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.
Saturday, August 28, 2010
Saturday, August 14, 2010
How does china plan to make money off this?
How does china plan to make money off this?
China is setting up a special economic zone in Uganda. China gets legislative power. I'm wondering how China want's to make money off this? I assume it going to be like Hong Kong under British rule?
Economics - 2 Answers
Random Answers, Critics, Comments, Opinions :
1 :
Chinese are after the mineral resources of Uganda.
2 :
i think they are using their land to grow rice and pay the labors decent amount of money. Sort of like giving them jobs and earn not like UN just throws in millions of money into the govt that goes into fat cats pockets
China is setting up a special economic zone in Uganda. China gets legislative power. I'm wondering how China want's to make money off this? I assume it going to be like Hong Kong under British rule?
Economics - 2 Answers
Random Answers, Critics, Comments, Opinions :
1 :
Chinese are after the mineral resources of Uganda.
2 :
i think they are using their land to grow rice and pay the labors decent amount of money. Sort of like giving them jobs and earn not like UN just throws in millions of money into the govt that goes into fat cats pockets
Saturday, August 7, 2010
What are the main sources of income of China? How does China make money?
What are the main sources of income of China? How does China make money?
I need details about China's economy please
Economics - 2 Answers
Random Answers, Critics, Comments, Opinions :
1 :
China is export oriented, but it also has a lot of growth in the construction industry http://www.state.gov/r/pa/ei/bgn/18902.htm http://www.economywatch.com/world_economy/china/structure-of-economy.html
2 :
China is expanding into areas that were previously rural and increasing the value of it's infrastructure in areas that are urban. So the answer would be expansion.
I need details about China's economy please
Economics - 2 Answers
Random Answers, Critics, Comments, Opinions :
1 :
China is export oriented, but it also has a lot of growth in the construction industry http://www.state.gov/r/pa/ei/bgn/18902.htm http://www.economywatch.com/world_economy/china/structure-of-economy.html
2 :
China is expanding into areas that were previously rural and increasing the value of it's infrastructure in areas that are urban. So the answer would be expansion.
Sunday, August 1, 2010
How does china make money off this?
How does china make money off this?
China just set up it's own special economic zone in uganda. China gets legislative rights in the zone. How exactly is that going to make them money? Taxes?
Economics - 3 Answers
Random Answers, Critics, Comments, Opinions :
1 :
The special economic zone was set up by Uganda in recognition that private enterprise requires a number of laws and rules be in place to protect the rights of investors so that they are willing to invest. Often countries that are not yet ready to implement laws across the entire country that are sufficient to encourage private investment, are willing to do so in a designated zone. The fact that China gets legislative rights in the zone (something I am not aware of) would mean that China gets to implement the specific laws that they find most conducive to doing business, so I think that we can assume that the laws will be favorable in many regards. Even if Uganda retained a taxing authority outside the legislative rights, perhaps by veto rights, it would be great for China to be able to set up a system of laws and an enforcement mechanism that it was familiar with and felt was appropriate for optimizing their investments in the region.
2 :
China gets cheap and reliable supply of minerals or other raw materials from that country.
3 :
Look at Hong Kong during british rule. It's the ultimate way to build an empire. They will tax them and probably build a military base there.
China just set up it's own special economic zone in uganda. China gets legislative rights in the zone. How exactly is that going to make them money? Taxes?
Economics - 3 Answers
Random Answers, Critics, Comments, Opinions :
1 :
The special economic zone was set up by Uganda in recognition that private enterprise requires a number of laws and rules be in place to protect the rights of investors so that they are willing to invest. Often countries that are not yet ready to implement laws across the entire country that are sufficient to encourage private investment, are willing to do so in a designated zone. The fact that China gets legislative rights in the zone (something I am not aware of) would mean that China gets to implement the specific laws that they find most conducive to doing business, so I think that we can assume that the laws will be favorable in many regards. Even if Uganda retained a taxing authority outside the legislative rights, perhaps by veto rights, it would be great for China to be able to set up a system of laws and an enforcement mechanism that it was familiar with and felt was appropriate for optimizing their investments in the region.
2 :
China gets cheap and reliable supply of minerals or other raw materials from that country.
3 :
Look at Hong Kong during british rule. It's the ultimate way to build an empire. They will tax them and probably build a military base there.
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