SUBSIM Radio Room Forums - View Single Post - Europeans see China as greatest global threat

Trex · 04-17-08, 11:55 AM

There is no doubt that the PLA factories are trying to make a profit, but it would be silly to suggest that the PLA charges itself for, oh, repairing an aircraft engine in one of its own factories. There may be bookkeeping notes taken to provide stats on efficiency, etc, but why pay yourself for mowing your own lawn?

As to labour costs, depending on who you go to (World Bank, IMF, etc) the per capita GDP in China is about $8,000, that of the USA is about $45,000. That makes a big difference in costs whether you are making rifles or jet fighters.

As to dollar holdings, the BBC stated that the PRC’s foreign exchange holdings had topped one trillion dollars. http://news.bbc.co.uk/2/hi/business/6106280.stm To be sure, that was two years ago (too lazy to hunt further), but it seems unlikely to have dropped – indeed, it has probably risen. Given this, paying cash for even high-end armaments is no biggie, especially since the money just keeps rolling in.

Yes, there is no doubt that the PLAQ is trying to go high-tech. All the same, much of their strength remains with mass rather than sophistication. (Putting the two together has more than just the EY worried).

As you say, it is not by any means open-and-shut. I suspect as well that considerable EWAGs were included as the PRC is not particularly forthcoming with detailed figures. My main point stands, in my opinion - it is difficult to make straight-line comparisons based on such figures, at least not without a Tarot deck beside you.

04-17-08, 11:55 AM	#29
Trex Lieutenant Join Date: Feb 2008 Posts: 262 Downloads: 0 Uploads: 0	There is no doubt that the PLA factories are trying to make a profit, but it would be silly to suggest that the PLA charges itself for, oh, repairing an aircraft engine in one of its own factories. There may be bookkeeping notes taken to provide stats on efficiency, etc, but why pay yourself for mowing your own lawn? As to labour costs, depending on who you go to (World Bank, IMF, etc) the per capita GDP in China is about $8,000, that of the USA is about $45,000. That makes a big difference in costs whether you are making rifles or jet fighters. As to dollar holdings, the BBC stated that the PRC’s foreign exchange holdings had topped one trillion dollars. http://news.bbc.co.uk/2/hi/business/6106280.stm To be sure, that was two years ago (too lazy to hunt further), but it seems unlikely to have dropped – indeed, it has probably risen. Given this, paying cash for even high-end armaments is no biggie, especially since the money just keeps rolling in. Yes, there is no doubt that the PLAQ is trying to go high-tech. All the same, much of their strength remains with mass rather than sophistication. (Putting the two together has more than just the EY worried). As you say, it is not by any means open-and-shut. I suspect as well that considerable EWAGs were included as the PRC is not particularly forthcoming with detailed figures. My main point stands, in my opinion - it is difficult to make straight-line comparisons based on such figures, at least not without a Tarot deck beside you.