success hungry. They have less invested in a nice safe middle class existence. They are going to innovate and produce you in to the dirt.
In exactly the same way the us did to Europe back in the day.
Your choices are few and difficult.
And smart people.
Ha! You think smarts can make you rich. You poor deluded fool.
I have no desire to be rich. If I did, I would be working. I'll have food though.
where did a lot of that money come from.... US
Pakistan has been supporting the Taliban for the last 15 years, and harboring many Taliban affiliated, like Osama bin Laden, so I don't consider Pakistan an innocent, victimized nation.
until we stop. electing. terrible. leaders
But that in turn is impossible until you fix your asinine political system.
(Direct democracy ? Mixed parliament ? Multiple turns presidential election ? Openly admit that the president isn't such an important position after all ?)
"Sufficiently advanced satire is indistinguishable from reality." - [Tips: 1DrYakQDKCQ6y52z6QbnkxHXAocMZJE61o ]
They are giving us product in return. We keep the benefit of that product forever.
At least until its lithium battery spontaneously explodes.
Because nobody in the quickly formed assembly chain (including the uncle of the neighbour who previously did work on a vaccum cleaner assembly chain. He did a bit of soldering. He should be okay to work on this hoverboard, right ?) did think about putting a battery management chip, or even a simple fuse.
("But this hover board costs only 249$ ! The other used to cost 1199$ !!!")
Even if it's a toy that helps in child development.
Yup ! The child will be helped a lot ! Specially by the lead poisoning (after the child survives the fire started by the exploding battery) because the toy was painted with the cheapest possible pigment available.
("But it was so cheap and affordable !")
The lower cost screwdriver may allow you to live in a better house.
In a better *warmed* house.
Because it got burned down.
(You can count on china managing to get a simple screwdriver exploding,
just because they found a way to make its price cheaper than 0.01$ per crate)
They are buying stuff from us like airplanes, construction equipment, entertainment, and high tech stuff.
Buying for now.
Some of which will get disassembled, analysed.
And cloned/recplicated.
In a couple of years, they'll be able to locally produce similar products of approximately equivalent built for half the price.
They'll also be able to produce the same stuff for 1/10th to 1/20th of the price and flood your market with it, but at such a built quality that the stuff won't as much have a MTBF as a "number of seconds between opening the crate, and the stuff breaking down. And catching fire".
How does Germany have a trade surplus with China?
Because for some products where quality is critical (foodstuff is an example) some Chinese don't actually even trust the quality of their own merchandise and prefer to import quality from Europe.
I would guess quality German cars might too be on this list ? /. some time ago] is going to work ? I mean, "work *more than a few meters* " ?)
(Really? China? You think your idea of an electric car that comes nearly free thanks to massive cost reduction and the rest paid by advertisement [mentionned on
That's because Germans have figured out what Chinese want to buy and they are selling to them.
I would guess : quality German engineering ?
China gets a lot of its machinery from Germany. Germany doesn't have tariffs on China and it does robust trade two ways.
Having lived a couple of years in Germany, I have the impression that Germany doesn't need tariffs on China. The German people seemed to be over-obsessed with build quality and repairability of anything and regarded some "no-name asian" products with suspicion. In such condition you don't need need a tariff to regulate competition.
Yup, German are as much obsessed with low prices as other, but they won't compromise as much on build quality as other markets.
"Sufficiently advanced satire is indistinguishable from reality." - [Tips: 1DrYakQDKCQ6y52z6QbnkxHXAocMZJE61o ]
What does TPP have to do with African American's feelings in four years? Do you understand how to make coherent points?
How the Chinese wanted the TPP to work:
https://media.giphy.com/media/3o6ZtlOutQ2vwbF7vW/giphy.gif
http://www.huffingtonpost.com/...
One major emphasis of the TPP was expanding US copyright and patent "protection" internationally, provisions which large-corporate globalists desperately wanted. All sorts of copyright terms would be extended, generic drugs would be more expensive and harder to get. Go ahead and support Hollywood and Big Pharma now that Trump was the one to kill it. Had Clinton or Sanders been the newly elected president to kill it, we would be hearing from a different set of critics.
95% of the worlds consumers live outside the USA - 40% of all the jobs in this country are supported by foreign sales - and the worlds greatest negotiator walked away without getting a thing. China may be great again!
What the fuck is "financial technology"? Fintech sounds like something to do with fish, or perhaps Finland.
A modern bank is 10 IT guys for each 1 finance guy. The databases used to verify and process transactions are legion. The future is blockchain because it enables banks to shutter about 80% of their backend legacy systems and fire +/- 80% of the developers and sysadmins they keep employed because it makes all the verification, authentication, AML trigger tests etc...10x easier to handle and its all going to be on shinny new hardware that will enable banks to ditch the mainframes and ancient Solaris boxes they are still running. That's where all the investment is going. The future of banks is 1 coder doing what 5 do today.
Try selling your American made goods in China -- good luck doing it without either a Chinese partner (preferably one with CCP ties a mile high) or a tech sharing arrangement or work share arrangement. The only free trade we have is one way -- Chinese goods come into the US "free" and that's it. And that was all well and good when China was a low income country that was decades away from competing in high end high quality manufacturing or innovation. China is not a low income country decades away from parity. They have parity across a range of industries and their wages now surpass those in much of Eastern Europe. Hell, 300 million of them are now richer than the average Portuguese guy -- they've hit the lower end of the Western EU level. That means the one sided trade practices have to end. The only question is how you go about accomplishing the change. With Obama we would keep playing the Ostrich with our head in the dirt while they obliterated what comparative advantages the US still had left. With Trump...who knows. Give the dude 3 months.
Realistically what is going on here is that china has started investing in this area, as it has massively behind - the US and Europe are miles ahead, and China aren't even on the radar. I'd suggest London is the centre for development, whilst the US provides the hardware expertise. I'm pretty certain i've not worked with any Chinese kit over the years in trading systems, and i'd be surprised if this became common for various reasons (and let's face it, security concerns would be on the list).
I hear China is great at making shoes, ties and suits. Isnt that the whole reason the whiner in chief has his and his daughters clothes made in China?
Didn't read article; So this is saying last year, the net percentage increase of investment went to Chinese fintech, not gross total investment? So the US wasn't super innovative last year in that sector, but has more gross investment overall?
A big part of the cause of the 2007/2008 crash was too much financial innovation (mortgage-backed derivatives, specifically). This may make help China's economy seem to be growing well in the short-term, and will almost certainly make some people rich, but it's very likely to blow up in their faces.