WI China Nationalizes all factories in China

What would happen if China nationalized all factory and non chinese held assets in china, and no they do not give compensation for this.
 
Why would it do that?

China is currently trying to -privatize- state held assets.

If by privatize you mean held by corporations whose ultimate main investor is the Chinese military then yes it is trying to privatize.

In reality what the Chinese do is tell corporations, such as GM "Sure, you can build in China; by the way you'll partner with a Chinese "corporation" (ie- the Chinese military) and they'll get to see your plans and intellectual property and you'll train our people". They don't need to privatize any factories, the factories are already partly owned by the Chinese government.
 
If by privatize you mean held by corporations whose ultimate main investor is the Chinese military then yes it is trying to privatize.
To be fair, the military itself was told to give up all business interests in the 1990s and many generals were jailed for trying to evade the ban. Many of these "privatized" corporations at the strategic level are in fact controlled by various holding companies which are controlled by various levels of government and are managed by people who happen to have Party experience.

In reality what the Chinese do is tell corporations, such as GM "Sure, you can build in China; by the way you'll partner with a Chinese "corporation" (ie- the Chinese military) and they'll get to see your plans and intellectual property and you'll train our people". They don't need to privatize any factories, the factories are already partly owned by the Chinese government.
Same tactic used by the Japanese and South Korean governments - market access in exchange for technology transfers.

Hardliners coming to power, a burst of nationalism, ect.
All of these so-called hardliners have vested interests in private property (their extended family having mansions and shareholdings/directorships of major companies, their supporters having the same interests, etc). They also know that nationalism needs to be controlled - so anti-Japanese protests are okay, as long as Japanese-owned businesses where their friends own a stake aren't attacked.

In any case, China now has a huge middle class which is always a force for conservatism (as in cautious towards change). Why *should* a family of four with an apartment and a car and who vacationed in Thailand last winter support a dinosaur who wants to bring back the 70s? They may not have the chance to vote, but they have other ways to make their thoughts heard.
 

RousseauX

Donor
If by privatize you mean held by corporations whose ultimate main investor is the Chinese military then yes it is trying to privatize.

In reality what the Chinese do is tell corporations, such as GM "Sure, you can build in China; by the way you'll partner with a Chinese "corporation" (ie- the Chinese military) and they'll get to see your plans and intellectual property and you'll train our people". They don't need to privatize any factories, the factories are already partly owned by the Chinese government.

There's a pretty big difference between the government as an investor and the government owning a corporation, namely that an investor means that the corporation could be and are traded publicly and those corporations are going to be partially privately owned.
 
There's a pretty big difference between the government as an investor and the government owning a corporation, namely that an investor means that the corporation could be and are traded publicly and those corporations are going to be partially privately owned.

Chery, a Chinese automobile company, is state owned. Not just the state as an investor.
 
Why would it do that?

China is currently trying to -privatize- state held assets.

One thing doesn't necessarily exclude another. They just could resell (or even give away, whatever) the seized foreign assets to the more loyal and controllable Chinese nationals.
As for why, they may go full Putin style: "F*** economy, I want muh POWAH!!!111" And of course they might try, switching to supplying the enormous and barely tapped internal market, if/when the offended side pushes for an embargo or prohibitive tariffs on Chinese goods.
 
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One thing doesn't necessarily exclude another. They just could resell (or even give away, whatever) the seized foreign assets to the more loyal and controllable Chinese nationals.
As for why, they may go full Putin style: "F*** economy, I want muh POWAH!!!111" And of course they might try, switching to supplying the enormous and barely tapped internal market, if/when the offended side pushes for an embargo or prohibitive tariffs on Chinese goods.

There is no faction in the Chinese leadership who would want to try that. Furthermore an oligarchy usually doesn't go through drastic policy changes.
 
They could do command capitalism to get rid of oligarchs

Recent history such as in Egypt proves in developing countries this move actually generates growth

Now for China that's a misnomer because there's currently rapid growth and they wouldnt get any population pressures settled from new Maoism
 
Maybe if Maoist hardliners came to power but at the moment State Capitalism is more popular and profitable you would need a collapse of the current system for nationalization to be possible
 
Everybody pulls out of China and invests in India instead. China hits an economic depression, which is quickly followed by civil disorder and maybe even civil war.
 
China descends into civil war as these "hardliners" turn the clock back 45 years at the expense of millions of angry citizens. Much of the party's legitmacy comes with prosperity, turn that around and make it look like you're going backwards, I doubt even the PLA will back you.
 
They could do command capitalism to get rid of oligarchs

Recent history such as in Egypt proves in developing countries this move actually generates growth

Now for China that's a misnomer because there's currently rapid growth and they wouldnt get any population pressures settled from new Maoism

"Command capitalism" by which you mean transfer wealth from one group of oligarchs to another? Because that's what happened in Egypt.
 

RousseauX

Donor
They could do command capitalism to get rid of oligarchs

Recent history such as in Egypt proves in developing countries this move actually generates growth

Now for China that's a misnomer because there's currently rapid growth and they wouldnt get any population pressures settled from new Maoism

Command economy just create a new class oligarchs called bureaucrats, who are usually worse than the current class of oligarchs.

And the population pressure on China today is with not enough people being born.

Also using Egypt as an model of economic success is pretty dubious.
 

RousseauX

Donor
One thing doesn't necessarily exclude another. They just could resell (or even give away, whatever) the seized foreign assets to the more loyal and controllable Chinese nationals.
As for why, they may go full Putin style: "F*** economy, I want muh POWAH!!!111" And of course they might try, switching to supplying the enormous and barely tapped internal market, if/when the offended side pushes for an embargo or prohibitive tariffs on Chinese goods.

The Chinese government actively prefers foreign investors to domestic ones.

Domestic businessmen can form a political opposition to the current ruling party, foreign ones can't.
 
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