Tuesday 18 August 2020

China is playing with fire

The 'wolf warrior' diplomacy is seen in full bloom in the specious claim of Australian wine producers dumping wine in China. how highly priced premium wine can be dumped more so when they are giving producers better profits than they gain from sales in Australia is simply luxurious.

This is now the second of such 'policy actions' by China.

China is playing with fire by using this policy.

Everybody wants a piece of the action in China. It is a huge market and the middle class there is growing all the time albeit more slowly tin these days of corona virus.

The main problem is trading in China relies on WHO you know not what you know. This is not uncommon in developing counties. Corruption is if not rife reasonably common.
however companies can put up with this.

What they cannot put up with is the 'rules' changing overnight because of political whims.

What is the point of  being in a market when everything can change overnight?  All that time and effort has gone to waste.

The wolf warriors either do not understand the key tenets of capitalism or believe their market is so large they can do what they want.

All this could lead companies to believe the china market is simply not worth it.

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