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They have a centrally planned economy. It's almost like the Chinese communist party is indeed made up of communists.
by noosphr 4mo ago
They have a centrally planned economy. It's almost like the Chinese communist party is indeed made up of communists.
- zx8080 4mo ago> They have a centrally planned economy. Pre-1978, not now.
- hollerith 4mo agoNo, most investment is still done by banks controlled by the Party whose priorities are set by Beijing.
- zx8080 4mo agoIs that similar to the Fed system here in the US?
- deleted 4mo ago[deleted]
- hollerith 4mo agoNo. Beijing instructs Chinese banks what to invest in (e.g., AI, electrical generation infrastructure). The Fed has never done that. When there is an economic downturn, e.g., the Dot Com crash in 2001, the Fed makes it easier for US banks to borrow money. When there is a lot of investment, e.g., now with all the investment in AI, the Fed makes it harder for the banks to borrow money (because the money is not needed as much because the economy is being stimulated by all the spending by the recipients of the investments into AI). Beijing does that, too, no doubt, but again they also decide for the majority of the investment money, which parts of their economy get the investment.
- nixon_why69 4mo agoIt's still 1.4 billion people, 100 million party members, and a mostly capitalist economy where nobody stops you from starting a business. Decisions get made at all levels. What's interesting is that, however you want to characterize their system, they're actually investing in a more diverse set of things than we are. Yes, AI is on the five-year plans but so are lots of other things. The US elite investors are pretty much only AI, all the time right now.
- hollerith 4mo agoI don't agree with "mostly capitalist" when (again) most investment is made by regional banks that are state-owned enterprises with strong guidelines set by Beijing about what sectors to invest in.
- nixon_why69 4mo agoYou don't find it interesting that this leads to more diverse investments with a larger number of stakeholders?
- hollerith 4mo agoI dispute your assertion that Chinese investment is more diverse and your assertion that most US investment these days is going into AI. Also, how are you defining stakeholder and what makes you think there are more of these stakeholders in China? China has benefited greatly from investment by US investors. Their leadership knows that and are eager for a continuation of that flow of investment.
- noosphr 4mo agohttps://en.wikipedia.org/wiki/Five-year_plans_of_China https://en.wikipedia.org/wiki/Five-year_plans_of_China Have a chat with deep seek about the goals of the CCP. When you run local models you run socialism.
- overfeed 4mo ago> When you run local models you run socialism. Indeed, the American proletariat need not seize the means of production through local AI. Instead, full control of AI ought to be left in the benevolent hands of the billionaire capitalist class, and the benefits will trickle down, perhaps some time after after the 100th sponsored study into UBI (which very different from socialism)
- morkalork 4mo agoThis attitude of denial and stuck in the past beliefs is exactly why the USA isn't competitive. Y'all, and your politicians leading the country, just keep telling yourselves these things and then wonder why you're getting lapped by a bunch of cut-throat capitalists.
- pjc50 4mo agoWell, they have an industrial strategy. Not exclusive to communism, places like South Korea and Singapore managed it as well.