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0 pointsmatthewdgreen10mo ago0 comments

On the other hand, the Shanghai stock index has been basically flat for years, despite Chinese companies rapidly growing and dominating industry after industry. Our companies have been very good at returning value to shareholders, while Chinese companies have been re-investing. There’s a very real possibility that we may come to deeply regret it.

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kccqzy10mo ago

Because China is starting from a position of weakness and catching up, it is by definition easier for them to find high ROI projects to spend money on. Just wait 10–20 years when China is thoroughly technically ahead of us, and Chinese companies will be more like American ones.

matthewdgreenOP10mo ago

China is massively investing in the entire energy generation sector, renewables, advanced nuclear, batteries, EVs, full self driving. This is the future we were supposed to be investing in, but we’re losing it. Maybe we got some share buybacks instead.

rjmunro10mo ago

The share buybacks enable and encourage investors to move their money to invest in other things for the future. That's usually a better idea than e.g. Intel, who know nothing about other wind farms, building their own.

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K0balt10mo ago

My concern is that America will become a sprawling no man’s land as the economy contracts to 20 percent of its present size. Rapid collapse is unpredictable and seems like a bad idea for a country with such a huge military presence.

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throwaway203710mo ago

I would not read too much into the lackluster performance of Chinese stock markets. Something is weird about a place with a fast growing economy, but the stock market performance is so poor.

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