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There are countless others. Now that the West is waking up to this game, the inflow of capital to China is slowing. That seems unlikely; it is too far entrenched to be uprooted quickly.
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But the freedom of looiing accorded to Chinese companies and executives is already being dramatically curtailed as Xi Jinping asserts explicit political control over the economy. Western competitors in the global market should finally recognize that their Chinese competitors are both at the mercy of the CCP and backed by instruments of state power.
The central conceit of Chinese relations with the West has been that while political authority looking for noon monday monopolized by the CCP, China has a free-market economic system, looikng should be treated as a free-market trading partner.
This was always a convenient fiction. But whatever distance might have existed in the past between economic and ffor activity in China has disappeared as the party takes control of nominally independent companies.
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A of Chinese state-backed companies, including some in strategically important industries, have begun to default on their debt obligations. Will international creditors be allowed to claim the assets?
Will the equity holders — in many cases the CCP or regional and local governments in China — be wiped out? If these companies are bailed out by the government, will domestic and foreign debt-holders be treated equally?
Or will foreign creditors find their assets wiped out, while these companies continue operating under nominally new ownership and perhaps a new corporate brand? It seems a looking for noon monday bet that foreign debts will be repudiated, either explicitly or implicitly. What was ly commercial debt now has the risks that are typically associated with sovereign debt, which can be canceled by government fiat.
In short, a wave of write-downs is coming for Western businesses invested in China. Western businesses are not competitors operating in a free market in the PRC.
As we wrote in a recent article, the CCP consistently treats western firms as adversaries to the sovereign interests of the PRC and uses all the tools at its disposal to target them. To round out the team, sportsman Gary Hurley handles golf and fishing equipment and all things mechanical. From those early beginnings, the store has grown to more than dedicated volunteers, working 6 days a week, processing, cleaning and pricing gently used goods for re-sale to the public.
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Revenue generated by store sales is contributed each year to more than local schools and charitable service organizations throughout Green Valley, Sahuarita and the Santa Cruz Valley, and the demand continues to grow. The Fair features a parade of more than entries, including bands, floats, horses, marching units and more. The White Elephant is proud to be able to contribute money right back to our local communities through our granting process.
So whether you are a volunteer, a donor, or a shopper, your contributions to the White Elephant are so appreciated by this organization. From all of us here at the White Elephant, thank you for your continued support.