Tag Archives: wall street

Can’t Touch This! America FANG v. China BATX

The Economist magazine has considered four measures of Chinese corporate unfairness, using data from Morgan Stanley and Bloomberg. The first is the weight of China in the foreign sales that American firms bring in. It stands at 15%; if it was in line with China’s share of world GDP, it would be 20%. This shortfall amounts to a small 1% of American firms’ global sales (both foreign and domestic). America Inc is similarly underweight in the rest of Asia, but there is much less fighting talk about South Korea or Japan.

The second test is whether there is parity in the commercial relationship. Firms based in China make sales to America almost exclusively through goods exports, which were worth $506bn last year. American companies make their sales to China both through exports and through their subsidiaries there, which together delivered about $450bn-500bn in revenue. Again, there is not much of a gap. American firms’ aggregate market share in China, of 6%, is almost double Chinese firms’ share in America, based on the sales of all listed firms.

The third yardstick is whether American firms underperform other multinationals and local firms. In some cases failure is not China-specific. Walmart has had a tough time in China, but has also struggled in Brazil and Britain. Uber sold out to a competitor in China, but has done the same in South-East Asia. American consumer and industrial blue chips are typically of a similar scale in China to their nearest rivals. Thus the sales of Boeing and Airbus, Nike and Adidas, and General Electric and Siemens are all broadly in line with each other. Where America has a comparative advantage—tech—it leads (Facebook, Amazon, Netflix, Google (FANG)). Over half of USA Inc’s sales in China are from tech firms, led by Apple, Intel and Qualcomm. Overall, American firms outperform. For the top 50 that reveal data, sales in China have risen at a compound annual rate of 12% since 2012. That is higher than local firms (9%) and European ones (5%).

The final measure is whether American firms are shut out of some sectors. This is important as China shifts towards services and as the smartphone market, a goldmine, matures. The answer is clearly “yes”. Alphabet, Facebook and Netflix are nowhere, and Wall Street firms are all but excluded from the mainland. Chinese firms, however, can make a similar complaint. The market share of all foreign firms (incuding China’s Baidu, Alibaba,Tencent and Xiaomi popularly called BATX) in Silicon Valley’s software and internet activities, and on Wall Street, is probably below 20%. America’s national-security rules, thickets of regulation, lobbying culture and political climate make it inconceivable that a Chinese firm could play a big role in the internet or in finance there.

Far-sighted bosses know their stance on China must reflect a balanced assessment, not a delusional vision of globalisation in which anything less than a triumph is considered a travesty. But their voices are being drowned out. The shift of the business establishment to hawkishness on China has probably emboldened the White House and also led the Treasury and Department of Commerce to be more combative. Most big firms are blasé about tariffs; they can pass on the cost to clients. Few export lots to China. But soon China will run out of American imports to subject to retaliatory tariffs; in a tit-for-tar war, beating up American firms’ Chinese subsidiaries is a logical next step. USA Inc’s Sino-strop would then end up enabling the opposite of what it wants.

Excerpts from Raging Against Beijing, Economist,  June 30, 2018, at 58

One More Reason to Occupy Nigeria: the severe environmental damage

The Nigerian cell of the Anonymous collective has continued its ongoing campaign against government corruption issuing a statement listing its demands.  Sent to the International Business Times on Tuesday via email the statement has since been re-posted on Pastebin – indicating that it is likely authentic.  In it the collective promised to continue mounting its ongoing series of cyber assaults against the Nigerian government should its demands for “justice” and an end to violence against protesters not be met. Specifically Anonymous Nigeria’s demands were six-fold:

“WE DEMAND THAT YOU CUT THE COST OF GOVERNMENT BY 60%

“WE DEMAND THAT YOU ELIMINATE WASTE IN GOVERNMENT

“WE DEMAND THAT YOU TACKLE CORRUPTION AND POLITICAL PATRONAGE

“WE DEMAND THAT YOU REDUCE THE PUMP PRICE OF FUEL TO N65

“WE DEMAND THAT YOU FIND OUT AND PROSECUTE MEMBERS OF THE FUEL CABAL,” read Anonymous’ statement. Later adding the final demand:

“WE DEMAND AN IMMEDIATE END TO THE KILLING OF INNOCENT PROTESTERS”

The statement follows the collective’s unified and ongoing support of all Occupy movements. Though the root cause of the Occupy movement is difficult to discern, the earliest call-to-arms stemmed from a blog post in Adbusters magazine.  Inspired by the Arab Spring and Spain’s Democracia real YA platform, Adbusters called for all like-minded individuals unhappy with the current global political and economic system to march on Wall Street and mount an ongoing sit-in-protest.

The post quickly captured the imagination of several groups, leading to the #occupywallstreet hash-tag trending on Twitter. The movement gained significant mainstream attention outside of Adbusters’ native U.S. base when the Anonymous collective took notice and publicly voiced its support.  Reiterating Adbusters’ post, Anonymous issued the above video on its AnonOps website citing a series of undisclosed actions perpetrated by “corrupt” governments and corporations as its motivation for the sit-in.  Since Adbusters’ and Anonymous’ call-to-arms the Occupy movement has spread to cities across the world, seeing citizens pitch tents in public squares and mount sit-in-protests against the world’s current political and economic systems. In all the campaigns Anonymous has openly voiced its support for the movement, publicising its live video feeds and reporting any incidents of police violence against protesters.

The Nigerian cell of Anonymous has followed this pattern, publicly voicing its support and reporting any incidents of violence against Occupy protesters. The group has already taken credit for identifying the deaths of in-excess of 10 participants in the Occupy Nigeria protest. Ending its statement Anonymous Nigeria promised it would continue its “peaceful” protest – many Anons list identify themselves as pacifists and are hostile to any and all acts of physical violence

Alastair Stevenson, Occupy Nigeria: Anonymous Demand End to Government Corruption, Jan. 11, 2012