Huawei’s answer for the sanction of U.S

Recently, the founder of Huawei – Mr. Ren Zhengfei in an interview on Bloomberg Television admitted that the sanction of U.S on Huawei can strongly affect the production line of them.

But he also affirmed that the sanction cannot destroy the smartphone business of this brand. And in future beside of developing their own software platform, looking for new suppliers, Huawei will also get back to the market and will even “not selling their products for the U.S”.

So, what makes Huawei so confident?

Ren Zhengfei – Founder and CEO of Huawei

Market share in China

According to the South China Morning Post, after quarter I-2019 the market share of Huawei reached 34% per cent and leading the market. While other producers like Apple, Samsung and Oppo have a market share in turn: 11.5%, 1%, 19.6%. Moreover, Huawei has a plan to grow to 50% at the end of 2019.

The smartphone market of China recorded the amount of 1,1 billion mobile phone users and the market value of 66,8 billion USD with the increasing rate of over 15% each year according to Statista quarter IV-2018 report.

With the backing of the government, a high-value market share in the world’s largest mobile market (over 50% global market), and a very strong financial potential go with technology. The sanction move of U.S may activate the independence of Huawei and stimulate its innovation.

Plus, in recent years, the Chinese’s companies has succeeded in making people think back about internal technology products. Before, Chinese people always believe that local companies can only be good with low-end products or houseware products.

China’s mobile market is taking over 50% global market

Political advantages

Although claiming that he’s not the politician, but Mr. Ren Zhengfei cannot deny that the rapidly growing of Huawei have a very tight connection with the Chinese government. In the past, the very first global contracts of Huawei to build the telecom infrastructure in Africa come from orders of government.

Recently, the allegations of U.S and its allies for Huawei spying activities via their 5G telecommunications equipment also prove the thesis about the relationship between Huawei and the Chinese government. You can learn more about Huawei history on Wikipedia.

The U.S’s sanction may slow Huawei’s production down but U.S and Europe are not the only ones have a technology to create chipset. One of the biggest competitor of the U.S and its allies – Russia is still silent since U.S-China commercial war begin. Huawei in particular and the Chinese government in general may get close with Russia, and this alliance is not what U.S and its allies may like.

Moreover, according to CafeF if China closes its gate with Apple in China, this brand will lose 1/3 its global sales. And stop providing services and devices to Huawei is also a large damning to the U.S and its allies brands.

With the taut situation of the China – U.S commercial war right now, no one can make sure anything.

The U.S – China commercial war is becoming complicated these days.

Conclusion

Agree or not, the truth is that Huawei is still the biggest private company in China. The last year sales revenue reported of Huawei has over helm Alibaba and Tencent.

gree or not, the truth is that Huawei is still the biggest private company in China. The last year sales revenue reported of Huawei has over helm Alibaba and Tencent.

With all the advantage in finance, political and technology, the fall of Huawei is impossible. Not to mention that the Chinese government will not allow Huawei to fall, for millions jobs Huawei create for this country and the revenues from tax of this company.

But as I analysed in the previous article “President Trump’s sanction on Huawei and commercial war of U.S – China”, recover Huawei will be difficult and take a very long time for its present situation.

What do you think?

What is Headhunt? Differences between Headhunter / Recruiter

>> Bấm vào đây để đọc bài viết Tiếng Việt

What will you learn after reading this article?

As the title:

  1. What is Headhunt?
  2. Who is Headhunter?
  3. Who is Recruiter?
  4. Similarities/ Differences, Pros/ Cons between Headhunter & Recruiter.
  5. Other definition and information about HR industry.

What do we have inside this article?

There are many posts and articles on the Internet about Headhunt and related topic. But most of them are talking about individual topics or just briefly explain a single problem.

This article will gather knowledge and information as many as possible and put them in one article.

>> Before reading, I have some notes for you:

  1. This is a LONG article, do not scroll down if you are a lazy reading!
  2. Because I will explain very detail every topic that I mention in the article.
  3. This article is based on my own experiences and aggregate from the Internet so there will be mistakes and omissions. I will edit and upgrade this article frequently so you can follow up and reference.
  4. Inside the article are sub-contents that explain relate definitions which I cannot write all of them in the article.
  5. If you want to contribute ideas for the article, please feel free to drop a comment below. I will collect ideas and use it to upgrade the article.
  6. The last thing, I hope this article can become a handbook for newbie to lookup or reference whenever you need to find HR information.

General

In HR industry, Headhunter and Recruiter are two employees working in two completely different organizational structures.

While Headhunter working for Headhunt company, then Recruiter is company’s recruitment employee.

The relationship between Headhunt company and recruitment need company is the relationship between Agency and Client.

>> Definition of Agency and Client in HR industry

Simply, Headhunter is a third party hired to searching candidates for other companies. And Recruiter is the company’s employee who’s in charge of finding candidates for the company.

However, the final purpose of both Headhunter and Recruiter is to find the right candidates on the market.

>> Where should I start my HR career path?

Overview of the relationship between Headhunt-Company, Headhunter-Recruiter and Candidate

The relationship between Headhunt company and the company needs to hire employees is the win-win relationship (both sides have benefits).

But between Headhunter and Recruiter is a more complicate story. Sometimes it’s a partner relationship, sometimes it’s a competitor relationship.

>> Relationship between Headhunter and Recruiter

1. What is Headhunt?

Headhunt is “outsource recruitment department” hired by companies that have demand for hiring employees. Depending on the characteristics, strengths and company structure, each Headhunt company will focus on a segment of its own depth.

Headhunt companies offer a wide range of HR related services including ESS (Executive Search Selection), Retained Search, HR consulting, Training, Career Transition …

Headhunt companies call their customers Client. While companies using Headhunter service considered Headhunt company as Agency.

How many types of service a Headhunt agency have? And what are there?
>> 8 basic types of services that a Headhunt agency have

Simply, in a company, there are a lot of departments and Human Resources is one department in it.

Besides the recruitment responsibility, the HR department also do many other tasks such as check attendance, salary calculation, health insurance, social insurance, etc.

Because taking many responsibilities, the HR department is hard to optimize one single array. That’s why we have HR Consultant services and Headhunt is one in it.

>> What is HR Consultant?

So, are there differences between Headhunt companies?

The answer is YES.

Nowadays, with the rapid growing frequency of the market, go along with the demand to recruit high-level employees recruitment. There are a lot of Headhunter companies are raised.

To classify between Headhunt companies, we can divide them into Categories and Function.

  • Categories: FMCG, Manufacturing, Oil & Gas, IT, Mass Recruitment, etc.
  • Segment: Fresher -> Junior -> Senior -> Manager -> Top C (CEO, CFO, CMO,…) etc.
Example diagram distinguishes the differences of Headhunts by expertise and market

Why do companies need Headhunter while they still have Recruiter?

If there are supply there will be demand and either opposite.

Although have private recruitment department but it’s not always possible for companies to find “right person at the right time”.

Three reasons that make companies need Headhunter.

1. Save times:

Many high-level and strict requirement positions need a lot of times to plan and budget to recruit.

While working with Headhunt agency things will be easier and simpler to enterprises. The entrepreneurs only need to give a detail brief and timeline to Headhunter and let them do their professional work.

>> Basic working process between Headhunt agency and Client

2. Save money:

Although have to spend fee when using Headhunter service. But if controlled wisely and planed well. The use of the service will bring back a big save to company.

  • Knowledge: Maybe it’s sound weird when the company’s recruiters don’t have to do anything. But beside of that, recruiters will have a chance to work with professional Headhunters in multiple segments and can learn a lot from them. The same thing happens with marketer at the client side, every time attend in an agency’s pitching they can learn the way they are working, ideas.
  • Save recruitment fee: Instead of putting effort and money out to recruit or running a campaign to find candidates that the results may be uncertain. Headhunters only charge you when you find the right candidate.
  • Save project: Imagine if you were running a project urgently and needed supporter immediately, but the Department of Human Resources cannot guarantee the recruitment progress to run on time. In this case, the Headhunter service will be your saviour.

>> Finding right people can save a whole project

3. The potential of Headhunt companies.

Besides the large amount and professional staffs, what makes the power of Headhunt companies are network and database.

With a wide network of professions, multi-industrial and from candidates who have been successfully introduced good positions. Plus the number of candidates records accumulated over the years and constantly increased through searching.

As a result, Headhunt companies always get a macro view of the transition of human resources in the market and know exactly where to find the right people.

With these “weapons”, surely the potential of a Human Resources department cannot be compared to the strength of a Headhunt company.

>> Why Companies’s Leader afraid of Headhunter?

Disadvantages when enterprise use Headhunt services

Everything has the other side of the coin. Although convenient and helps solve many problems, using Headhunt service still has some disadvantages.

  • Money: Yes, it’s always the largest concern topic of the enterprises. Like I mention above, Headhunter service can only bring benefit when controlled wisely and planed well. If don’t have an accurate understanding about the service and choose the exact type of service that needs at the moment. Companies may have to pay an additional fee or waste of times but the result is not as expected.
  • Efficiency: If even the low-level and non-demanding positions cannot be undertaken by the Recruitment Department. The company should review the effectiveness and operation model of the HR department. Moreover, using Headhunt service can’t always be absolutely guaranteed. Except using the Retained Search service (which I will mention later below), it is normal to have a Headhunt “quit” from a project.
  • Dependency: Headhunt service should only be used when the company really needs human resources immediately. As a leader, you will definitely not want to pay for the HR department while still have to hire outside services all day.

Abuse of outside services also causes internal Recruiter to lose skills due to not practising regularly. And because there is no pressure for KPIs, they will not be able to develop and improve their professional experience.

2. Who is Headhunter?

Headhunter is employees of Headhunt company. The main responsibility of Headhunter is to search for candidates according to Client’s brief or request from Business Developer, Account Manager.

What are the main responsibilities of BD (Business Developer) and Account in Headhunt agency?

Headhunters are distinguished and managed according to Function and Segment.

Two common Headhunter management models

1. According to Function

Each function will correspond to an employment category that the company is serving. This will help Headhunters to focus on their strengths and not be distracted when searching for too many candidates in different positions at one.

However, if you want to advance and go far in the role of a Headhunter. You have to go through many functions and be able to handle all functions.

Diagram of the division system according to Function

As you can see from the diagram above, only when a Headhunter can handle all functions (Others) that Headhunter will able to advance to the highest position.

What interesting with this model is that the Freshers usually starts from the general function. After having enough skills they will choose a function they like or most advantage. And after mastering your function, to advance a higher position, they have to return to the original synthesis function. What an interesting loop right!

2. According to Team

In addition to the functions model, some Headhunt companies also use a self-managed team division system and have a leader reporting directly to the Manager / Director.


Diagram of the division system according to Team

Different from the function model, Headhunter will search for candidates according to the field they are assigned (sales, marketing, accountant,…). For the team model, when BD earn a contract, Headhunter will split the job and search candidates by any Client’s demand (brief).

With the team division model, the promotion path will be more difficult. Because not only need to have good performance in the headhunter role, you also need to understand the process and working methods of BD, Account, Finance, Legal to be able to be a Team Leader.

But in return, those who can be a Team Leader will often have extraordinary skills, knowledge and leadership. Which will help them go further to the “top C” positions.

Three basic service segments of Headhunter on market

The “segment” here is the candidate segment that Headhunter searching.

We have three main segments:

Diagram dividing candidate segments from low to high

In differences segments, there are differences difficulty and demand.

  • Mass Recruitment:

Is a recruitment method for a large number of candidates. Mass recruitment requires Headhunter to have candidate screening experience and speed CV rating.

Because not only have to recruit an enormous number of candidates but also has to guarantee about the quality, Mass Recruitment is suitable for those who are agile and good information capture. But in return, Mass Recruitment does not require too much about experiences and major expertise of the candidate.

  • Contingency Search:

Also know as Executive Search Selection (ESS) is the most popular Headhunt service. And also the most competitive segment of human resources on the market.

To be able to interview a candidate from Senior -> Manager beside of self-experience and skills, Headhunter also have to has the knowledge of the candidate’s working industry and understand the Client process to find the right audience.

Although the difficulty level is higher than Mass Recruitment but also the commission of Contingency Search is also much higher.

For both Mass Recruitment and Contingency Search, Client only has to pay after they hired the candidate.

  • Retained Search:

Retained Search is a Headhunter service that employers must pay a fee in advance to Headhunt company to start the contract.

Headhunter, on the other hand, must commit to finding suitable candidates for a certain period of time or follow the contractual arrangements. Retained Search is the hardest and has the highest fee in Headhunt service segment.

Because at this segment, the candidate is senior personnel from Manager -> Top C (CEO, CFO, Director, …). In order to convince the candidate, Headhunter, besides being extremely ingenious and knowledgeable for the industry, the relationship is also an indispensable factor. Because at the very first steps of access and gain candidate’s trust are already a challenge.

Binds and profits of Client / Agency when using Retained Search service

A contract of Retained Search may take from 6 months -> 1 year to be done.

Due to the bindings between the two sides, the Retained Search contract negotiation also takes a lot of time.

Binding

  • On the Agency side, they were forced to complete the project under the timeline agreement. Because with Retained Search, Headhunters are received a part of contract costs before starting searching, not like Mass Recruitment or Contingency Search – the services only charge after the Client has recruited a candidate.
  • On the Client side, they were forced to work independently with only one Agency throughout the project and prepay a fee (20-40% contract). This means that the Client must put all beliefs as well as accept their risk in the selected Headhunt Agency.

Profits

However, every effort will be rewarded with sweet result.

  • On the client side, the completed project will bring them high-quality personnel according to their needs. The person who might change the future or success of the whole company.
  • On the Agency side, when completing a “hard to swallow” project like Retained Search. In addition to having a loyal customer, reputation and prestige are things that every Agency are looking for. Plus, the service cost of a project Retained Search is also a huge revenue for the Agency.

Generally, no matter what Categories or Segment, the skills and qualities that any Headhunter needs are:

>> Traditional interview and Behavior interview

3. Who is Recruiter?

Recruiter is the one who seeks and convinces candidates to work or become members of their companies/ organizations.

Recruiter’s searching target depends on the needs and requirements of the candidate’s ability.

Unlike Headhunter, Recruiter is distinguished by categories.

Three ways to recognize a Recruiter?

Although working in the same HR industry and having the same goal of finding the best candidate in the market. But Recruiter and Headhunter are completely different in both essence and working process.

1. Working for company/ organization

Recruiter is an “internal employer” and only works for one company which pay them salary monthly.

Because of the fixed monthly salary, Recruiter’s productivity and efficiency are not comparable to Headhunter. The person whose main income comes from commission. But in return, Recruiter is the one who understands the most about work, culture and company policies.

2. Directly offer salary and decide to recruitment

Unlike Headhunter, although the appropriate candidate has been found, the final result is still decided by the Client. Except for senior or important positions. In most cases, Recruiter is the one who directly offers salaries and decides to recruit the candidate or not.

Therefore, when interviewed directly by Recruiter, you will be answered directly about the results or have a specific response time.

In addition, interviewing with Recruiter usually the last step, not the intermediary like Headhunter.

3. Working in a specialized categories

As mentioned, Headhunter is divided by function and Recruiter divided by categories.

Diagram divide Recruiter according to Categories

For easier to imagine:

  • A longtime Headhunter can recruit a senior position (A) of any industry.
  • A long-time Recruiter can recruit all positions of an industry (A).

Limitations of Recruiter

1. Do not have an overview of the market

Because of their focus on the company, most Recruiters neglect the outside market. Recruiters are very well aware of their company, culture, system and data. However, the “good” candidate has never been enough. Sometimes the suitable candidate is coming from another industry. So Recruiters should build relationships with other company’s Recruiter / HR to expand their data, relationship network and have an overview of the market.

Moreover, having a panoramic view of the market also helps Recruiter offer the salary rate more exactly. In addition, you can also build Mastermind Group for yourself.

>> What is Mastermind group?

2. Data and Network

A Recruitment department certainly cannot compare about the data potential with a Headhunt company both in quantity and quality. Plus, technology also one of the reasons make the data of Recruiter could not be equal to Headhunter. For sure, the cost of investing in a department cannot be equal to the investment cost of a company.

Another drawback of Recruiter is the network.

With Headhunter, especially in the high segment, their network not only from relationships but also from their candidates – people that keeps important positions of companies introduced by Headhunter.

In contrast, when an employee decides to quit a job, they often rarely to keep in touch with the former company HR.

3. Speed

Due to the above limitations: limited industry, data, network, technology, Recruiter’s processing and searching speed is also limited compared to Headhunter. In addition, the number of staffs is also the reason why Headhunter’s speed is faster. Compare Recruiter and Headhunter will be like comparing a “team” against an “organization”!

4. Differentiate Headhunter/Recruiter

After reading everything I wrote above, I believe you have already know the answer. Let’s synthesis information again.

Differentiates:

Pros and cons:

Conclusion

If you make it here, congratulation, you are not the lazy reading.

So, you have got the most basic pieces of knowledge to be able to understand and choose your career path in the Human Resources industry.

The world changes day by day, so it is easy to understand that the content of this article will become obsolete one day. I will continuously come back to edit this article to make it always up to date as much as possible.

In the following section, I will write about the dark corners of the human resources industry in general and Headhunt in particular. In that article, I will also summarize the sharing and practical experience of seniors in the industry.

Waiting for my “HR the untold stories” series!

Related sub-contents inside the article should be read (I’m still working on it):

  1. Definition of Agency and Client in HR industry
  2. What is HR Consultant?
  3. What are the main responsibilities of BD (Business Developer) and Account in Headhunt agency?
  4. Traditional interview and Behavior interview
  5. What is Mastermind Group?

Thank you for taking times to read the article. Please comment below to contribute to the article. Or just simply to let me know I didn’t waste my times write this article.

Good luck!

ELON MUSK IN THE MIDDLE OF TESLA’S CRISIS STORM

Closed the trading session of 21 May, Tesla’s stock has been plunged below $200/ stock, the lowest level since 2016. This means more than 1/5 market price of Tesla has been wiped out just in one month.

Let’s take an analysis of why this world’s largest electric and automatic car company ended in crisis.

CEO Elon Musk

1. Decrease in delivery

In its latest announcement, Tesla announced that the production of electric cars in the first quarter of 2019 was 77,100 units, but the number of deliveries to the buyers was only 63,000.

This means Tesla cannot deliver in time of 14,100 units and these vehicles must be stocked for delivery over the next quarter. Not ended here, the number of 63,000 units of the first quarter of 2019 delivered is also decreased 1/3 percent compared to the fourth quarter of 2018 (90,700 units).

The reasons for this decrease in delivery unit and sale revenue are because of the trouble in logistic policy of North America. Plus the strong competition from China and Europe are also causing difficulties for Tesla. Some area has recorded the growing over 600% in 2018.

Another analytics showed that the reason for Tesla’s decrease in sales revenue is because there rush in request clients to prepayment for orders before the end day of 2018 to avoid the 7,500 USD tax on each car.

The asset of billionaire Elon Musk has evaporated over 1 billion dollars after Tesla’s announcement about the decreasing amount of car’s delivered.

Over 14,100 Tesla car stocked for delivery over the next quarter

2. The deadly comments

Since Tesla calls for funding on the beginning of May.

Analysts have adjusted their forecast for this company’s stock, as recent information shows that the $ 2.7 billion capital mobilization at the beginning of the month can only help the company with enough capital for activities.

Following that, many top short sellers and influential traders also have bad comment about Tesla’s future stock price.

Max Wolfe – Co-founder of Multivariate Investment Fund said: “although the Tesla’s stock price has decreased about half of its price compared with $400 USD times, the current Tesla stock price is not too reasonable. Until now, it only shows more commitment than results that have been achieved”.

Another disadvantage information is that the automatic drive system of Tesla not very good as the company presented.

Moreover, the constantly sold out of “top” short-sellers like Whitney Tilson, David Einhorn and Jim Chanos also bring the market’s psychological of Bear toward Tesla’s stock.

The Bear market’s psychological toward Tesla’s stock

3. Elon Musk receives a subpoena for a tweet

Last month, CEO Elon Musk have to appearance at Manhattan court for his post on social media network Twitter.

This is the result of his persistent war with the U.S. Securities and Exchange Commission (SEC). This agency alleges that the billionaire has not complied with his commitment to the government for fraud trading information on last December.

The SEC claiming that Musk had not received the consent of the lawyers before posting that information. In return, the unruly CEO says this content is not important and does not need to be censored before being published.

After the mess of Uber’s CEO about speech, the investors are more careful about the CEO statements rather than technology.

The tweet of Elon Musk

4. The sanction of Huawei

Another unexpected situation happens with Tesla is the commercial war of U.S and China.

The peak of this commercial war is the sanction of president Trump with Huawei. This will narrow the penetration way into China’s market of Tesla, one of the world’s largest consumption market of electric car.

This one again breaks down the trust of investors in the brighter future for Tesla’s stock price.

Mark Tepper – founder and president of Strategic Wealth Partners, on CNBC’s “Trading Nation ” said:

“If I were to believe Tesla’s stories, with a 35% projected earnings growth rate, even at a PEG [price/earnings to growth] ratio that’s at a premium to the market, you still can’t value the stock at over $100 a share and $100 is on the very high end,” he said.

In conclusion, in the middle of the crisis storm, there will be a lot of works for CEO Elon Musk to regain the reputation of Tesla and himself along with the company value. Let’s see what this “wizard” will do to turn around the situation.

What do you think?

India election 2019

After 6-weeks long vote, today, the election of India will have the result with the strong prediction winning of Prime Minister Narendra Modi’s party. Signalling a next 5-year term of BJP (Bharatiya Janata Party – the prime minister Modi’s party).

A BJP win would be the first-time consecutive majority for a single party in more than 30 years. At the moment this article is writing, the BJP is leading the field with 292 constituencies according to India’s Election Commission. They need 272 confirmed seats to form a government. Although there are non-official announce about the election result, all the side information has confirmed that the victory of BJP is absolute.

Prime Minister Nerendra Modi

Why prime minister Modi is so loved by people although the nature of the political landscape has changed drastically over years?

1. Economic leadership

One of the most reason that makes prime minister Modi loved by people is his promise about the economy. Not just internal, but also on the world’s market.

Modi rebuild a system of companies’s bankrupt and restructure the Goods and Service Tax (GST).

The GDP of India growing form 4.7% in 2014 to 7.2% in 2017. Which increased about 53%. in just 3 years.

2. Against corruption

Modi strongly against the corruption in government system. During his term, he has put an end to the corruption in administration system, coal, and trucks. Which has made the economic slowdown and people lose there believe in the government for a long period of time.

3. Marketing

Yes, if you following up with the election campaign of Modi, his team have a very professional marketing campaign for his election.

They have website that update content very often. You can access here:
https://www.modiforpm.org

They also use famous Bollywood actors to support their campaign, which in marketing called KOL. They hold offline meetings to supporters of Modi to gathering together. They set-up Modi’s street travelling and speaking. All of these moves increase the Modi’s brand awareness rapidly.

Although there’re still a lot of things Modi cannot do during his term. But his achievements really bring India to a better position on the world’s map. And the most important thing is that his people strongly believe the prime minister is doing a good job.

What do you think?

President Trump’s sanction on Huawei and commercial war of U.S – China

Recently, the sanction of America on China’s technology brand Huawei has been officially applied. And following that is the restrict of this brand from using software and outsourcing service from American’s companies.

Following this event is a mass withdraw of American and it’s alliance countries’ companies out from China. Leaving behind a critical wound for the production economy of this country.

President Trump’s snap

Alphabet, the mother company of Google is the pioneer of the battle. On the early morning of 20 May 2019, the official announcement released by Reuter mentions that Google has cut off the contract with Huawei.

This will prevent the company’s products from access to Android update and support, Google Play and other apps provided by Google.

Continuously, many companies provide hardware and software of America and alliances also announce to cut the contract with Huawei. Which included: Samsung (Korean), ARM (England), Synopsis (America),
Mitsumi (Japan), Wetzlar (German), and a lot more. Without those companies, Huawei cannot make a smartphone and provide their telecom products which are two main business of this technology company.

The reason stems from allegations of spying activities for China government of Huawei through their products. And a series of other accusations of violating sanctions against Iran, steal US intellectual property, tax evasion and money laundering.

Not stop there, to answer China’s threat to retaliate over US sanctions. A mass amount of foreign’s companies (most are the US and its alliances) are withdrawing from China.

There are over 400 US-funded companies claiming to withdraw from China.

Apple announced to transfer iPhone production line to India. Foxcom, one of the most important partners of Apple has also fired all of its Chinese employees. Foxcom also moved its factory to India, which created more than 1 million jobs for this country.

Following US move, its alliances with over 20,000 companies are claiming to have the plan to move out from China too.

Some notable big companies are:

  • Japan: Olympus, Sumitomo, Kobe Steelt, Mitsubishi Electric, Ricoh, Omron, Epson, Kyodo News. 60% of Japan’s companies have withdrawn from China, 40% remaining are decreasing their capital.
  • Korea: Samsung, OEM.
  • Taiwan: Yue Yuen
  • Europe: Adidas, Puma

Just like a Thanos’s snap in the famous series of Marvel. With only one move, president Trump’s just nearly wipe out the economy of China and push this country faster to depression.

The “paper tiger” economic of China.

More than 728 million Chinese people live with an income of US $ 2-5 per day according to PEW research centre.

The Chinese government’s public debt has reached more than 255.7% of its GDP (according to BIS International Bank). However, the 2018 GDP report of $13,285 billion USD was simply inflated while the actual total debt was about $34,000 billion USD.

The megacity in Fushun, Liaoning – where the famous masterpiece The Ring of Life with 22 km2 wide has been abandoned without a shadow! Across the territory of China are hundreds of such metropolitan areas. Asked a Chinese citizen, he replied, “They” simply could not stop building! “They” here are the interest groups. The real estate bubble is very huge!

Freezing real estate led to a huge bad debt bubble in the nation’s financial system as organizations and individuals were engulfed in debt, overlapping debts were difficult to resolve.

Less than 24 hours after Washington officially raised $200 billion USD taxes with Chinese goods, US President Donald Trump ordered a further tax increase for all remaining goods worth more than $300 billion USD.

According to Bloomberg, China will default on this debt in 2019

Result

All of these moves of president Trump is a slap on China face, sending his message that “do not kidding with me in a commercial war”.

Although there will be a huge damage with US’s companies and its alliances when left an enormous market like China. But everyone seem like has smelled of the depression of China’s economic, it is better to stay away before it’s really come.

Soon or late, president Xi Jinping will have to concessions with the US to save his country’s economy.

But in my opinion, it’s too late for China to prevent the corruption of its economy. The sanctions of US only a drop of water overflow to activate the blow of China’s bubble.

Best thing China can do now is to minimize the damage as much as possible.

What do you think?