broadsword
Brigadier
Sour grapes. Their spending power makes some people seethe. Sigh!
Chinese Economics Thread
- Thread starter Norfolk
- Start date
Sour grapes. Their spending power makes some people seethe. Sigh!
Hendrik_2000
Lieutenant General
Right these people doesn't understand that china Has 1 billion people and not everyone is smart enough to become brain surgeon.
This video is old maybe 2010 vintage. You can see from the wage that they quote. Nowadays the average worker salary in Fujian is close to $800 to $1000/month
The German has proverb "Arbeit adelige die leute"meaning work dignify people.
The Chinese has similar value that as long as the work is legal there is dignity in work.
Plus work train this young people to be discipline,hard work and cooperative . Of course they are going to move into something else And I wouldn't surprise if they didn't . With wages now 2 or 3 X the average wages in SEA increasingly China is automating the factory floor and need better train people.
I am glad this Taiwan factory are providing the training
broadsword
Brigadier
I would not even want to diss geishas. Even if factory wages are too low for them.
Jura The idiot
General
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broadsword
Brigadier
You can do it for yourself. Especially for those who are Sinophobic. And find something more meaningful to do.
AssassinsMace
Lieutenant General
See... it's not only Paul McCartney who thinks by publicly announcing how he won't attend the Beijing Olympics somehow the Chinese will see that as the last straw and start a revolution not because of human rights being violated or democracy forbidden from being exercised but by being denied the honor of his presence... Sorry but no one will be committing suicide over this "sad" news.
Hendrik_2000
Lieutenant General
Now where are those prophet who said that China economy will tank and million will go berserk and demand regime change?
Well the real estate is now booming again and price gone up on average 5% in Shanghai area
The consumer spending is healthy as shown by this article below
Chinese Consumers Might Horrify Chairman Mao
Many of us are old enough to remember the photographs of the “Chinese masses” all dressed alike, in of Chairman Mao. Those days are gone.
China is rapidly on its way to becoming a modern consumer society. That’s good news for a multitude of reasons.
Consider this line from a recent news report: “Steinway, one of the world’s most prestigious musical instrument brands, is looking to China to breathe new life into lackluster sales.” Those were the words of The New York Times this summer, on China’s growing appetite for brand-name luxury goods.
This appetite is increasing even in the face of an economic slowdown. But China’s “slowdown,” of course, is not the same as the U.S. or European slowdown. China’s economy, even operating on cruise control, still grew at a healthy 6.9% annual rate last year, according to the . This was nearly three times the U.S. economic growth rate. If U.S. GDP was expanding at 6.9%, we would be using such terms as “torrid” and “unsustainable”; alarm bells would be going off.
As Jeff Walters and Youchi Kuo, colleagues of mine in our Hong Kong office, have explained, consumer spending in China “is … on a staggering trajectory.” Even if China’s annual GDP growth rate cools to 5.5%, they’ve that the projected increase in consumer spending over the next five years would be in the $2 trillion range, or more – the equivalent of creating a new consumer market some 30% larger than Germany’s or the U.K.’s.
Overall, consumer goods sales in China exceeded 30 trillion yuan last year – or about. $4.6 trillion – Commerce Minister Gao Hucheng has . This was a year-to-year increase of more than 10% over 2014.
Reliable estimates, including Walters’ and Kuo’s, see total consumer spending climbing to some $6.5 trillion or so by 2020.
While luxury goods sales reportedly ticked down slightly last year, the long-term outlook is strong, with the number of upper middle-income and wealthy households to reach the 100 million mark in less than five years.
Recommended by Forbes
So while there are good reasons for manufacturers to return certain factory jobs to the United States, there also are good reasons for manufacturers to ramp up production in and around China. (I say around, of course, because it’s becoming more economical to make certain products elsewhere in Asia, even for the Chinese market.)
The increase in Chinese consumerism is not only a welcome development for international consumer goods manufacturers, but also for China’s leaders, as they try to retool the economy from its heavy reliance on exports, which accounted for 22.4% of GDP last year, according to the World Bank. U.S. exports accounted for 12.6% of GDP.
Chinese consumerism is not just a function of the increase in personal and family wealth in China. It also represents an important attitude change. Today’s Chinese consumers want contemporary fashions, the latest electronic gizmos, furniture and appliances, automobiles, leisure goods. As noted , we’re dealing with “a new generation of freer-spending, sophisticated consumers.” Chairman Mao probably would be horrified.
We’re also seeing a virtual explosion of e-commerce in China. China now boasts an estimated 410 million online shoppers. This will continue to grow. By 2020, the online consumer market is expected to reach some $1.6 trillion annually. That’s larger than the current GDPs of all but a . China’s e-commerce giants, Taobao, TMall, Alibaba and Amazon China among them, must be salivating.
The changing face of Chinese consumerism creates both tremendous opportunities and new challenges for Chinese and western companies alike. One of the potential advantages western companies have is that younger Chinese consumers are among the world’s most brand-conscious. And in the luxury goods space, at the very least, western companies like Steinway, Porsche, Rolex, Ralph Lauren, Tiffany & Co. and Louis Vuitton are among the most desirable brands in the world.
Like everything else in China, the development of a consumer society is a work in progress. The system is still fragile. Much can go wrong. But it appears the genie is out of the bottle. And as the saying goes, once the genie is out of the bottle, he’s not likely to go back in.
Well the real estate is now booming again and price gone up on average 5% in Shanghai area
The consumer spending is healthy as shown by this article below
Chinese Consumers Might Horrify Chairman Mao
Many of us are old enough to remember the photographs of the “Chinese masses” all dressed alike, in of Chairman Mao. Those days are gone.
China is rapidly on its way to becoming a modern consumer society. That’s good news for a multitude of reasons.
Consider this line from a recent news report: “Steinway, one of the world’s most prestigious musical instrument brands, is looking to China to breathe new life into lackluster sales.” Those were the words of The New York Times this summer, on China’s growing appetite for brand-name luxury goods.
This appetite is increasing even in the face of an economic slowdown. But China’s “slowdown,” of course, is not the same as the U.S. or European slowdown. China’s economy, even operating on cruise control, still grew at a healthy 6.9% annual rate last year, according to the . This was nearly three times the U.S. economic growth rate. If U.S. GDP was expanding at 6.9%, we would be using such terms as “torrid” and “unsustainable”; alarm bells would be going off.
As Jeff Walters and Youchi Kuo, colleagues of mine in our Hong Kong office, have explained, consumer spending in China “is … on a staggering trajectory.” Even if China’s annual GDP growth rate cools to 5.5%, they’ve that the projected increase in consumer spending over the next five years would be in the $2 trillion range, or more – the equivalent of creating a new consumer market some 30% larger than Germany’s or the U.K.’s.
Overall, consumer goods sales in China exceeded 30 trillion yuan last year – or about. $4.6 trillion – Commerce Minister Gao Hucheng has . This was a year-to-year increase of more than 10% over 2014.
Reliable estimates, including Walters’ and Kuo’s, see total consumer spending climbing to some $6.5 trillion or so by 2020.
While luxury goods sales reportedly ticked down slightly last year, the long-term outlook is strong, with the number of upper middle-income and wealthy households to reach the 100 million mark in less than five years.
Recommended by Forbes
So while there are good reasons for manufacturers to return certain factory jobs to the United States, there also are good reasons for manufacturers to ramp up production in and around China. (I say around, of course, because it’s becoming more economical to make certain products elsewhere in Asia, even for the Chinese market.)
The increase in Chinese consumerism is not only a welcome development for international consumer goods manufacturers, but also for China’s leaders, as they try to retool the economy from its heavy reliance on exports, which accounted for 22.4% of GDP last year, according to the World Bank. U.S. exports accounted for 12.6% of GDP.
Chinese consumerism is not just a function of the increase in personal and family wealth in China. It also represents an important attitude change. Today’s Chinese consumers want contemporary fashions, the latest electronic gizmos, furniture and appliances, automobiles, leisure goods. As noted , we’re dealing with “a new generation of freer-spending, sophisticated consumers.” Chairman Mao probably would be horrified.
We’re also seeing a virtual explosion of e-commerce in China. China now boasts an estimated 410 million online shoppers. This will continue to grow. By 2020, the online consumer market is expected to reach some $1.6 trillion annually. That’s larger than the current GDPs of all but a . China’s e-commerce giants, Taobao, TMall, Alibaba and Amazon China among them, must be salivating.
The changing face of Chinese consumerism creates both tremendous opportunities and new challenges for Chinese and western companies alike. One of the potential advantages western companies have is that younger Chinese consumers are among the world’s most brand-conscious. And in the luxury goods space, at the very least, western companies like Steinway, Porsche, Rolex, Ralph Lauren, Tiffany & Co. and Louis Vuitton are among the most desirable brands in the world.
Like everything else in China, the development of a consumer society is a work in progress. The system is still fragile. Much can go wrong. But it appears the genie is out of the bottle. And as the saying goes, once the genie is out of the bottle, he’s not likely to go back in.
solarz
Brigadier
I could just as easily say the modern American society, with its racial diversity and gay pride, would horrify George Washington. Abraham Lincoln too, most likely.
All the fancy economic jargon and theory is above me, so what do folks make of the Swiss observation on the Chinese economy.
"China's credit binge increases risk of banking crisis says watchdog
The Bank for International Settlements says the signs point to a problem in the next three years as debt hits 255% of GDP"
"
An early warning of financial overheating – the gap between credit and GDP – hit 30.1 in China in the first quarter of this year, a report from the Bank for International Settlements (BIS) said on Sunday.
Any level above 10 suggests that a crisis will occur “in any of the three years ahead”, the BIS said. China’s indicator is way above the second highest level of 12.1 for Canada and the highest of the countries assessed by the BIS.
Debt has played a key role in shoring up China’s economic growth following the global financial crisis. of GDP in 2015, fuelled in large part by a surge in company borrowing, up from 220% just two years earlier.
China’s bank lending in August more than doubled from the previous month, with much of the gain down to strong mortgage demand.
China’s top banks are lending more to homebuyers and developers than at any time since at least the global financial crisis.
Despite the concerns surrounding China’s debt, UBS analysts said in a report earlier this year that they do not expect an imminent banking crisis.
A high domestic savings rate, underdeveloped capital markets, a relatively closed capital account and government ownership of banks and many large borrowers mean no one can easily “pull the plug” on its credit cycle, they said.
The BIS quarterly review also said that financial markets had coped well with the Brexit vote and other potentially disruptive political developments but asset prices may be running too high and the risks to market stability were growing.
Asset valuations were high, especially given that the foundations they are built on may not be so solid. It did not explicitly say that stock and bond markets were waiting to burst.
BIS reports are not known for their stark language and blunt warnings, but they offer an insight into what is occupying the thoughts of the world’s most powerful and important central bankers............"
"China's credit binge increases risk of banking crisis says watchdog
The Bank for International Settlements says the signs point to a problem in the next three years as debt hits 255% of GDP"
"
An early warning of financial overheating – the gap between credit and GDP – hit 30.1 in China in the first quarter of this year, a report from the Bank for International Settlements (BIS) said on Sunday.
Any level above 10 suggests that a crisis will occur “in any of the three years ahead”, the BIS said. China’s indicator is way above the second highest level of 12.1 for Canada and the highest of the countries assessed by the BIS.
Debt has played a key role in shoring up China’s economic growth following the global financial crisis. of GDP in 2015, fuelled in large part by a surge in company borrowing, up from 220% just two years earlier.
China’s bank lending in August more than doubled from the previous month, with much of the gain down to strong mortgage demand.
China’s top banks are lending more to homebuyers and developers than at any time since at least the global financial crisis.
Despite the concerns surrounding China’s debt, UBS analysts said in a report earlier this year that they do not expect an imminent banking crisis.
A high domestic savings rate, underdeveloped capital markets, a relatively closed capital account and government ownership of banks and many large borrowers mean no one can easily “pull the plug” on its credit cycle, they said.
The BIS quarterly review also said that financial markets had coped well with the Brexit vote and other potentially disruptive political developments but asset prices may be running too high and the risks to market stability were growing.
Asset valuations were high, especially given that the foundations they are built on may not be so solid. It did not explicitly say that stock and bond markets were waiting to burst.
BIS reports are not known for their stark language and blunt warnings, but they offer an insight into what is occupying the thoughts of the world’s most powerful and important central bankers............"