Chinese Economics Thread

[ZeEa5KPul]

My overall point is, the other side gets a vote/choice on what happens next.

My point is they don't because they don't have any power and can't do anything about it. They can cry and whine and throw their toys out of the pram all they want, China will keep advancing relentlessly. Chinese progress shouldn't be slowed down even infinitesimally to accommodate losers.

In any event, China has been more than sufficiently accommodating to the Garden™ - it's opened its markets to their companies without reciprocal access. If they want to go to the mattresses with tariffs, export bans, investment screening, etc., China has already demonstrated it can hurt them badly.

 

[abenomics12345]

My point is they don't because they don't have any power and can't do anything about it. They can cry and whine and throw their toys out of the pram all they want, China will keep advancing relentlessly. Chinese progress shouldn't be slowed down even infinitesimally to accommodate losers.

In any event, China has been more than sufficiently accommodating to the Garden™ - it's opened its markets to their companies without reciprocal access. If they want to go to the mattresses with tariffs, export bans, investment screening, etc., China has already demonstrated it can hurt them badly.

You are assuming Eurocrats aren't stupid and are rational people. They can still put up trade barriers and make the Chinese economy hurt, even if it is a classic example of Europeans cutting off their nose to spite their face.

 

[Overbom]

You are assuming Eurocrats aren't stupid and are rational people. They can still put up trade barriers and make the Chinese economy hurt, even if it is a classic example of Europeans cutting off their nose to spite their face.

Even old dogs can learn new tricks if you get the stick out and you start beating them. That's animal kingdom

See with Trump and the Americans. They thought themselves the superior stronk race that would bully China. However, when Xi finally got the stick out and beat them hard a few times on their head, they now got PTSD and lick Xi boots the moment they hear the word "Chyna!".

What I mean is that everyone has free will. Europeans can do whatever they want, but when as a response Xi gets the stick out, we will see if that really soon-to-die old dog Europe will learn a new trick and behave appropriately. I trust it will learn, because no matter how old, we are all apes and in ape society, weak submit to the strong

 

[hereforsemithread]

China doesn't control what euros do. If they tarrif then they tarrif, there's nothing the government can do to make them stop.

Likewise they have very little means of boosting domestic consumption of specifically manufactured goods in the short term. Consumption of poorer residents is already growing robustly across the board and doesn't need stimulus.
Rich urbanites are tight pursed right now mainly because of continued declines in housing prices sapping their confidence. The center could pump housing to stop this but they have repeatedly shown themselves unwilling to do that so it's moot. In any case residents rich enough to have negative wealth effects from housing price declines are already past the point of sharply diminished goods consumption with respect to income growth so again, not much the government can do.

That leaves boosting services consumption among the more wealthy as the remaining viable avenue for consumer stimulus. Domestic tourism in particular has been singled out as something to focus on in recent policies. But expect the impact of these efforts to be fairly modest in the near term because of the housing anchor.

Consumer stimulus isn't the only kind of stimulus because consumption isn't the only economic activity that generates demand. Investment also generates demand, including consumption via all of the people paid to build/make the thing being invested in.
Moreover, the Chinese state owns enormous means of investment through SOEs and its control of the banking system. So the government isn't politically dependent on managing the sentiment of the already well-off to stimulate the economy. It would certainly like them to have good sentiment, but it also has plenty means to maintain aggregate demand in the case that really boosting their sentiment contradicts with other policy goals.

Given the lack of high-power consumer stimulus options available which aren't in conflict with the Xi administration's long term objectives, it is likely that a domestic investment push will feature as the primary means of stimulating the economy in the coming 1-2 years.

 

[siegecrossbow]

Even old dogs can learn new tricks if you get the stick out and you start beating them. That's animal kingdom

See with Trump and the Americans. They thought themselves the superior stronk race that would bully China. However, when Xi finally got the stick out and beat them hard a few times on their head, they now got PTSD and lick Xi boots the moment they hear the word "Chyna!".

What I mean is that everyone has free will. Europeans can do whatever they want, but when as a response Xi gets the stick out, we will see if that really soon-to-die old dog Europe will learn a new trick and behave appropriately. I trust it will learn, because no matter how old, we are all apes and in ape society, weak submit to the strong

Did China put a shock collar on them Hassan style???

 

[TK3600]

I don't believe in boosting consumptions like tourism. Entertainment is very cheap these days. Games, tv show, slops on internet, you name it. It used to be just young people doing those, but even older people is now constantly on internet. It is not a matter of having money, is is where the value lies. And unfortunately for us where the value lies no longer boost real economy like tourism.

Someone like @abenomics12345 can use data to debunk me. But until then I trully think this is where problem lies. Give me twenty million dollar, I won't buy a car or a boat. I might buy a new PC, TV, or a bigger house, but I will not 'consume'.

One way to force me to consume is to convince me to get married and have kid. Then I will spend a lot on the kid on consumer products. But for myself? Not a chance! So end of day maybe the actual cause of consumption collapse go back to the birth rate issue, a discussion that mods will ban me for.