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To: KDD

Could you enlighten us by giving a few words to define the communist business model?

I suspect you have no clue as to what it is or you would not have made the post


17 posted on 11/07/2011 5:16:20 AM PST by bert (K.E. N.P. +12 ..... Crucifixion is coming)
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To: bert
In the US and Europe, businesses are expected to survive independently. They are expected to raise finance themselves, compete for resources and people, establish their own customer base and make a return on their investments, a profit big enough to reward shareholders and reinvest for the future. Businesses which fail to achieve this balance go bust.

In China things work differently. There is another sort of business model, partly a legacy of the country's communist government. Big businesses are not expected to stand in isolation. They are expected to retain close links to the state. They are often directed centrally, by the government, with senior managers moved between firms on the orders of Beijing. Many bosses remain active members of the Communist Party, with clear lines of loyalty and understood expectations. Although many large Chinese firms are listed on local and international stock markets, their presence there is mostly to gain access to cheap finance. Chinese businesses have much less need to make a profit or generate dividends. The rewards for investors are expected to come from how well they gamble on the market.

Chinese firms can also be provided with their customers by the state, as if on a platter. When big domestic tenders are up for grabs, an increasing number are only open to Chinese firms. This ensures skills, jobs and wealth are kept at home, not sucked away by foreign-devil employers.

Chinese firms are often given privileged access to new technologies too, removing hefty R&D costs. Leached away from foreign firms and then localised, Chinese companies have frequently acquired their capabilities without cost. While this breaks foreign laws, many Chinese firms see their actions differently.

18 posted on 11/07/2011 5:38:51 AM PST by KDD (When the government boot is on your neck, it matters not whether it is the right boot or the left.)
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To: bert

The wages for the average Chinese worker is 133.00 a month.

Lower for prison and child labor.


19 posted on 11/07/2011 5:49:07 AM PST by KDD (When the government boot is on your neck, it matters not whether it is the right boot or the left.)
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