IND-CHI tension

Hello friends!

The border tensions between India and China are the worst they have been in several decadesMore than 20 Indian soldiers have lost their lives.Because of this,the sentiment of "boycott China has started trending again in India

To express this emotion,  some people are even throwing their Chinese TVs out of their homes While some are breaking Chinese toys.

"This is a Chinese product."

I think if we want to make this Boycott china movement successful then it is not going to happen by breaking TVs and toys We need to understand the root causes first of how Chinese Communist Party wants to dominate the world and what dirty tactics they resort to for achieving this- Economically, Politically  and Geographically Don't harbour the misconception that only India is facing such problem.

The border intrusions that China is doing in India,

China is doing a similar thing with Taiwan simultaneously

And what are the several tactics that China resorts to with other countries economically

We will talk about all of this in today's video

So that we can come up with strategies against China along with other countries

Because today, China is not just a threat for India

but poses a danger to all the democratic countries across the w

When I say" China" here, I am only referring to the Communist Party of China.

A party that has established its complete dictatorship over the people

The Chinese people are not at fault here

Come, let us see

First, we will talk about economic tactics. But I would like to begin with the basics of trade

Why would any country trade with other countries?

There could be three main reasons

First, the non availability of a certain product in your country while it is available in another country.

For example, bananas were not available in Britain, in the UK, prior to 1633

because their climate was not suitable for growing bananas

So, they would want to trade to import bananas

The second reason could be the availability of a product or service in another country, at cheaper price

as compared to your own country.

A good example of this would be the call centres in India

US companies have set up their call centres In India because its cheaper for them to do so here

as compared to the US.

The third reason could be the availability of a product or service of a better quality in another country

That is why you would want to trade with them.

So advantages of trading are very clear

Consumers will have more choices and have access to cheaper goods

Every country will be able to specialize in its own indigenous areas and be able to build better products

and this could benefit all the countries internationally

So economically its good for every country.

Infact, trading is so beneficial that a  research indicated that

for every 1% increase in the trade to GDP ratio,

 There is a 0.47% increase in the GDP to per capita ratio of that country

So, there is a clear cut relation here- trading increases the GDP of a country

But this is a very simplistic explanation and  there are many other complexities in the real world

For instance, what about developing and underdeveloped countries

that cannot develop specialization in any sector on their own?

If a country neither has a great natural resource, nor a specialization in anything

so they would not be able to export any product or service to other countries

They would only have to import

Under these circumstance,s trade will only result in losses for that country.

What can a country do in such a situation?

In such a situation several developed and developing countries levy import taxes

that are called tariffs

Taxes would have to be paid to import a product from a country abroad

This would make that product more expensive for the consumers

Imposing such taxes ensures benefit  to the local industries of the country

There could be several other reasons for imposing tariffs

For instance, if a country wants to pressurize another country regarding a geopolitical decision,

Or if a country disapproves of an economic decision of another country

So tariffs are also imposed for mounting pressure.

Let us now see how the Chinese Communist Party misuses trade and tariffs against the other countries

China joined the World Trade Organization in 2001.

Certain conditions were imposed upon China while joining the WTO

China promised to liberalize and open up its economy further

so that trade could be easily conducted between China and the other countries

But today, 20 years later,  China has opened up its economy to some extent

But speaking broadly, China has aggressively misused the WTO for its own benefit

So, what is the situation today?

You can find made in China products in almost every country across the world

This is the extent to which China exports its products abroad

As far as imports go,

the largest social media networks in the world- YouTube, Facebook, Google, Amazon

are nowhere to be found within China

China has not allowed them to enter its realm

This is a one sided trade, in a way

China allows the export of made in China products very easily

but restricts the entry of other countries within their own realm

Instead, China copied these companies and pilfered their technology

and created copycat clones of these companies within their country

Today, I-in China, Youtube is replaced by Youku, Amazon by Alibaba,  Google by Baidu and Facebook by Weibo

These are all copy cat companies that stole the entire concept and ideas and have created their clones

to prevent the other companies from reaping benefits

and to prevent the other countries from benefiting from trade

China has indulged in IP theft -Intellectual property theft- in almost every sector

No matter which country a  new technology is introduced in, clones will be developed in China

Normally it would not have been possible in  a democratic country

For instance, if a company of the UK wishes to clone the product of a  US company.

then the US company can file a case in the courts in UK

But there's no question of court cases in China

The dictator government there promotes these cloning companies and keeps them protected from these things

Infact, the rules have been twisted in China to ensure benefits to these companies

For example, according to one such rule ,if any foreign company wants to set up a  business in China,

 then they will first have to transfer their intellectual property to their Chinese partners

The European Union Commission had filed a complaint regarding this in the World Trade Organization in 2018

to highlight how China misuses these things

China forces the foreign companies to forfeit their technology to China

They would have to forfeit it for free if they wish to do business in China

It has been estimated that USA incurs a loss between 300-600 billion dollars annually

due to this pilferage by China

The second weapon of China is what is called "dumping" in economics

Dumping refers to the export of a locally made product at such ridiculously low prices

so that it would drive the local industries of that country out of business

Your market share would increase and you would gain monopoly in that industry

and you would then take control of that particular industry in that country

For instance, take the example of the toy manufacturers of India who manufacture toys at a certain cost

But Chinese companies come in and sell these toys at  much lower prices

So the consumers would prefer to buy the less expensive Chinese alternatives

And if this continued for a couple of years-

 If nobody wishes to buy the Indian toys, the Indian toy makers would be driven out of business

and the Chinese would gain monopoly over the Indian toy industry

You might wonder how China is able to manufacture goods at such low prices

that enables it to indulge in dumping

There is a simple answer to this- The Chinese government supports dumping

The Chinese government provides export subsidies to the companies

They are provided with money and subsidies to export and dump in other countries

USB sticks, calculators, Vitamin C and E, nylon cords, measuring tapes, CFL lamps

caustic soda, kitchenware, tableware, solar cells

This is a list of items that China is believed to be dumping in India

Indian government has begun a review of them

A news report of yesterday stated that China has begun dumping of a very important medicine in India

and the Indian government is considering a tax hike on it to stop the dumping

And India is not the sole country (that is facing this problem)

Investigations are currently ongoing in Australia over how China is dumping steel and aluminium in Australia

In fact, European Union has already increased the import tax on the steel that is coming in from China

Their investigation revealed how China was dumping steel in Europe and USA

So, due to the aforementioned reason and the dumping tactic, China is able to

export so much more than what it imports today

Its trade remains in surplus when compared to most other countries

The local industries of the rest of the countries are destroyed by being driven out of business

and makes the other countries dependent on itself

These are the methods used by it

So the lesson is that the Indian government should keep its eyes open and remain alert

and keep a tab of all the things that China is currently dumping in India

to raise taxes on them accordingly and stay vigilant regarding these things

A third tactic is currency manipulation

China is accused of deliberating undervaluing its currency in comparison to the US dollar

in order to maintain its cost advantage

So that the cost benefit of 30-40% is maintained whenever someone wishes to buy a made in China product

The low value of the currency that it maintains would not remain so, if viewed in the free market

So this is another accusation that is leveled against China

As a result of these reasons- the unfair trade practices, dumping, pilferage and the currency manipulation done by China

These are the reasons due to which Donald Trump had declared a trade war against China

Donald Trump had hiked the import tariffs to prevent China from harvesting these benefits

and the trade war would have caused both the countries to incur losses

I will talk about the effects of the trade war in a future video

because these effects will tell us- if we boycott China through reduced trade and increased tariffs

then what would the consequences be?

Politically, the Chinese Communist Party

is trying to exert its influence in the internal affairs of the other countries through nefarious means

A great example of this is Australia

China is trying to manipulate the people in the internal politics of Australia

It has been alleged that China made several thousand Wechat accounts

to defame and poke fun at the Australian Prime Minister

And not only this, China is accused of building their spy networks in the Australian universities

to spy on the Chinese students

According to a news report of last year, a Chinese student was studying in the University of Queensland, Australia

He participated in a protest against the Chinese government that was being held in Australia

and the Chinese government reached his family home in China

and pressurized the family to keep their son under control

and threatened them with dire consequences

This is how the Communist Party of China is threatening the parents of the students studying in Australia

Australian Strategic Policy Institute released a report last week

which revealed how China is employing covert and deceptive methods to infiltrate

the foreign political parties and the multi national companies

to topple the democratic systems all across the world

I have only spoken about the Western countries and India until now

but even the African have not been spared by China

Taking advantage of the poverty of the African countries,

China constructs highways, dams and large infrastructure projects at the expense of crores

that is loaned out to them

and China is well aware that these African countries would not be able to repay it back

and when these countries are unable to repay their loans, China buys strategic locations in these countries

It assimilates them by physically occupying them

If there is an important port, China takes over it by sending its military and then puts it to its own use

This is called "debt trap of African countries by China"

Search and read up on it. A lot of material is available regarding it

It destroys a country completely by trapping it in debt

There are several examples of this

Take the example of Zambia- a country in Africa

A 2018 report revealed that the Zambian government

was selling off the entire control of its National Electricity Company to China

because it did not have money to repay China

The biggest and the most important port in Kenya- port of Mombasa

was forfeited to China because Kenya did not have money  to repay China

Nigeria is set to become the next country to fall into the debt trap of China

A similar thing is happening with several Asian countries as well

An island in Maldives has been sold off to China completely

Hambantota is a very important, strategic port in Sri Lanka

Sri Lanka first got China to construct it

And when Sri Lanka was unable to repay China

China took up the entire port of 15,000 acres on lease for 99 years

This port has a very strategic location which is extremely close to India

China can use it for anything- for its military warships, its navy or even its army

This map shows all the areas where China has financed ports all across the world

China is questioned on the same premise over its Belt and Road initiative

(It is believed that) the road that China wants to construct through so many countries

would basically be used to lure countries into debt traps

and would then occupy their areas for its military use

Furthermore, there is no free media or opposition in the country due to the dictatorship in China

which could hold the ruling party accountable in the wake of corruption or wrong doing

This is the reason why, when the diseases like COVID 19 spread outside from their country

no body knew anything about what they had done or whether all information had been disclosed or not

There is no free media to report that

So these are the ways in which the Chinese Communist Party is exerting its influence on the rest of the world

You can see that saying "boycott China" and breaking TVs and toys would not have much of an impact

China, here, is playing the game on the next level

by trapping the countries in debt traps and by resorting to dumping

These small steps will make no difference

India would have to begin thinking on the next level to counter China

The good news is that China is against all- Australia, Europe, USA and even Africa

So, if all of these countries come together and unite against China

then there is some hope

In the next video, I will do an analysis of how we should boycott Chinese products

which would actually make an impact.

Thank you.

17-june-2020 Wednesday

This is my first writing which i dont know it will be constant or not,but still i will try to be Constant to my personal writting on this blog.

Day was good,when i got up.i was having exam from 9 am,i have completed well for exam.after exam i installed pubg mobile so that i could play with my friends,i was playing pubg lite where there were no friends i used to play alone there,but one of my friend influence me to install pubg mobile,i dont know it is right or not i dont want to get addicted let's see.

I am writing this on 12:23 pm and i am thinking that i will be consistent and write every day at night what is going on my mid per day.but i dont know that will i be regular or not but i want to be regular.

what ia stock market.

Hello friends

Come, let us talk about the share market,

What is the share market? 

Why is it in place? How does it work? 

What are its advantages and disadvantages?

And how you can invest money in it?

Let us find out more about share markets!!

Stock market, share market or equity market- all three mean the same

These are markets where you can buy or sell a company's shares.

Buying shares of a company means buying some percentage of ownership of that company

That is, you become the holder of a percentage of that company

If that company makes a profit, some percentage of that profit would also be given to you

If that company incurs a loss, a percentage of that loss would also be borne by you

Telling you an example of this on the smallest scale, presume you have to establish a start up

You have 10,000 rupees, but that's not enough

So, you go to your friend and tell him to invest another 10,000 rupees and offer him a 50-50 partnership

So, whatever your company profits in the future, 50% of it would be yours. 50% of it would be your friend's

In this case, you've given 50% of the shares to your friend in this company

The same thing happens on a larger scale in the stock market

The only difference being, instead of going to your friend, you go the entire world

 and invite them to buy shares in your company

The origin of share markets dates to around 400 years ago

Around the 1600s, there was a Dutch East India company, like the British East India company,

There was a similar company in the country of Netherlands today, known as Dutch East India company

In those times, people used to indulge in a lot of exploration using ships

The entire world map had not yet been discovered

So the companies used to send their ships to discover new lands and trade with far away places

The journey used to be of over own stock exchange

 and every country has become greatly dependent upon the stock market

Stock exchange is that place, that building where people buy and sell shares of the companies

The market can be divided into two types- The primary market and the secondary market

Primary markets is where the companies sell their shares

The companies decide what exactly would be their share prices

Although there are some regulations in this too

The companies cannot manoeuvre too much because a lot of it depends upon the demand

How much price are the people willing to pay for the company's shares

If the value of the company is 1 lakh rupees,

it sells 1 lakh of its shares and offers shares at 1 re per share

If its demand is high and a lot of people want to buy its shares,

the company would obviously be able to sell its shares for a higher price

What the companies do nowadays is decide upon a range. There's a minimum price and a maximum price

They decide to sell their shares within that range

A point to be noted here is that every share of the company has equal value

It is upon the company to decide how many of its shares it wants to make

If the total value of the company is 1 lakh, then it may make 1 lakh shares of 1 re each,

Or it may make 2 lakh shares of 50 paise each

When companies sell their shares in the share market, it never sells 100% of them

The owner always retains majority of the shares to keep possession of his decision making power

If you sell all the shares, then all the buyers of the shares would become owners of the company

Since they all become owners, they all can take decisions regarding that company

The individual who has more than 50% of the shares would be able to make decisions regarding the company

Therefore the founders of the company prefer to retain more than 50% of the shares

For example, 60% of the shares of Facebook are retained by Mark Zuckerberg

The people who have bought shares of the company can sell it to the other people

This is called the Secondary Market

where people buy and sell shares amongst themselves and trade in shares

In the Primary Market, the companies set the prices of their shares

The companies cannot control the prices of their shares in the secondary market

The share prices fluctuate depending upon the demand and supply of the shares

So the prices of the shares fluctuate depending upon the demand and supply

Almost every big country has its own stock exchange

There are two popular stock exchanges in India

One is the Bombay Stock Exchange which has around 5400 registered companies

The other is the National Stock Exchange that has 1700 registered companies

With so many countries registered in the stock exchange,

If we want to observe, overall, whether the prices of the shares of the companies are moving up or down,

How do we view this?

To measure this, some measurements have been put in place- Sensex and Nifty

Sensex shows the average trend of the top thirty companies of the Bombay Stock Exchange

averaging out, whether the shares of the companies are moving up or down

The full form of Sensex, the sensitivity index, displays the same

The number of Sensex , that it has reached 40,000 marks

The number itself means not a lot

The value of this number can be understood only upon comparison with the past numbers

Because this number has been randomly decided

They decided, at the start that the values of the shares of the thirty companies would be this

So we compile all the numbers and then say that it is 500

So, gradually, the sensex has been rising and it has reached the 40,000 mark in the past 50 years

So this shows how far up have the share prices of these 30 companies gone in these past 50 years

There is another similar index- NIFTY- National + Fifty

Nifty shows the price fluctuations of the shares of top 50 companies listed on the National Stock Exchange

If a company wants to sell its shares on the stock exchange, then this is termed as "public listing"

If a company is selling its shares for the first time, then it is called IPO- Initial Public Offering

that is, offering the shares to the public for the first time

During the days of the East India company, it was very easier to get this done

Anyone could sell the shares of their company to the public

But today, this procedure is very long and complicated, and so it should be

Because, think about it, how easy it is to scam the people

Anyone could get listed on the stock exchange with a fake company,

and exaggerate the value and achievements of its company

They could lie to the people and the people would foolishly invest in his company

He then could abscond with the money

So it has become extremely easy to scam somebody

India in its history, has been a witness to a lot of scams like these. Eg. Harshad Mehta scam

Satyam scam, they were all the same- fooling the people and getting themselves listed on the stock exchange.

collecting the money and then absconding

So as and when these scams happened, the stock exchanges realized

 that they need to make their procedures stronger and scam proof

For this the resolutions and rules were made stronger due to which there are very complicated rules today

SEBI- Security And Exchange Board of India

is a regulatory body that looks into issues like which companies should be listed on the stock exchange

and whether it is being done in the proper manner or not

If you want to do this (i.e. get listed), then you would have to fulfill the norms of SEBI

Their norms are very strict, for example,

There need to be a lot of checks and balances on the accounting of your company

At least two auditors must have had checked your company's accounting

This entire process maybe take around 3 years.

More than 50 shareholders should be pre present in the company if you want a company to be publicly listed

When you go to sell their shares but there's no demand for it amongst people

then SEBI can remove your company from the stock market list

Now, how can you invest money in the stock markets?

During the times of the East India Company, one could go to the docks where the ships departed from

and indulge in biddings and buy and sell stocks

Before the dawn of internet, one had to physically go to the Bombay Stock Exchange building to do this

However, with the internet in place you merely need three things-

 A bank account, a trading account and a DEMAT account

A bank account because you would need your money

A trading account, to allow you to trade and invest money in a company

A DEMAT account to store the stocks that you buy in a digital form

Most of the banks today have started offering a 3 in 1 account

with all three accounts encompassed within your bank account

People like us would be called retail investors, that is, common people who want to invest in the stock market

A retail investor always requires a broker

A broker is someone who brings together the buyer and seller

For us, our brokers could be our banks, a third party app or even a platform

When we invest money through brokers in the stock market,

a broker retains some money as his commission. This is called "brokerage rate"

Banks mostly charge a brokerage rate of around 1%

But 1% is a little high. That's not how much it should be

If you look properly, you would discover platforms

that charge a brokerage rate of around 0.05% or 0.1%

This brokerage rate is a disadvantage for those who want to indulge in a lot of trading of stocks

If a lot of stocks are bought and sold in a day, a lot of money would be siphoned off as brokerage fee

But if you want to invest for a long term,

then a high brokerage rate wouldn't make a lot of difference because you'd pay it only once

So, investing and trading are two different things

Investing means putting in some amount of money in the stock market and letting it stay there for some time

Trading means quickly putting in money at different places and withdrawing from some places

This all happens in quick succession

In fact trading of shares is a job in itself

There are a lot of people in our country who are traders and do this job all day long

taking out money from one share and putting it in another

taking out from one place, putting it in another and earning profit in the process

An important question that arises is whether you should invest money in the share markets?

A lot of people compare it with gambling because a lot of risk is involved in it

In my opinion it is correct to say so because this is indeed some sort of gambling

If you are not aware of the type of the company and its performance,

 the parameters of the company and its financial record

if you don't observe its history and accounting information

then, in a way, this is akin to gambling

Because you would have no idea of how the company would perform in the future

You merely listen to people saying that the company is doing well and we should invest in it in the share market,

so that's why you invest in it

You should never do this because it is extremely risky

And obviously, when there are people that do this job day in and day out,

for examples the traders, who are experts in this field and have more knowledge about the stock market

They obviously would outperform the others because they have an idea of how this all works

So, in my opinion, you should never directly invest in the share market

and instead rely on the experts

A very competent form of it is mutual funds

Because in mutual funds you don't directly decide which companies you would invest in

In mutual funds, you place your trust in experts

and let the experts decide which companies to invest in

Infact a lot of mutual funds invest in many different companies to minimise the chances of loss

For instance I've given the example of the East India company.

Investors had quickly realised that they should not invest their money in one single ship

Investing money in 5-6 of them would ensure that atleast one of them came back.