Chinese Economics Thread

[Bltizo]

No I dont mean the political party I meant the Country and its peoples interests.

LOL ohhh right.

Also what I meant was that a whole lot of people were predicting that NZ was leaning towards Chinas direction in poltical matters but with our new agreement with america NZ will place a lor more consideration towards Americas unlike the period under anti America Helen Clarke and her predecessors when weve tended to give Uncle Sam the fingers.

Hmm really? Well maybe I was too young back then to really notice everyone saying NZ would lean towards China... Personally I feel NZ wasn't very pro chinese under Clarke, just not as pro US.

[bladerunner]

LOL ohhh right.

Futhermore Im not a fan on placing too much reliance on international corps etc. Look at our earthquake problem with Christchurch and our reliance on "Fletchers".They will only pay $40 an hour for people to help rebuild Christchurch and the reason why its so slow is because theres not many prepared to work for that pittance.
Plus weve become to enamoured with tertiary qualifications no matter how useless some of them actually are weve now got a lack of skilled tradespeople which is also hindering the rebuilding.
AS Ive always said not everyone has the ability to gain a useful uni qualification. So its best we retain enough blue collar jobs for these people and pay them 12-14hrs working on a assembly line than walking around on the dole with a attitude problem. WE once had neat jobs assembling Toyotas Hondas and every other japanese make of car until our wanker of a govt threw it all away

Also amongst some people its been suggested that China put the squeeze on NZ to recognize her as a market economy.
and in return Helen got Chinas vote for that cushy job at the UN.
Nz being the first to do so made it easier for other countriesto follow. Being recognised as a market economy supposedly makes it illegal/extremely hard? for any country to place countervailing duties on the goods of countries they accuse of dumping.This is probably contributed to the US recently loosing the steel pipe and tyre case at the WTO recently.

[antiterror13]

China forex reserves hit 3 trln USD by end of March
China forex reserves hit 3 trln USD by end of March - People's Daily Online

China's foreign exchange reserves hit 3.04 trillion U.S. dollars by the end of March, an increase of 24.4 percent year on year, China's central bank said on Thursday.

Source: Xinhua

[Martian]

Chinese currency reserves growth path (Source: EconomicData)


The rapid accumulation of Chinese currency reserves is a reflection of China's increased trade with the world; now at over 10% of total world exports.

China's forex reserves pass US$3 trillion - Channel NewsAsia

"China's forex reserves pass US$3 trillion
Posted: 14 April 2011 1727 hrs

BEIJING: China's foreign exchange reserves soared to a record US$3.0447 trillion at the end of March, the central bank said Thursday.

The stockpile of foreign currency, already the world's largest, expanded 24.4 per cent from a year ago, the People's Bank of China said.

The central bank had said previously its reserves stood at US$2.869 trillion at the end of 2010.

China's forex reserves have ballooned in recent years, fuelled by strong foreign investment, large trade surpluses and inflows of "hot money" - short-term speculative funds in search of quick profits.

- AFP/cc"

[Note: Admittedly, "antiterror13" broke the news first. However, I thought some of you may find it interesting that China's latest 24.4 percent forex increase is consistent with the historical annualized rate of 26.4 percent.]

[Quickie]

Futhermore Im not a fan on placing too much reliance on international corps etc. Look at our earthquake problem with Christchurch and our reliance on "Fletchers".They will only pay $40 an hour for people to help rebuild Christchurch and the reason why its so slow is because theres not many prepared to work for that pittance.
Plus weve become to enamoured with tertiary qualifications no matter how useless some of them actually are weve now got a lack of skilled tradespeople which is also hindering the rebuilding.
AS Ive always said not everyone has the ability to gain a useful uni qualification. So its best we retain enough blue collar jobs for these people and pay them 12-14hrs working on a assembly line than walking around on the dole with a attitude problem. WE once had neat jobs assembling Toyotas Hondas and every other japanese make of car until our wanker of a govt threw it all away

$40/hr is a pittance? Factory workers in China probably get less than 1/10 of that. Ironic that without the trade with China, the buying power of the $40 will be considerably less, with the New Zealand blue collar workers having now to sweat for it for the benefit of the rest of country's populace. Good thing that China now have a policy of raising wages.

[RedMercury]

RE: Garth George

"uppity mandarins"? Just plain 'ole reptilian racism.

[AssassinsMace]

Let's not miss the obvious... Who cares? Anything that upsets a racist is a good thing.

[Martian]

Singapore is poised to overtake the United States in nominal per-capita GDP this year.

Last year, Macau (US$49,745) surpassed the United States (US$47,132) in nominal per-capita GDP. This year, Singapore is likely to join Macau and also surpass the United States.

In early April, the IMF released its 2011 projections for U.S. and Singaporean nominal per-capita GDP (see http://en.wikipedia.org/wiki/List_of...pita_estimates):

United States $48,666
Singapore $48,286

However, the Singaporean economy unexpectedly "rose at an annual rate of 23.5 percent last quarter from the previous three months...and compares with the 11.4 percent median estimate in a Bloomberg News survey of 14 economists. The central bank said separately it will allow the Singapore dollar to appreciate more."

Between the twin effects of an unexpectedly surging Singaporean economy and a faster appreciation in the Singaporean dollar, I expect Singapore's per-capita GDP to significantly increase beyond the $380 gap that separates the United States and Singapore.

Singapore Allows Further Currency Gains as GDP Grows Twice Estimated Pace

"Singapore Allows Further Currency Gains as GDP Grows Twice Estimated Pace
By Shamim Adam



April 14 (Bloomberg) -- Singapore’s economy grew more than twice the pace economists estimated in the first quarter and the central bank said it would allow further gains in the currency in the third tightening of monetary policy in a year.

The Singapore dollar jumped to a record after a trade ministry report showed gross domestic product rose at an annual rate of 23.5 percent last quarter from the previous three months. That’s up from 3.9 percent in the fourth quarter, and compares with the 11.4 percent median estimate in a Bloomberg News survey of 14 economists. The central bank said separately it will allow the Singapore dollar to appreciate more.

The island’s dollar has climbed 10 percent over the past year, the best performer in Asia outside Japan, as policy makers used the currency as their main tool to fight inflation. Earnings at Singapore companies including lender DBS Group Holdings Ltd. and property developer City Developments Ltd. have surged after the economy’s expansion boosted demand for loans and spurred home prices to a record.

“We were taken aback by the strength of the economy in the first quarter,” said Chua Hak Bin, a Singapore-based economist at Bank of America Merrill Lynch. “Still, the central bank’s tightening is less aggressive than in the past” and will result in a more modest appreciation in the currency than the past two decisions, reflecting the uncertainties in the global economy, he said.

Currency Jumps

The Singapore dollar jumped to S$1.2496 a dollar after the central bank’s semi-annual policy statement. It traded at S$1.2505 as of 8:59 a.m. local time.

The Monetary Authority of Singapore revalued the currency in April 2010 and said in October it would steepen and widen the trading band while seeking a modest and gradual appreciation. The central bank guides the Singapore dollar against a basket of currencies within an undisclosed band.

“Economic activity is likely to be sustained at a high level for the rest of the year, even as the underlying growth momentum moderates,” the central bank said. Today’s policy “adjustment takes into account the tighter policy stance adopted in April and October last year, which will continue to have a restraining effect on the economy and prices,” it said.

The central bank will re-center the currency’s band upwards, while keeping it below the prevailing level of the nominal effective exchange rate, it said today. There will be no change to the slope or width of the band, it said."

[pugachev_diver]

Chinese currency reserves growth path (Source: EconomicData)


The rapid accumulation of Chinese currency reserves is a reflection of China's increased trade with the world; now at over 10% of total world exports.

China's forex reserves pass US$3 trillion - Channel NewsAsia

"China's forex reserves pass US$3 trillion
Posted: 14 April 2011 1727 hrs

BEIJING: China's foreign exchange reserves soared to a record US$3.0447 trillion at the end of March, the central bank said Thursday.

The stockpile of foreign currency, already the world's largest, expanded 24.4 per cent from a year ago, the People's Bank of China said.

The central bank had said previously its reserves stood at US$2.869 trillion at the end of 2010.

China's forex reserves have ballooned in recent years, fuelled by strong foreign investment, large trade surpluses and inflows of "hot money" - short-term speculative funds in search of quick profits.

- AFP/cc"

[Note: Admittedly, "antiterror13" broke the news first. However, I thought some of you may find it interesting that China's latest 24.4 percent forex increase is consistent with the historical annualized rate of 26.4 percent.]

It's sad seeing China's savings evaporating within its own appreciating currency. China's stuck in a dead end right now. If it buys more foreign currencies, then with the appreciation of its own currency, it's pretty much losing and giving away money for foreign counties. If it doesn't, it can't print more money. It's
really a dead end for the Chinese.

[Quickie]

It's sad seeing China's savings evaporating within its own appreciating currency. China's stuck in a dead end right now. If it buys more foreign currencies, then with the appreciation of its own currency, it's pretty much losing and giving away money for foreign counties. If it doesn't, it can't print more money. It's
really a dead end for the Chinese.

Any which way, China will have to let its currency appreciate and restructure its economy to one that relies less on producing goods that's cheap to the importing countries but much more expensive to the Chinese themselves. What kind of logic is this, especially when all the Chinese got is not appreciation for their hard work but harsh words, like accusation of polluting the world?

An appreciating currency in the right economic condition and with the currency being undervalued can be good thing. Singapore's currency have always been increasing relative to its neigbouring countries and this, incidentally, happens while the country's economy have been generally doing better than most if not all of its neigbours. I bet her neigbours are not too happy with her appreciating currency all this while, especially when they are visiting.

[KingLouis]

I think eventually all the manufacturing will move to India because is not good for your countries eco-system. The whole workshop is only good for the beginning country need to move away from it sooner or later.

In fact before china did the reform most manufacturing was done in South Korea.

[bladerunner]

$40/hr is a pittance? Factory workers in China probably get less than 1/10 of that. Ironic that without the trade with China, the buying power of the $40 will be considerably less, with the New Zealand blue collar workers having now to sweat for it for the benefit of the rest of country's populace. Good thing that China now have a policy of raising wages.

Supposedly for a skilled tradesmen yes.. I paid $32 hourlyfor a master builder 25yrs ago.If you gave him a 2% increase every year , what would it be now $51-2 an hour ?. Actually I thnk the current rate is a bit more than that in Akld.

Heres somrthing that might interest you;
The CEO of "Fetchers construction" charged with overseeing the rebuilding of Christchurch by The Govt. ( NZ second biggest coroprate) is a Chinese "Jonathon Ling. He has a very strong ASia interests and experience./contacts etc.(of course that means China)

One of the bidding companies has secured funding from the "China Development bank" which has been looking for opportunities to fund infrastructure projects in NZ. The proposal is to ship mass produced temporary housing from China to Christchurch and have them errected by local tradesmen. No problem with that if its up to scratch.

Heres the kicker. NZs free trade agreement with China allows China to send workers to NZ to meet any shortfalls etc and the "CDC" sometimes have clauses in their loans to allow Chinese workers to participate in the project.. Perhaps thats whythe offer by Fletchers of only $40 an hour, knowing full well their wont be too many takers. Man if the bidding sub contractor wins it and pays the workers $40 a hour as per offered rate, the chinese workers will think that all their Christmases have come at once.(chuckle).

Watch this space because if CDC score big,the news will no doubt make this thread.
However theres a couple of big ifs

1/There has been widespread opposition into allowing Chinese workers

2/ and its Its Election Year over here

3/ the recent herald poll showng what 60% + NZders negative on China

4/On the otherhand its an awful tempting bid for the finance minister to dismiss out of hand

5/ The Finance minster is going to China in a few weeks, arggh you can almost feel the squeeze comming on him now.

[bladerunner]

I advise everyone to ignore hatemongers. Globalization cannot be reversed. Multinational corporations in every country have achieved unparalleled scale, lowest labor cost, and unprecedented profits.

U.S. multinationals are reaping enormous overseas profits (e.g. KFCs, Coca Cola, GM cars, forthcoming Walt Disney theme park in Shanghai, etc.) from China. Conversely, China is also benefiting from the international business division of labor and experiencing high employment.

In conclusion, the biased dinosaur from New Zealand is welcome to withdraw from the WTO whenever his country desires. No one is compelling New Zealand's participation in world trade. At an individual level, the dinosaur from New Zealand is free to boycott any "Made in China" product and purchase a more expensive substitute from a country of his choice.

Garth George might also be a forward thinking revisionist

[KingLouis]

WoW $40 and hour that is like one month worth of salary in one day.

[pla101prc]

India? this country needs to get some infrastructure and serious economic and social reforms in place before it can even think about competing with China in manufacturing. the gap between India and China is even bigger than the gap between China and the U.S. and Europe and Japan...which is still pretty huge