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Topic 2: Chinese Economy in the last 40 years: 1978-2018, Topic 7: The…

- - - - Economists’ response:
        
        Free trade creates jobs at the same time that it destroys them.
        
        Workers move from the importing industries to those industries in which a country has a comparative advantage.
        
        The transition may impose hardship on some workers initially; in the long term, the country as a whole can enjoy a higher standard of living.
    - - Economists’ response
        Protecting key industries may be appropriate when there are legitimate concerns over national security.
        However, producers may exaggerate their role in national defence in order to obtain protection from foreign competition at consumers’ expense.
    - - Economists’ response:
        To apply protection successfully, the government would need to ‘pick winners’.
        If an industry will be profitable in the future, the owners of the firms should be willing to incur temporary losses in order to obtain the eventual profits.
    - - Economists’ response:
        Even if production in another country is subsidised, it is still the case that the gains to consumers from buying at a low price exceed the losses of domestic producers.
        Rather than objecting to foreign subsidies, we should thank foreign taxpayers for subsidising our consumption.
    - - Economists’ response:
        
        The threat may not work.
        
        If it doesn’t work, the country has a difficult choice.
        
        It can carry out its threat and implement the trade restriction, which would reduce its own economic welfare.
        
        Or it can back down from its threat, which would cause it to lose credibility.
- - - - Remove physical bottlenecks to trade in Eurasia
      - Foster new export markets for Chinese goods
      - Promote the renminbi’s (RMB) internationalization through billions of RMB-denominated transactions related to project payments and loans
    - - Accelerate economic growth and state-owned enterprise (SOE) profits through new infrastructure contracts
      - Prepare domestic Chinese companies for global competition through exposure to international projects and management practices
      - Pair ongoing SOE restructuring with a favourable business environment for completing contracts
      - Find new avenues for credit expansion and economic growth outside of China
    - - Project a softer image to neighbours by demonstrating leadership, generosity, and a commitment to clean energy investment
      - Showcase China-led multilateral institutions, build credibility and standing among international agencies
      - Create a foreign policy legacy for Xi Jinping’s presidency
    - - Secure strategic access to ports and air facilities through commercial investments in poor but politically friendly countries. B&R investments such as Gwadar Port in Pakistan and Hambantota port in Sri Lanka have raised alarm in India that China plans to encircle the region
      - In the course of securing projects and running supply lines, expand China’s naval and military reach in Belt and Road geographies
    - - Bring stability to China’s poorer Central and Western provinces through accelerated economic development and physical connection to the rest of China
      - Open alternative routes for oil and gas imports. Roughly 80% of China’s energy supplies today pass through the narrow Malacca Straits
- - - - BRI infrastructure and construction
      - High-tech and R&D
      - Resources
    - - Real estate, hotels, cinemas, entertainment and sports club
      - Equity investment funds or investment platforms
- - - - Despite strong trade bonds, China-Australia Relations started to deteriorate in 2016, concerns over:
      - In July 2019, the United Nations ambassadors from 22 nations, including Australia, signed a letter condemning China's mistreatment of the Uyghurs as well as its mistreatment of other minority groups, urging the Chinese government to close the Xinjiang re-education camps
      - Australia called for an independent investigation on the origins of COVID-19