China is a third-world poverty-stricken backwater with nuclear weapons and a large army

The most astonishing quote from Rowan Callick the other day in his article on China which I discussed here – Draggin’ China down – was this:

The consumption share of China’s economy is low today — only 39 per cent of GDP — compared with 66 per cent in the US, and it is well below the 45 per cent reached in China itself at the start of the 2000s.

The natural number among developed economies is that around 66% of output heads into consumption with the last third of the economy used to maintain our capital base and then add to it. If we had the same proportion as China, the way you would be able to tell would be because every price you would find in the shops would be double what they are now but you would have the same money income to spend. You would be poorer than our ancestors who lived in Australia during the 1920s, although our technologies are better (everyone has a mobile phone today). There is not a single thing we can learn from the Chinese about managing an economy, but there is plenty they could learn from us.

And who knows how much of their productivity is wasted in developing its armed forces? The one certainty in the world is that no one is going to attack China, so what are all those armaments for?

When we were last in China, among the strongest memories I have are of the “ghost cities” that we would occasionally pass by on the train which we could tell because there were no clothes hanging out to dry on the balconies. They are the most absurd Keynesian/Marxists in the world.

They have a great potential future, but the road they need to take would be to follow the paths taken by Taiwan, Singapore, and until recently Hong Kong. Socialist centralised control is a dead end.

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51 Responses to China is a third-world poverty-stricken backwater with nuclear weapons and a large army

  1. W Hogg

    Not that ghost cities don’t exist at all, but reporting is largely FakeNews. China builds cities and people move in after completion. Cities of 2m don’t evolve organically – they are built to spec. Schools, offices, parks, malls and usually trains. What looks empty will usually be full a year later.

    Sometimes planning is no inept, or corrupt, that something is built in a location so unusable that it sits unused for years, or potentially forever. This is certainly not the norm. Almost every rural person would happily move to the city if there was genuinely vast unoccupied housing to put them in.

    As it happens, I (like China) save 2/3 of my personal GDP. That may well be a poor choice, but their real incomes have grown 20-fold in my lifetime. Maybe much of this “investment” was wasted – as is much of our consumption. I choose not to buy a new car every 3 years and watch the trade-in value more than halve. Other people do, for some reason. If we spent 100% of GDP on consumption, that does not mean prices would magically fall by a third either.

    There are lots of things to validly criticise about China, but it’s easier to build a Singapore when the whole country can be run by a mayor.

  2. Paul

    China’s state-controlled media has bluntly warned Australia’s warships to stay out of the South China Sea or risk the “bitter pill” of confrontation.

    no one is going to attack China

    So why do they have such a big military? Why is president Xi preparing his troops telling them to prepare to die?

    President China Joe won’t come to our aid

    We have a small population, much natural resources enough to support China

    We need those defence pacts with Japan, India, Singapore

  3. chrism

    What we have is a tiny army, no nukes, no serious weapons apart from some jets,
    we need missile defence, probably nukes and nuclear powered subs and drone subs
    and we have no hypersonic weapons or defence against them
    we are what is known as a sitting duck
    we need to sell large tracts of land to US citizens so that when the Panda moves Uncle Sam sees us as a priority

  4. Bruce of Newcastle

    China thrived under Deng when they sidelined Marxism-Leninism and went pragmatic.
    Now, for reasons I don’t understand, Xi is returning to sterile Maoism.
    He’s an intelligent guy, so he must understand how catastrophic those policies are in the real world. Which implies he sees something even more catastrophic if he doesn’t do them. What? I am mystified. I see no likelihood of the CCP luminaries being strung up on lampposts, unless they make the people’s lives a misery, which is what the new strategic policies seem to lead towards.

  5. stackja

    Xi created this problem.

  6. Rabbi Putin

    Bruce, the reason is this. Most of Chinas post-60s generation are parochial xenophobe totalitarians to the highest extreme. Of all the Chinese people I meet, s the younger ones – 45 and under – who are the scariest and most brainwashed. Rahrahrah Chinar da graytes!

  7. Genghis

    Biden becomes President, China attacks Taipai

  8. Sunbird

    China knows not to commit untold trillions on government welfare obligations.
    I will only stop fearing China when they promise a blank health and welfare cheque to every citizen like Europe has and the US will shortly under Biden.

  9. Ƶĩppʯ (ȊꞪꞨV)

    Which implies he sees something even more catastrophic if he doesn’t do them. What? I am mystified.

    I think the communists are well aware at no communist state has survived intact much longer then 75 years. The marxist rot sets in, eats away at productivity and morale.

    But China is not a really communist country in any sense of the word, it is a fascist dictatorship, in the same vein as Nazis. Xi may be concerned about the ticking fuse of communist failure looming but more likely he is a megalomaniac who wants to be the most powerful man in the world.

    The fact that nobody stands up to china over its concentration camp has emboldened the pooh bear to push the envelope even further. Hard to imagine that it’s 2020 and a nation has thrown an entire population in concentration camps and nobody is doing anything about it. Granted they are ROPers, but still pooh bear is now moving on the tibetan people.

    Pooh bear isn’t going to back down, he knows, nobody is going to seriously consider attacking him.

    china is not just a backwater, it’s a corrupt, criminal infested, absolute totalitarian shithole. The CCP is the poison on the chinese bones. Time the chinese grew some balls and rid themselves of this poison before entire world has to do it by force.

  10. Mother Lode

    I remember years ago when China first started to emerge as a major economy, with the repeated announcements of double digit growth, thinking “Why would we trust China’s numbers?”

    Well I suppose there are actually ways of checking such things, such as the value of their exports as seen in the international market place. Ah, but I was naive.

    But now that I know how the GDP game is played I have a new circumspection on matters.

    So why do they have such a big military?

    Despite their airs of the being the future, they still think like they did centuries ago. In fact, it was up to only a couple of decades ago the communist government was happy to cut itself off from the world and grind their own people into the dirt as they saw fit. Perhaps foment a little conflict elsewhere by proxy as a kind of buffer. Now they see themselves as a new empire, and that means armies and sabre rattling and jingoism. A big army makes you ‘strong’. So they must have a big army. They think they will be respected as the old European powers were.

  11. Infidel Tiger King

    They have a great potential future

    No they don’t.

  12. Genghis

    Christ you guys it is all about Joe Biden. Anyone know what the Chinese have on Hunter & Joe & ??? America will do nothing whilst Joe & Karmala are in charge. At l;east Donald was an allie for Taiwan.

  13. gary

    I have thought for years Australia should have 500 nuclear missiles. Apparently the Hypersonic missiles that have been in development are soon to be tested. Get some locally designed and built nuclear warheads for them.

    Australia is clearly in a perilous state and it is time to stop mucking around and have a real military deterrent.

  14. Joanna Smythe

    chrism, we have nothing, it would seem we don’t even have Donald Trump now, the Chinese know it and that’s why they can turn the screws. What we do have is all this lovely land and resources and in the end we’ll just give it away because our politicians are a load of wimps.

  15. Name Provided

    One moment Morrison is alleging “brutal truths” about Australia’s heroes. The next, China is accusing Australian heroes of the same. Then Morrison, realising he’s really screwed up in pre-judging matters goes on the tele with confected outrage; making it clear only Australians have the right to criticise Australian soldiers. He’s been well and truly shown up for the fool that he is. The only thing remaining is the minor issue of whether any of allegations against the SAS soldiers have any relevance whatsoever. Why not ask Cosgrove why he gave the command to Australian soldiers to get the job done in a way that minimised Australian loss of life. Why not ask why utter arseholes like David Morrison were ever listened to? War is a dirty business. Time for a reality not an equality check.

  16. HGS

    So the Chinese Gov is a totalitarian shit hole, who do bad things to the people. Is this news?
    And maybe they run an inefficient joint. Are we so much better?

    We are the socialist state, not them.

    They appear to have lifted the wealth of their people, albeit from a very low base. Maybe this will slow or even stop now. Is it our business.

    The Chinese people are our largest customer base.

    How to deal with a totalitarian shit hole? Invade? Trade embargo? Shoot ourselves in the foot and make the Chinese people even poorer?

  17. Arky

    Mmmmm yes, yes.
    Consumption makes an economy great.
    Not saving and working, building an industrial base and producing.
    Stupid chinese. They should sit around on fat arses spending their grandchildren’s futures on fucking ocean cruises, and Netflix and garden furniture and blowjobs and french submarines for fifty years in the future like we do.
    Fuck me, some people just don’t get it.
    I expect better of you Kates.

  18. Arky

    Get some locally designed and built nuclear warheads for them.

    ..
    Ha ha ha ha ha ha HA HA HA HA HA.
    Yep, all those nuclear physicists our universities are putting out, lets turn them lose on that right away.
    What’s that Skippy? They’re all chinese overseas students? WhaAAAAAAT???! All our local students are graduating in sustainable crotch grooming and post heteronormative cultural sensitive panel beating history in the hope of securing pre- selection for a safe Liberal seat?
    WhaaaaaaAAAAAAAATTT???!!!

  19. Arky

    When we needed a new generation of engineers and soldiers and chemists and biologists we discovered it was a mistake to spend the last twenty years teaching young people that there was a career to be had in self portraits in crayon of them sucking themselves off.
    Oh well, too late now, eh?

  20. Arky

    At least we are world leaders in LGMGBGTi.

  21. Arky

    …and that welcome to country stuff. No one does a good welcome to country like we do.
    We’re just fucking tops.

  22. Dot

    As it happens, I (like China) save 2/3 of my personal GDP.

    China has savings of 66% of GDP?

    Yiu are taking the piss, right?

  23. Arky

    … and footy.
    We’re the best at Australian rules football.
    and, and, and, errrr other stuff, like being all laconic and Aussie and sitting in those folding chairs with the stubby holder in ’em. we designed them. I think. Maybe. Sure they are MADE in china, but we’re the ones who sit on them at the footy or next to a creek drinking tinnies and being all clever and witty and laconic and Aussie.
    We’re tops mate.

  24. Arky

    Who would you rather be, eh?
    The people who make the folding chairs with the stubby holders in some fucking useless mega factory making all the world’s shit that no one else can be bothered to make anymore because actual work is really, really hard and boring, and soooo not what we do any more snooooore.
    Or be the people who actually use the folding chair with the stubby holder to sit in and be all bonza and drinking your stubbie and being all laconic and Aussie and shit?
    It’s a no brainer, eh?
    Yay Aussie.

  25. Professor Fred Lenin

    China and NKorea are the strategic reasons Australia needs a Missile Force with Australian built missiles and nuclear capability . We need ICBM resonse missiles , aircraft and anti submarine missies and tactical nukes to respond to invaders . We cant rely on Chinas bought and paid for PaedoJoe biden helping us . We must be like Israel, small but extremely dangerous if attacked . We are the only ones who can defend ourselves . Universal Armed Forces Service Training and a strong technological warfare unit are a must . Israel is threatened a lot ,but no one is game to tackle them these days ,a strong deterrent is the best defence .

  26. Arky

    You’re from New Zealand.

    ..
    I guarantee I’ve been here longer than you.

  27. Dot

    Oh Arky quit it you sook.

    You’re right.

    Australia:

    1. Can’t build decent roads.
    2. No one else cares that we exist.
    3. We actually do not punch above our weight in sports, science, business, the arts or literature.
    4. The native trees are ugly, toxic and flammable.
    5. Our armed forces are shit, not the shit. They’re not going to get better soon either.

  28. Zulu Kilo Two Alpha

    . Our armed forces are shit, not the shit. They’re not going to get better soon either.

    Whatever happened to The “Legion Du Papa? ” The mildly alcoholic crew of heavily armed sex maniacs that used to make up the armed forces?

  29. H B Bear

    Does China have Potential Greatness?

  30. Arky

    Oh Arky quit it you sook.

    ..
    Yep, yep, yepiddidy yep yep.
    All them blue- haired chicks graduating from uni with law degrees who did all the gender and race shit in first year more than make up for factories, trades, engineers, productive businesses, hard work and discipline, and if they fail to save us there is a whole production line of young men who can lift their shirts and proudly point to the colour of their skin, after pointing out the racist teenage girls in the crowd, and if THAT fails us, we have a never ending production line of generals and police commissioners willing to step up to the plate and march in the next LGBGTMGBGT parade, as long as their are scones with real cream and jam for after.
    We’re bonza.

  31. Arky

    Of course, the beauty of the blue- haired lawyer girly thingy is: The more blue- haired lawyer girlies you produce, the more of them are doing the blue- haired lawyer- girlie things that make it impossible to do anything actually productive in the country the less you need to produce productive people and the more places open up to produce even more blue- haired lawyer girlies.
    A process that can continue until you reach the blue- haired lawyer girlie horizon.

  32. H B Bear

    Whatever happened to The “Legion Du Papa? ” The mildly alcoholic crew of heavily armed sex maniacs that used to make up the armed forces?

    They all got taxpayer funded sex change operations and went to play in the WBBL.

  33. H B Bear

    Arky – time for a Bex and a lie down.

  34. W Hogg

    As it happens, I (like China) save 2/3 of my personal GDP.

    China has savings of 66% of GDP?

    S=I according to economists, yes.

  35. Roger W

    “But China is not a really communist country in any sense of the word, it is a fascist dictatorship, in the same vein as Nazis”.
    Sorry, communism, fascism, nazism – all versions of the same thing.

  36. W Hogg

    Which implies he sees something even more catastrophic if he doesn’t do them. What? I am mystified.

    Deng said to be rich is glorious. So a few Chineeeeeeeze went out and did that. Jack Ma etc. Look who they are cracking down on, internally.

    How did that work out for Russia? A few ultra-rich oligarchs angling for political power to accelerate their oligarchiness. What could go wrong?

    Xi fears dilution of the CCP control, with the private sector becoming so big that it’s uncontrollable.

    In USA, elections are now decided by a few Big Tech oligarchs. Creepy Uncle Joe
    – m0lests kids
    – sells US foreign policy on consignment
    – strong-arms sovereign countries to avoid scrutiny of his corrupt drug-addled son
    – digitally raped a staffer
    and has Alzheimers.

    Bezos and a couple of his mates decided that not only will they not report the fact – they will cause extreme harm, even take away people’s lawful livelihoods if THEY choose to talk about it. In some cases, even being a supporter of the “wrong” party is enough for retribution.

    And when censorship, ostracism, arson or even the risk of being shot in the face in the street didn’t work, they just changed the election result.

    You think Xi hasn’t noticed? He fears the Deep State.

  37. Arky

    H B Bear
    #3676931, posted on December 1, 2020 at 6:52 pm
    Arky – time for a Bex and a lie down.

    ..
    I warned you of the coming conflict with china repeatedly over five years.
    I warned of the stupidity of abandoning manufacturing and reliance on china, and argued for years on this site with those who insisted china would become free and prosperous and that I was being “hysterical”.
    I predicted the Trump win in 2016, and Brexit.
    I predicted this year that the election would be close, and that the pumping out of millions of ballots put a Trump victory in serious doubt.
    I won’t be listened to, and by the time others start to experience the things I long seen none of us will be in a position to discuss it, never mind stop it.

  38. Dot

    S=I according to economists, yes.

    Has anyone said China’s investment share of GDP is 66%?

    It would be bullshit.

    An economist speaking, right here. 🤓

  39. stackja

    Xi PLA how good?
    Has Xi stolen enough technology?

  40. Squirrel

    I have no doubt that the virus was knowingly let loose on the world, but that may well be seen, in years to come, as a massive misjudgement which looked like a devilishly clever master-stroke at the time.

    The free world has been woken from its greed-induced slumber on China , and the idiot “wolf warriors” are massively over-playing their hand – which looks like a degree of desperation, not just the arrogance and bravado of jumped up, nouveau riche peasants with massive post-colonial chips on their shoulders.

  41. Fisky

    I warned of the stupidity of abandoning manufacturing and reliance on china, and argued for years on this site with those who insisted china would become free and prosperous and that I was being “hysterical”.

    For my own part, I have been opposing China’s nationalisation of Australian businesses since around 2010, when it first became a political issue. It’s very strange, because at the time the most fanatical supporters of Communist nationalisation were “libertarians”. They seemed to want State Owned Enterprises to control our entire economy, so long as they were foreign run, which is a really weird position for “libertarians” to stake out.

  42. Fisky

    There is no such thing as “private” investment from China. Every company over a couple dozen employees is a CCP front, run by parallel party structures with only a veneer of normal corporate governance. We all know this, but some people still want CCP front companies to buy out the entire country. The globalists desperately want to consign our illegitimate settler colony to CCP rule, and many “free market” types are fine with that.

  43. Crossie

    The one certainty in the world is that no one is going to attack China, so what are all those armaments for?

    The party officials know that but the people don’t and to keep them in place and not rebelling you give them an external bogeyman. Argentina did the same in early 80s when they got into economic and internal political strife, they started a war thinking the Brits will back down.

    The Chinese are dangerous because, unlike Argentina, they do have nuclear weapons and I don’t think the current leadership is any more sane than Iranian mullahs.

  44. Makka

    Agree Fisky. This contrived spat with China is ONLY about cornering Australia into give China concessions in their ongoing desire to buy up our country. Good relations will be conditional on us selling out. Don’t expect Biden to be supportive of our cause either .

  45. Dot

    Fisk and Makka again REEEEing for muh welfare for whites.

    Pathetic.

  46. old bloke

    China and NKorea are the strategic reasons Australia needs a Missile Force with Australian built missiles and nuclear capability . We need ICBM resonse missiles , aircraft and anti submarine missies and tactical nukes to respond to invaders .

    but, but, but… we’ve got some French subs on order, guaranteed to be here in 50 years time.

  47. Wally

    China have been pumping money into Pacific and African countries ( including Darwin and now Victoria, thanks Dan) they will need the Military to take control of these countries and their resources when they default on the loans. They already run the United Nations with the votes they have bought with these loans!

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