back to article China spending $182 BEEELLION on net construction by end of 2017

Beijing has announced a $182bn programme of network infrastructure spending, supplementing the development of China's service sector over the next two and half years. The State Council, China's chief administrative authority, said the government will invest at least $69.3bn in network construction this year, which in turn will …

  1. Anonymous Coward
    Anonymous Coward

    Treading a fine line

    If your economy is based on making stuff for others, using your own people as dirt cheap labour then it's going to be tough shifting to a more service based economy.

    Simply because those same people you had been paying peanuts are now expected to go out and spend enough cash to keep the economy afloat.

    1. Anonymous Coward
      Anonymous Coward

      Re: Treading a fine line

      Any transition is somewhat painful and also (even in China) not fully within the control of government.

      However that internal transition is already somewhat under way. China has already had to start positioning itself as a reliable and only relatively cheap manufacturing location because of wage inflation and that wage inflation creates that standard of living boom which makes an internal service economy viable.

      The other aspect of this is the service export economy. China would like a bigger share of the BPO pie that India rules and reliable network connectivity is a key requirement here.

      That one is going to be tougher though, because I'm not sure people trust China to take over their back office functions without data mysteriously ending up where it shouldn't and India's giant pool of at least tolerably good english isn't so easily replicated in China.

    2. Anonymous Coward
      Anonymous Coward

      Re: Treading a fine line

      Credit where credit is due... China has brought hundreds of millions of people out of poverty.

      It's happening all over (ref. Hans Rosling), but the numbers in China are unsurprisingly huge.

  2. cybersaur
    Unhappy

    Spending on Internet infrastructure?

    Let's hope the austerity embracing capitalist countries can keep up!

  3. Anonymous Coward
    Anonymous Coward

    It's like having a high speed train...

    ...only for them to find the tunnels are bricked up.

    1. Anonymous Coward
      Anonymous Coward

      Re: It's like having a high speed train...

      no, more like having a high speed train, but at every exit/entry you have a cavity search

  4. Frank N. Stein

    Can International telecoms and investors get in on this, or is it another "China only" type of thing. They make everything we buy. Why can't we make a bunch of things for them to buy?

    1. stringyfloppy

      Because we're unwilling to make things like Soy Sauce made from Human hair, or pet food that's intentionally poisonous to pets..

      1. Kharkov
        Facepalm

        ...intentionally poisonous to pets...

        Gotta disagree with you there. It's intentionally meant to be really profitable for the maker, in the short term, which is all anyone with money to make really cares about. The poisonous bit? Sad but we can't expect little things like pets dying to get in the way of making money, can we?

    2. Medixstiff

      "Why can't we make a bunch of things for them to buy?"

      Because as Cisco has found out, China are blocking US tech companies from competing as they want to build up their own IT industry.

      So once they have copied what they want and with them having a few smart cookies themselves to reverse engineer and adapt stuff as required, they can make themselves more self sufficient.

      So they will have infrastructure, technical skills, production skills and America owing them trillions, just about all the cards they need really.

      1. Anonymous Coward
        Anonymous Coward

        "So they will have infrastructure, technical skills, production skills and America owing them trillions, just about all the cards they need really."

        Until they try and cash those T-bill IOU's and find that the dollar is worthless?

        Meanwhile as living standards rise, and Chinese people speak more international languages, more and more understand that there's alternatives to corrupt one party government*, and that's not going to pan out well for the Communist Party.

        * Yes, I know the alternative is generally an alternating arrangement of corrupt two party government, but if you've just been given a kicking by state goons for using Facebook to mock the party, then any alternative looks better.

  5. crayon

    "using your own people as dirt cheap labour"

    You seem to imply that this is a bad thing. Their wages may be dirt cheap in comparison to yours, but to them it may very well be adequate or generous even. As long as they're not being mistreated or abused then it's fine. For at least the past decade wages (in the coastal provinces and cities) have been rising at over 10% a year in line with the growth in GDP. Labour laws are updated all the time to provide increased protection for workers, eg overtime work must be paid, there's also a limit to the total amount of overtime worker can do per week, people working outside in hot weather are paid a special allowance, workers are entitled to redundancy payments etc.

    "Because we're unwilling to make things like ..."

    Nah, we only like to sell them opium.

    "Because as Cisco has found out, China are blocking US tech companies from competing as they want to build up their own IT industry."

    Because as Huawei has found out, the US are blocking Chinese tech companies from competing as they want to protect their own IT industry.

    "Until they try and cash those T-bill IOU's and find that the dollar is worthless?"

    The day the US defaults on government debt is the day the US economy will go tits up. It will mean the end of cheap credit for them and the end of the global USD hegemony and with that the end of the leverage and control that they use to bully other countries to toe the US line. So it would be an extremely foolish US government to even contemplate a default.

    "more and more understand that there's alternatives to corrupt one party government"

    The advantage of a corrupt one party government as opposed to a corrupt two party government is that in the former (as least in the case of China) they can afford to plan and implement long term coherent policies.

    "but if you've just been given a kicking by state goons for using Facebook to mock the party"

    Anybody using facebook deserves a kicking, period. But seriously, state goons have better things to do than to kick people who mock the party (those days have long gone). If you don't pose a credible threat to the government then you can mock away.

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