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Cake day: January 29th, 2025

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  • They force the government to levy taxes and tariffs and ban competition to protect their established non-competitive products and profit margins.

    Even if we put aside that Chinese manufacturers produce often under slave-like conditions, the vast majority of companies are not fit for market without massive state subsidies and additional support that are much higher than anything in West.

    A good way to observe this is, for example, when we compare Chinese and Western car manufacturers which are producing within China. Even in the country, Chinese car firms receive a lot more direct state aid by all comparative standards. Between 2019 and 2002, Tesla’s reported state aid was 2% of net income, and no grants since 2023 (European car markers’ grants were even lower than Tesla’s), while BYD’s subsidy income were 265 of net income in 2024 and 35% in 2025.

    The gap between Western and Chinese producers is much larger if Western firms produce at home.

    Another way Chinese carmakers lower costs: they ‘outsource’ costs to their suppliers. BYD has even created its own proprietary supply chain finance system called the “D-chain,” through which it issues “e-debt certificates" which means the company stands outside the law (there is a Negotiable Instruments Law in China in principle, but it doesn’t matter to all companies). According to company reports for the years 2023 and 2024, BYD took an average of 155 days to pay suppliers, Geely 149 days, and Leapmotor even 225 days.

    Western carmakers paid their suppliers much sooner - Tesla withing 60 days, Volkswagen in 43 days, and 41 for Toyota in 41 days.

    Chinese companies also benefit from below-market borowings (below the China Prime Loan Rate), and they receive preferential access to cheap land to build their factories (especially if and when there are good connections to the party).

    And this is a TINY sample of what happens. Comparing Western and Chinese subsidies doesn’t make sense. It must clearly be said that under Western subsidy schemes, Chinese carmakers would have long been bankrupt.







  • What’s the difference between U.S. and Chinese AI for those ‘with eyes willing to see’?

    The sad answer is that Europe and others need to collaborate and develop their own tech. The U.S. and Chinese AI is the same useless crap, with China’s even more (intentionally) biased.

    But this article is about China, not the U.S. If you engage further in whataboutism and conveying cheap Chinese propaganda narratives, I stop this conversation.
























  • There is a war in Ukraine after Russia invaded the country. China has been playing war games around Taiwan while Beijing has been increasing its aggression practically in the entire South China Sea. It’s noteworthy that the Chinese government has been increasing its military budgets in the last 30 years which is another threat to its neighbours in the region.

    It’s clearly said in the report, and the conclusions are very clear and reasonably.



  • The same outlet reported yesterday:

    The ‘Chinese Dream’ is shrinking for Gen Z

    … Beijing reported [its] economy hit its 5% GDP growth target [in 2025. Exports held up. Industrial output stayed resilient …

    Many young Chinese millennials and Gen Zers, who are trading down on everything from fashion to career ambition, are gripped in a deep sense of morass. The stepping stones to a solid, middle-class life seem to be sinking away, and the promise of long-term financial stability is crumbling as the housing market does the same.

    “Even though a recession has not taken place, a lot of the symptoms of recession have been experienced by this young generation, particularly around unemployment and underemployment,” [says] Zak Dychtwald, who runs consumer research firm Young China Group …

    Youth unemployment is high — around 17% — and that number also doesn’t capture the growing number of graduates taking jobs they never expected to need. Last year, Chinese social media lit up after a Ph.D. graduate posted about turning to food delivery work. Around the same time, a gas company announced it was recruiting graduates and postgraduates as meter readers.

    “College education has become much more attainable for young adults,” said Zhou Yun, an assistant professor of sociology at the University of Michigan. “Yet the returns to college education have not kept pace.”

    You’ll find many of similar stories about China. It seems the Chinese students and graduates are unfortunately chasing whatever job they can get as the economy has been loosing spin for a long time. It’s not that great as their government wants to make the world believe.





  • … since the outbreak of the war in Israel, Beijing has classified Israel as a “high-risk area” and imposed a ban on any new Chinese investments in the country.

    The South China Morning Post, a Hong Kong-based Chinese propaganda outlet, published just last week that China, Israel continue to collaborate in science and tech despite unrest in Gaza.

    While Beijing supports Palestine and has a fractious relationship with Tel Aviv’s closest ally, cutting-edge innovations keep them together.

    In a report published just now in February 2026, Lloyd’s Bank explicitly says,

    Chinese investment in Israel has grown rapidly in recent years, particularly in software, IT services and consumer electronics.

    Trade between China and Israel is also at an all-time high since the outbreak of the pandemic, and this hasn’t notably changed since the Gaza war (with Chinese exports to Israel have always been higher than imports from Israel, so Israel runs a trade deficit with China).

    It’s important to note that this Chinese Ballet Vision fund cites losses of its investment since the outbreak of the war in Gaza, and it seems this is the real issue here. China is heavily investing and trading with Israel. Nothing has changed.

    This is not much more than propaganda, the numbers paint a different picture. China-Israel business ties are stronger than ever, despite Gaza.

    [Edit typo.]


  • … since the outbreak of the war in Israel, Beijing has classified Israel as a “high-risk area” and imposed a ban on any new Chinese investments in the country.

    The South China Morning Post, a Hong Kong-based Chinese propaganda outlet, published just last week that China, Israel continue to collaborate in science and tech despite unrest in Gaza.

    While Beijing supports Palestine and has a fractious relationship with Tel Aviv’s closest ally, cutting-edge innovations keep them together.

    In a report published just now in February 2026, Lloyd’s Bank explicitly says,

    Chinese investment in Israel has grown rapidly in recent years, particularly in software, IT services and consumer electronics.

    Trade between China and Israel is also at an all-time high since the outbreak of the pandemic, and this hasn’t notably changed since the Gaza war (with Chinese exports to Israel have always been higher than imports from Israel, so Israel runs a trade deficit with China).

    It’s important to note that this Chinese Ballet Vision fund cites losses of its investment since the outbreak of the war in Gaza, and it seems this is the real issue here. China is heavily investing and trading with Israel. Nothing has changed.

    This is not much more than propaganda, the numbers paint a different picture. China-Israel business ties are stronger than ever, despite Gaza.

    [Edit typo.]