Prime Minister Scott Morrison has vowed not to bow to China, after several cyber attacks on Australian institutions last week are believed to have originated from China.
However, in the wake of a Chinese surveillance ship spying on Aussie troops, Morrison defended criticisms that he was turning Australia into China and stated that it was necessary to import Chinese policies to know how to beat Chinese subversion.
“Well, they’ve essentially already got two states and a lot of our infrastructure so we’re halfway there. As soon as we get these vaccine passports and ID for social media accounts in, then we’ll have the social credit system too which we’re also nearly there with the QR codes. So we’ll know how to beat that as well,” Morrison told a packed press conference.
“We’ve arranged our quarantine model around the prison camps in Xinjiang and they’ve agreed to build our trains for us, so it’s a win-win. I’m also in the process of putting Australian political dissidents on lists after the protests last weekend.”
Despite criticism that his plan was fucking retarded and a blatant attempt to bring in globalist communism, Morrison outlined the economic benefits of such a national defence plan.
“China is an important trading partner and it’s important that we trade Australian freedoms for Chinese security. So, it’s important we model our society off of theirs so we know how to defeat it and benefit from it.”
This being a markets blog of some description, I might bring to readers’ attention what is going on in China markets:
over the weekend the CCP effectively changed tuition companies in China to ‘not-for-profits’. It has wiped out the market value – more or less – of domestic tuition companies. For those who do not know, this is a huge business in China given the focus on competitive education – namely test taking – in the mainland. The CCP’s reason is to stop the competition and expense of raising kids in China, which is a key reason for the population decline and ageing population there. It’s hard not to disagree with the sentiment of the CCP here because of the stress on the poor kids. But the reality will be it’ll just force everything into the blackmarket. And nothing really will change given the long-standing sentiment towards education (which really goes back at least 2000 years to confucian times).
The global market’s reaction has been brutal. With the stroke of a pen the CCP destroyed investor capital. And it has to be considered – which sector of the economy will be next. We already had Didi a few weeks back. And this time last year, thereabouts, they clamped down on Ant (the finance arm of Alibaba), striking out its IPO, which was touted as going to be the biggest ever. The risk premium on investing in China has just skyrocketed.
Thanks Pensum.
My reaction is “Good fucking on them!”.
At least the fucken dirty commies have the guts to regulate things even if it means destroying the paper value of “assets”.
Nobody else has seems to the stones to do this.
I am with Peachy, good on ‘em. Going after big tech is something that most Western governments are too gutless to do. Increasingly huge troves of our data is being held by a few corporations who do not necessarily have the best intentions with our data. The primary reason for me giving up social media has been the abuse of data of these companies. Social media is a core pillar that will bring down our society.
I do think that a little nationalisation of Chinese owned assets in Australia would not go amiss, would be a good way for the the lords of EZFKA to acquire assets to sell in order to pay for the Whuflu stimulus.
The risk premium has always been there, but corporations were blinded by profit potential.
All corporations in China, even the foreign ones, exist solely by the graces of the CCP. They can, and do, confiscate companies all the time. Or teach ‘non-compliant’ directors/owners a lesson by disappearing them for a while.
Also contracts are more considered guidelines and are up for interpretation/re-negotiation after signing.
And companies are not audited, so whatever numbers they present are questionable at best.
With all this and then the fact that when investing in China you’re allowed to put money into the country but can’t take it out should be huge red flags for companies to give China a huge pass.
Where is the due diligence? Oh yeah, but dollars…
Fuck ‘m