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China is negotiating with Saudi Arabia to buy 2% of Aramco shares, worth $100 billion!

zectech

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I m not happy about the crackdown on home tutoring industry policies, it hurts my business a lot, and it won't help to encourage parents to have more children, it's actually counterproductive.
Here was my post on that that I decided not to post months ago because the limit on tutoring was not a complete ban:

I don't know about this. The amount of money poured into the for profit tutoring did produce results. Sure it was unfair but it also produces some truly elite talent. So unless there's a massive increase in money for public education, those elite talent might disappear.


So is there no way now for parents who want to spend money to give their kids a leg up in class?
...I was thinking of something similar. Expensive tutoring for the rich imparts more learning on select kids, for example teaching a musical instrument to them. If your school does not produce concert pianists in the kids, rich parents hire musicians to potentially make their kids concert pianists. You can't rely on public and college education for everything. Tutors have an important role in development. So this is a poor policy, unless the state offers paid employment to the best tutors to tutor the brightest kids free of charge in the school system. This would make things even more efficient in developing talent in China. For not every rich kid can become a concert pianist. If China focuses on providing even better than top tutoring talent, the best of the best tutors to every school for kids who can excel. This would be a good idea.

simply to ban the tutoring of rich kids is a bad idea. This has to be replaced with something far better.

Some type of tier system:

Below average students get free tutoring from average teachers

Average students get free tutoring from exceptional tutors

Above Average students get free tutoring from elite tutors to make these kids the new elite educated which China needs for decades.

A merit based tutoring system is the best option that I can think of.

A form of public tutoring would lower pay for tutors since they would lose some private sector funding.

Since the state could not pay for the whole tutoring industry and to tutor every child every day. The children who excel in their tutoring, get more and longer tutoring per month, free. Those kids who are not the top talent and not benefiting greatly from the tutoring, get less tutoring. And would have to pay for more tutoring. Rich parent can also have the option to pay for extra tutoring. This is the way to democratize tutoring by letting every child to have access to free tutoring and of their choice and what they excel at. There is no need for Beijing to tutor every kid to be a violinist.

I am guessing that the CPC maybe weighed this idea and found this to be too expensive to have free access to tutoring, even limited.

Maybe when China has a domestic consumer economy that demands more goods and especially services, that Beijing would reconsider and have limited free tutoring.

Children would be graded from a 2 to 8 score.

Children who are exceptional get an 8, and children who have poorly developed skills get a 2. 8 meaning two times a week free tutoring. And 2 equal tutoring every other week. Average kids get 1 tutoring lesson a week for free. And the parents pick with discipline is taught depending on the availabity of tutors. With the kids in schools with the highest grades get first choice.
 
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Muhammed45

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I mean that Chinese want not choose between Saudi Arabia&Iran, we have always supported Palestine.
What is the reason for the Chinese people to participate in this inexplicable sectarian war? We just want to buy some oil.
The Middle East is the Arab Middle East, which has nothing to do with the Chinese.
Unlike what you think my friend, i think that this is a good thing. It will reduce American influence in the region, not that much but a little bit.

It is USA that is fighting us in middle east not the spineless Sauds. It is USA that is fighting in Yemen. A proxy war in which Sauds are American pawns. Just a hint, USA held a negotiations with Yemenis without Saudi presence. It says it all, actually Sauds are trying to get out of that swamp its USA that doesn't allow them.

All in all, it is a good news and i hope the Chinese buys it by 99% percent. This Arab Kingdom is and will be a puppet no matter to whom.
 

MH.Yang

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I m not happy about the crackdown on home tutoring industry policies, it hurts my business a lot, and it won't help to encourage parents to have more children, it's actually counterproductive.
I work in a state-owned enterprise, extending my retirement affects my interests. Although the govt explained that the extension of retirement is due to the aging population in the future, but I still think this is the little trick Xi Jinping wants to be the general secretary three times for 15 years.
 

Adonis

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Bloomberg Agency:

The Chinese sovereign fund is negotiating again to buy (2)% of Aramco's total shares
Instead of 1%, with an estimated value of about (100) billion dollars in cash..
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With Aramco allowed to open refineries and petrochemical plants in China
Storing oil in China and selling it to Asian countries..
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And Saudi Arabia is negotiating terms that preserve its sovereignty over its wealth..

https___d1e00ek4ebabms.cloudfront.net_production_4d9efe0f-4db5-487e-bb6b-1476cbb589c5.jpg



Is it because of this.....


 

MH.Yang

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Unlike what you think my friend, i think that this is a good thing. It will reduce American influence in the region, not that much but a little bit.

It is USA that is fighting us in middle east not the spineless Sauds. It is USA that is fighting in Yemen. A proxy war in which Sauds are American pawns. Just a hint, USA held a negotiations with Yemenis without Saudi presence. It says it all, actually Sauds are trying to get out of that swamp its USA that doesn't allow them.

All in all, it is a good news and i hope the Chinese buys it by 99% percent. This Arab Kingdom is and will be a puppet no matter to whom.
The EU and Russia also have great influence on Saudi Arabia. I don't think Saudi Arabia is a puppet, they're just playing balance.
The Saudis are not good at war, and they also have too much wealth. If they did not temporarily yield to the USA, they would have been destroyed.
The Chinese once succumbed to the USA for survival in times of danger, but now we are rising again.
The Chinese can rise again, and so can the Saudis.
 

The SC

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If the deal goes through:

First, this gives KSA the upper hand in the Chinese and Asian petrochemicals market, and it can become the strongest in the world.

Secondly, it gives KSA greater political, economic and military power based on Chinese cooperation and support for the consistency and stability of the most important oil resource.

Thirdly, $100 billion enters the Public Investment Fund and provides liquidity to support KSA projects
 

MH.Yang

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Is it because of this.....


No, I remind you to Google China's coal reserves.
China only needs to reopen coal mines in Shanxi Province, it is sufficient to meet domestic demand.

China has the fourth largest coal reserves in the world, and the number of coal mines is about the same as Australia. China previously closed Shanxi coal mines to balance trade and protect the environment.
 

Muhammed45

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The EU and Russia also have great influence on Saudi Arabia. I don't think Saudi Arabia is a puppet, they're just playing balance.
The Saudis are not good at war, and they also have too much wealth. If they did not temporarily yield to the USA, they would have been destroyed.
The Chinese once succumbed to the USA for survival in times of danger, but now we are rising again.
The Chinese can rise again, and so can the Saudis.
Did you just made a comparison?

Sauds can rise again, just like China rose decades ago. Your first mistake, Sauds don't need to rise, question is rise for what?
China was a western colony and a leader appeared to unite all the Chinese under one banner. He did it with cruelty but did it anyways.

People of Arabian peninsula might rise but the family of Sauds don't need to rise. You don't expect a puppet to rise, it is like saying that one day Ashraf Ghani of Afghanistan will rise again. Against whom?
 

Bouncer

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I mean that Chinese want not choose between Saudi Arabia&Iran, we have always supported Palestine.
What is the reason for the Chinese people to participate in this inexplicable sectarian war? We just want to buy some oil.
The Middle East is the Arab Middle East, which has nothing to do with the Chinese.
No I understand your point of view based on what China is doing at the moment. I am just saying that the way world is moving, in future China will soon have to choose sides whether you want to or not. Western aggression will force China's hand at this.
 

The SC

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Very good news for a win/win deal

Cash in the hands of the Saudi state, the Chinese market opened wide to KSA. And linking China economically with Saudi Arabia will reflect positively. politically and strategically.. regionally and internationally, and the news suggests Chinese concessions on the issue of preserving KSA sovereignty over oil reserves in China..

Economically, it is very good, especially with China’s pledge to transfer its purchases of oil to KSA, and the most important thing is to give it priority in their refining market because the largest purchaser of petrochemicals in the world is China.. There are also negotiations with India on different terms.. By guaranteeing these two and linking their interests with KSA's, it will not only guarantee a buyer of Saudi oil 40-50 years ahead, it will as well insure endless political and military support for KSA..

China wants to guarantee its interests with KSA, and there is nothing more than Aramco to guarantee such interests..

There are areas that Saudi Arabia still need to develop, and China is the best who will provide it with this service at the fastest and lowest costs, as well as with good returns for China.

Negotiating with Aramco is not economic but purely political for China.. And KSA also does not need to sell.. it only needs a limited investment of 20-30 years..
 
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MH.Yang

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No I understand your point of view based on what China is doing at the moment. I am just saying that the way world is moving, in future China will soon have to choose sides whether you want to or not. Western aggression will force China's hand at this.
No, China has B&R, China can bypass a lot of trouble in the Middle East, we can go to Europe through Russia. No one can force us if we don't want to.
What we want is a multipolar world, we don't need to be the next USA, so we don't need to control the Middle East.
The Middle East is the Middle East of Arabs. It has nothing to do with us for how many years they want to fight, we won't participate in things there. As long as it doesn't interfere with our buying oil.
 

zhxy

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$100 Bn for 2% stake? Does that mean Saudi Aramco is worth $5 Trillion? It is not. Closer to 2 trillion.
Also their price is at a historic high so the Chinese are buying at peak price. 2% stake means nothing in terms of bargaining power so there is no 'takeover' of weak economy.

I am a bit surprised that with China's own progress in alternative energy sector, they are willing to shell out so much for a 2% stake in a fossil fuel company.
Yes. I also feel $100 billion for 2% is too much and too risky.

China previously had a $400 billion deal with Iran. Now it's $100 billion for 2% shares. If China uses this money to buy gold, rare metals or invest in renewable energy and mining space ore, it will bring more benefits in the long run.
 

Patriot forever

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No, China has B&R, China can bypass a lot of trouble in the Middle East, we can go to Europe through Russia. No one can force us if we don't want to.
What we want is a multipolar world, we don't need to be the next USA, so we don't need to control the Middle East.
The Middle East is the Middle East of Arabs. It has nothing to do with us for how many years they want to fight, we won't participate in things there. As long as it doesn't interfere with our buying oil.
Sir can you shed some light on this topic keeping in view the petro-dollar perspective?

I see it as a work in progress to further promote share of yuan in global trade?

Chinese deal with Iran as well.

I don't think it is directed at any religion politics/conflicts but rather overall global energy market.

As the global trade transaction medium becomes more diverse/ bilateral trade deals opens to that possibility, so will the domination of US Dollar become less effective.

We saw just post covid how devastating the impact can be on global commodity prices if federal reserve injects liquidity. They can create as much money as they want as long as global trade creates demand to match and hold the value of dollar in respect to other currencies. Energy market is a huge component of global trade.
 

MH.Yang

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Sir can you shed some light on this topic keeping in view the petro-dollar perspective?

I see it as a work in progress to further promote share of yuan in global trade?

Chinese deal with Iran as well.

I don't think it is directed at any religion politics/conflicts but rather overall global energy market.

As the global trade transaction medium becomes more diverse/ bilateral trade deals opens to that possibility, so will the domination of US Dollar become less effective.

We saw just post covid how devastating the impact can be on global commodity prices if federal reserve injects liquidity. They can create as much money as they want as long as global trade creates demand to match and hold the value of dollar in respect to other currencies. Energy market is a huge component of global trade.
This is a false proposition. The Chinese government does not even allow CNY to be freely convertible. Obviously, the Chinese government does not intend to make CNY a global currency. How can a non convertible currency become a global currency? It is even impossible for other countries to use CNY as foreign exchange reserves.
China will lead the world into a multipolar era and an era of global economic integration. China will cancel the global currency and diversify its currency reserves, so as to reduce the financial risks that single currency reserve can bring.
After getting rid of the control of the USA and the dollar over the world, Arabs, Ottomans and Persians can become a pole in the world, they were also descendants of a great civilization. They are free to issue oil money. Why do the Chinese need to intervene?
 
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