Skip to content

China

Dictatorships are bad. https://en.wikipedia.org/wiki/Disappearance_of_Peng_Shuai.

China has become the leading producer for many foreign delicacies like Caviar, Black truffles, matcha, foie gras, eel & Wagyu beef. Due to its vast geography & varying climates + China's industrial+tech, many products found ideal growing environment in different parts of China.

Now China produces 60% of world's caviar w/ 90% of its Kaluga caviar being exported. Using "live egg extraction technique" + ultrasounds of sturgeon, it can extract eggs 3m after anesthesia & extract each fish 8 times. Lowering px of Chinese caviar to just $150/30g.

China has also become the biggest producer of black truffle. Yunnan/Sichuan alone produced 500t out of 800t globally. Truffle pigs in China can fine truffles in mountains faster than specially trained truffle dogs.

Knowledge Sysetm

  • [ ] https://english.beijing.gov.cn/investinginbeijing/InvestmentSpecial/DigitalEconomy/PolicesAndInterpretations/202412/t20241225_3973328.html
  • [ ] https://english.beijing.gov.cn/government/policytoolkittwo/index.html
  • [ ] https://english.beijing.gov.cn/government/policytoolkittwo/INV_Policy_Text/202505/t20250515_4089823.html

Foreign Investment Incentive System Structure

  • How this incetnive system was born - adn evolve? What this incentive sysetm - (plahed) or emernged? Y

  • How should we farme the FI measures in china?

  • Different Types of Firms -> Diferent Activites - Control Flexibily by the Governemnt.

  • Equity Joint Venture (EJV)
  • Cooperative Joint Venture (CJV)
  • Wholly Foreign-Owned Enterprise (WFOE)
  • Variable Interest Entity (VIE)
  • Strategic Minority Foreign Investment -
  • Control the choice set, not the choice
  • Incentive Compatibility: Firm Makes Money; China Improve It's Technical Mastery.
  • Strategic Ambiguity as a Feature, Not a Bug
  • Dynamic, Not Static, Optimization

China’s FDI regime is not primarily about capital attraction.

It is about:

  • Capability extraction
  • Technology domestication
  • Control of strategic assets
  • Dynamic tightening after learning is achieved

QA

What is the Role of Joint Ventures in Firm Capability Development and Potential? Which types of techniques can diffuse through this method? What are the limits of Joint-Venture?

...

References