Originally Posted by
EMIC
Whilst seemingly crazy to 'outsiders', maybe the phrase 'market realignment' can be used with an element of truth.
Technology stocks will regain their strength long term - maybe not the educational centres.
However, everything in China is planned with a very long term view.
Restrictions in educational pressure and costs? - Encourage people to have 2nd & 3rd children - at present put off by the costs?
Restricting teenagers to 1 hour gaming a day / week / weekend? How many western parents would love something like that?
Revisit all of this in a few years and see what 'decline' their has been in stock values........
Not sure I follow the logic here. China has been encouraging citizen to have more children (and earlier) for years now. The country is still aging rapidly.
What happened to Japan? Terrible monetary policy? Sure. Rapidly aging population? Yes! What does that sound like to you?
In what aspect of technology is China globally competitive? Software? Outside of ByteDance, what software companies have seen considerable success in foreign markets where the Chinese protectionist government isn’t propping them up? China’s core tech advantage has always been in hardware (Huawei, Xiaomi, DJI, even Anker, etc). It’s no coincidence that many of China’s globally competitive firms are in hardware and not software.
For education, I don’t really understand. Chinese education is superior to western education in many respects. However, there are many fundamental issues that limit the ability for an average Chinese worker to be hired by global firms. Very difficult to discuss this without painting a group with broad strokes.
There’s a reason the founders of New Oriental Education sent their children to the US for university.