China sets up a Free Trade Zone in Uganda, How are they going to make money off this?
The deal is 500km worth of land with it's own legislative powers. The lease term is 99 years. How is exactly does China plan to make money out of this? Will Chinese companies outsource to this FTZ? Or do they have some sort of tax set up on the FTZ and collect it? How did Britain make money off Hong Kong?
Economics - 3 Answers
Random Answers, Critics, Comments, Opinions :
1 :
What makes you think that the only China is interested in is the profit motive? Comparing Uganda to Hong Kong is a misdirection of the first water.
2 :
Hong Kong wasn't just a FTZ, it was a fully colonised area under the jurisdiction of the "Commonwealth", as it were. The Chinese refused to import opium, and under your "democratic free trade", Britain openly captured Hong Kong and the Qing government was forced to sign it to the British. The Chinese weren't able to say much about it, what with guns of every assortment and size pointed in their faces. Hong Kong acted as the British root on Chinese soil, and where Britain used as their dock for their navies, as well as untaxed trade to the Chinese. Other than that other European nations who wished to trade there were forced to pay high taxes? How the hell were you able to compare the two examples? Since the establishment of the PRC the Chinese government helped many African nations, sending expert medical teams, aid supplies and such, so China is actually in close relationship with many African nations. Contrary to CNN's blatant effort to demonise everything China does, not all things done are bad. Ohhhhh so if China established a FTZ they intended to use it for serious profits, and if they rented some other part of the world it's sure to be used for a massive nuclear missile silo, because that is all they do, right?
3 :
My guess is they will make use of the lower cost of labor there.
