Chinese Economics Thread

ahho

Junior Member
The reason why wages in China are rising so fast is not because of a aging population. But its because the economy is moving up the value chain and is also diversifying away from (low end) manufacturing. It is becoming more difficult for low end manufacturers to find workers. As people in China no longer have to go to the coastal cities to work in city sized factories as there are oppertunities closer to home. The ones that are moving out of China are the lower end manufacturers that are facing higher labor costs and more stringent environmental rules. But where China is losing out on the lower end China is gaining in the mid to higher end. You can see that in the fact that China every year is gaining a ever larger share of the world's industrial output as well as a larger share of the global export market.

This is true, quite a bit of manufacturing are moving interior or westward. The wages there are cheaper and the trained migrant workers are usually the pioneers that brings work back home. They would first start getting contract on producing part of the products and over the year, they would be building the entire product. The original boss from the coastal cities could shut down the manufacturing operation and contract the migrant worker to produce the product from their home town. As second and third tier city grows, manufacturing also get shifted there since stable infrastructure would be build.
 

tphuang

Lieutenant General
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Deleted a bunch of posts that's completely off topic.

Equation, I don't know what your problem is, but in at least 2 occasions here you called any posts that you see as anti-Chinese government to be Christians, even though there is no indication that Christianity has anything to do with it.

We allow both pro and anti-Chinese posts here on this forum.

Anything more like this will get you a suspension.


And btw, as an aside on this since there seems to be much hate on Christianity and West here. Chinese people living in Western Christian countries have been allowed to pursue their dreams, live peacefully and legally obtain citizenship. There has no been any case in US, Canada and Australia of mass targeted violent racial attacks against Chinese population as there have been in Indonesia in 1998 or Malaysia in 1967 (or even last year).
 
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tphuang

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I don't think my message was clear, this is an economics thread, we allow economic stuff here.

If you have problem with what I said, please message me rather than continue to go off topic. I'd gladly have a long discussion with anyone who thinks I am being unfair as long as you stay on topic.
 

advill

Junior Member
I think to be objective, we should focus our comments or debate on Economic, Trade and Investment issues in this Thread. These are currently interesting, especially with President Trump's recent US trade policies that appear in-ward looking, as well as President Xi Jiping's views/ support for trade globalisation at Davos recently. Economists and businesses are interested in where the world and region will be heading, and actions that can being taken i.e. progress of AIIB, One Belt One Road, Maritime Silk Road, RCEP, bi-lateral & other multi-lateral trade agreements with UK, EU etc.
 
according to Business Insider Australia (dated Feb 6, 2017, 5:09 AM)
JACK MA: 'If trade stops, war starts'

Chinese tech billionaire Jack Ma made headlines last month for visiting Donald Trump and announcing his company Alibaba would
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for the United States.

On Saturday in Australia, he warned in no uncertain terms that a retreat from globalisation would only result in trouble.

“If trade stops, war starts,” said Ma, in Melbourne to
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.

“We have to actively prove that trade helps people to communicate. And we should have fair trade, transparent trade, inclusive trade.”

Ma said that a globalised economy was more than just transactions of money and goods.

“Trade is about trade of values. Trade of culture,” he said, adding that he felt a personal responsibility to fly more than 100,000km in the past month to promote global commerce.

Ma said that he had “a wonderful discussion” with Australian prime minister Malcolm Turnbull on Friday to discuss the possibility of Alibaba collaborating with the government to create a regional “e-hub” — a trade zone that would allow for freer online commerce with less border bureaucracy to deal with.

“Most of the free trade zones in the past 20 years are designed for big companies,” he said.

“If Australia, New Zealand and other countries can create a free trade zone in the form of an e-hub for small businesses, they can work like the big companies – with 24 hours clearance, better tariffs and quicker [border] inspections. That could help a lot of small businesses.”

Although Turnbull was slated to attend, he was absent at the Melbourne launch and was represented by the federal innovation minister Arthur Sinodinos. Among the 350-strong crowd of business and political leaders at the event were Victorian premier Daniel Andrews and New Zealand economic development minister Simon Bridges.

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What does everyone make of this?

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TECHNOLOGY NEWS | Fri Feb 10, 2017 | 5:58am EST
Bitcoin trading shrivels under Chinese government's glare

By Brenda Goh | SHANGHAI
Trading volumes at China's three largest bitcoin exchanges have plummeted after the central bank put the virtual currency market under sharper scrutiny a month ago in a move that coincided with official efforts to stem capital outflows.

China had been the world's leading venue for bitcoin trading, with analytics site Bitcoinity estimating that the OkCoin, Huobi and BTCC exchanges had accounted for more than 90 percent of the global bitcoin market on Jan. 11.

But data compiled by analytics platform Sosobtc showed the number of bitcoins traded on the three exchanges slumped from 13.6 million on Jan. 6 to just over 120,000 on Feb. 9.

The People's Bank of China launched checks into the three exchanges last month and they have responded by saying that they would improve their systems to prevent money laundering and the use of bitcoin to trade against the yuan.

On Thursday, the People's Bank of China said it had also warned smaller bitcoin exchanges that it would shut them down if they violated regulations.

While the yuan CNY=CFXS weakened 6.6 percent against the dollar last year, its worst performance since 1994, the bitcoin price BTC=BTSP has soared to near-record highs.

That, and the relative anonymity the digital currency offers, has prompted some market operators to believe bitcoin had become an attractive, if niche, option for tech-savvy Chinese to hedge against the yuan and skirt rules limiting how much foreign exchange individuals can buy each year.

The three main exchanges have introduced trading fees, stopped allowing margin lending and increased scrutiny of user identities, making it far less attractive for automated, high speed trades which had previously accounted for the lion's share of their business.

The absence of trading fees had provided an advantage over overseas rivals earlier, but that advantage has now gone, traders said.

Business has virtually dried up on Beijing-based high-speed bitcoin trading platform BotVS, according to chief executive Chen Zhenguo.

"With the transaction fees the profits you can get from hedging (Bitcoin) are too low...You might as well put your money in Yu'e Bao," he said, referring to a money market fund run by an Alibaba Group (BABA.N) affiliate.

Other traders voiced similar sentiments.

Cai Wenhao, business manager at Sosobtc, said trading volume levels in China would likely normalize to around those seen on exchanges elsewhere, like the Hong Kong-based Bitifinex and U.S.-based Coinbase.

(Reporting by Brenda Goh; Additional Reporting by SHANGHAI Newsroom and John Ruwitch; Editing by Simon Cameron-Moore)
 

advill

Junior Member
On hind side, I believe President Xi and his Economic, Diplomatic & Security Team are wise, patient and practical when dealing with the Trump Administration. When there is disarray and confusion presently taking place in the US by internal arguments and counter-arguments, best to remain a discerning observer, except on major issues like the "One China Policy" and a few other China's core interest. The American political "smog" is still around, but hopefully slowly clearing in due course. Trump's recent reaffirming of the "One China's Policy" when contacting President Xi, and Defence Secretary Mattis's reference to the South China Sea contrary to what was commented earlier by Tillerston (now Secretary of State) are encouraging. The geopolitical, economic and security manoeuvrings are like playing "Chess", where the player who is patient and observant of his opponent's hasty moves have the advantage of planning his counter strategies. Wise saying of Sun Tzu (500 BC) "Know Yourself & Know Your Enemy (albeit Competitor), 100 Battles 100 Victories". However, the best scenario for the world for the next 10-20 years is to have common understanding between Super Power US & Rising Power China, with the Give & Take moves leading, hopefully to a "Win-Win" situation for both nations.
 
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