Chinese Economics Thread

[interestedseal]

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1—10月份，规模以上工业企业利润同比增长1.9%，自今年8月份以来累计增速连续三个月保持增长。从三大门类看，1—10月份，采矿业下降27.8%，降幅较1—9月份收窄1.5个百分点；制造业增长7.7%；

Manufacturing firms profits up 7.7% yoy. Equipment and hi tech manufacturing profits up even higher. This does not correlate with the involution/profit-destroying narrative

 

[abenomics12345]

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Manufacturing firms profits up 7.7% yoy. Equipment and hi tech manufacturing profits up even higher. This does not correlate with the involution/profit-destroying narrative

Looking at the economic data (

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), Manufacturing Investments are only growing at 2.7% - this is the anti-involution process working as intended.

Simple math - when demand growth > supply growth, prices go up. That the anti-involution process is working is actually confirmation that there was, indeed, involution.

Recall from

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:

要强化行业自律，防止“内卷式”恶性竞争。强化市场优胜劣汰机制，畅通落后低效产能退出渠道。

And recall from 12 months ago:

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