Edit: just realized that businesses requesting loans to 融道网 are screened prior to being made available to public investors, so the deal flow appears to be capped by available business opportunities.
It is not a ponzi per se since money actually flows into real investments; however there is probably a "systemic" risk at the level of the Chinese economy as whole.
Funny that this excellent documentary is made by the Japanese national TV channel NHK. There is quite contrast between China and Japan today wrt. speed, risk taking and growth.
It's difficult to firmly characterize the difference between such business, but it's probably not fair to refer to every registered business as a 'startup'.
This is actually important, as, for example, the Lean Startup methodology is applicable to almost any new venture that has to deal with significant uncertainty, regardless of whether it is a high-growth venture, an SME such as a VAR, or non-tech lifestyle businesses.
A single hot-dog stand will not do something that will change the economy, create 10K jobs, attract investment, R&D etc..
Well, you never know (McDonald's was once a small new company).
But that was exactly what I was trying to say: High-growth companies with those sort of ambitions are not the only kind of startup. ALL new ventures are startups, even if they are not intended to grow much, and including quite a few that aren't even necessarily businesses at all.
"China's liaoning province admitted that it inflated GDP figures from 2011 to 2014"
So, when people are talking about 1,5 billion Chinese - have these figures have been independently confirmed, or just taken straight from the government?
Those children have no rights, and according to the state, don't exist. They can't go to school, get an official job, etc. They are born to do physical work on the fields and support their parents into their old age.
1 in 50,000 per day = 1 in ~136 per year. That sounds about right, perhaps even low.
but it's super painful to close that, even though it's a small startup and financially clean, still do not know how he could ever close that, many procedures, paperwork, financial check everything he could not supply as a small player,etc. it's just impossible to close i guess.
basically it looks to me that it's a easy-in-hard-out process.
- requires you to give up 50% to a local partner
- blocks internet access to foreign websites (thus foreign customers)
- can take away your business/assets/customers without trials
- treats foreigners as a mere entity to steal technology and clients from?
Chinese people. Don't worry, there's plenty. And they do not have subpar education, nor do they have less intellectual capacity (hell, most studies seem to conclude they have -just a little- more, on average).
> - blocks internet access to foreign websites (thus foreign customers)
I think you'll find that inbound commerce (or outbound commerce) is not all that restricted. Some movies, yes. And newspapers (do they still exist ?). That's about it. Other than that, it's not more restricted than in the west (ie. large amounts expenditures require government/irs/... approval one way or the other).
> - can take away your business/assets/customers without trials
It's not like Japan did it for 30 years before that ... By the way ... how did the US get started on it's industrial base ? Could it have been copying ?
> - treats foreigners as a mere entity to steal technology and clients from?
Again, one wonders how Europeans think about America in this area. Yep, similarly.
you seem to be wanting to argue about something which I did not even bring up. internet is not a place you start arguing with yourself.
> it's not more restricted than in the west
Yeah....you keep telling yourself that. I don't think you've actually been to China where foreigners struggles to hit youtube/facebook/google using a variety of VPN tools every day
I think I'll stop...there's too much cognitive dissonance here
And in many ways it is a plus that is not heavily regulated and dominated by a few american tech giants.
China the Hotel California of SME's
"China’s sprawling Internet censorship regime is harming the country’s economic and scientific progress, a senior official has said in a rare public rebuke of long-standing Chinese Communist Party (CCP) policy."
So they're creating alot of startups that probably are just copycats of what's existing. Not surprising considering China really isn't known for innovations.
Bike-sharing startups like MoBike: Use their app to find the nearest bike to you, scan a QR code to unlock it, and pay $0.15 for one hour. You can then ride and leave it anywhere. Admittedly, this is only possible due to v. high urban density (China has ten cities with populations greater than London and similar urban densities).
I can order a lot from the same app/interface: takeaway, cinema tickets, hotels, flights, KTV, etc. I find this more convenient than UK. Mobile payment penetration here is very high here too. Almost everyone pays for almost everything with WeChat.
Andrew Ng argues that AI progress in China is underreported due to the language barrier. I suspect this insight applies more generally to all the innovations happening here.
I've seen a few NHK documentaries about China. Kudos to them for chasing down interesting angles.
At first, it drove him crazy, and he tried to get them to stop, issue retractions, etc. But he eventually learned to roll with it. The people involved may have had excellent careers at home, but were contributing no new knowledge, and just taking up resources.
(There should have at least been a few Akio Morita's by now.)
No one will be keeping their business in China due to not being able to get the same quality else where, or because the Chinese is such nice people to do business with. So it makes sense to fund and encourage new businesses so China can start to produce their own product, and not just be a big factory (and copy machine).
And knowing China FinTech, as currently working in it, they could well believe themselves.
A broadcast message to investors: There is no China magic. There is little innovation. There is a lot of following buzzwords. There is a lot of iteration, however. Follow the companies that iterate, even on old-tech like mainframe. They're where value happens.
Many investment companies are also making small loans to traditional industries like metals, farm, and fisheries. Fascinating stuff.
You're right that the word is increasingly used to refer to SMEs that have been around years, are stable, etc. - just because it carries weight as a buzzword. But in the context of newly created businesses, that's exactly in-line with proper/original meaning.
(A better title might have been '12,000 new startups in China every day', or equally '12,000 businesses created in China every day'.)
It is no bad thing to have to start using the "high-growth" qualifier again.
I said SMEs that 'have been around years, are stable etc.' is a misuse - not newly created businesses (high growth or not).