Chinese Economics Thread

ahho

Junior Member
It is not easy to eradicate poverty in isolated village with no road and services. The last mile is the hardest
They try to move people from those isolated place in put it into new village that can be better service But where is the job? And these people has no other skill other farming
Japan has been successful in developing specialized product agriculture,tourism, etc

Correct, skills does play quite an important factor, but if the village that they are being displaced to is part of a city (3rd or 2nd tier) it would help a lot and they can acquire even more skills. First thing is that they will be exposed to a lot of information. The older generation (60 or older and still healthy) they will find out that there is different employment opportunities, such as security for small factories or restaurants staff. For the working adults, there would be more low skill labour job opportunities and meet new people that are connected to the internet, providing more information. Kids now have better access to schooling and learn basic use of technology.

In "villages" near Jiangmen, security guard for a home sized factory pays 3000 yuan with health/work insurance. People being hired as assistant for truck drivers get 3000 to 4000 Yuan. Parcel delivery personnel get payed at least 2000 yuan depending on the amount of work you are doing, but you have to supply your transportation (bike or motorcycle). Rent are not high comparing to 2nd and big cities and cost of living is not too expensive. If you can endure being a farmer, in general, you can endure being moved to village near cities.

IMO, I always talk about this, first thing to lift people from poverty is Free Health Care. If you are sick, you get poorer and that is not good thing for society as a whole. Better access to information and lessen the bureaucracy. The third one is reduce the cost of education and make sure it is properly enforced and monitored. From what I heard, elementary education is free, but the cost for books are unnecessarily high after it was made free. They really should do what Greater Vancouver did, all text books are borrowed and you would have to pay for it if you loose it. The only thing you have to buy for yourself are pens, paper and other tools
 

antiterror13

Brigadier
It is not easy to eradicate poverty in isolated village with no road and services. The last mile is the hardest
They try to move people from those isolated place in put it into new village that can be better service But where is the job? And these people has no other skill other farming
Japan has been successful in developing specialized product agriculture,tourism, etc

It is indeed not easy ... thats why what China has done by lifting 700 millions people out of poverty in the last 30 years .. is just so amazing and mind-blowing .. no country in the history of the world has done it before .. and China doesn't stop there ... the aim is to "lift" 10 Million more the remaining poverty in the coming years

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Equation

Lieutenant General
It is indeed not easy ... thats why what China has done by lifting 700 millions people out of poverty in the last 30 years .. is just so amazing and mind-blowing .. no country in the history of the world has done it before .. and China doesn't stop there ... the aim is to "lift" 10 Million more the remaining poverty in the coming years

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And the best part about it is that China did it without "democracy and god". That's why we've seen so many China haters and naysayers from the western media because they are either jealous or sad and mad to see their relevancy and belief system has declined. That is why a rising China is threat to them (not all Western people of course just the ones' abide to that kind of thinking).
 
now I read
China Focus: Questionable figures show nothing but protectionism
Xinhua| 2017-06-28 23:32:34
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China has questioned Europol's recent allegation that Chinese mainland and Hong Kong are the world centers for fake goods, saying it might be an excuse for protectionism.

In 2015, Chinese mainland and Hong Kong "were the provenance of 86% of global counterfeiting and $396.5 billion worth of counterfeit goods," Europe's police agency said in a detailed 74-page report, adding intellectual property theft was "one of the most lucrative criminal enterprises".

Insiders say there is no method of calculating figures on fake products worldwide, so the data collected by a regional agency is questionable.

"It may be convincing that they have figures for fake Chinese products in Europe, but it is suspicious that they calculated fake products in China and even China's share of global fake products," said Zhao Ping with the China Council for the Promotion of International Trade.

The Office of the United States Trade Representative's (USTR) said eleven countries, including China, India and Russia, were on the Priority Watch List in its "Special 301 Report" on IPR protection, released in May.

Last year the office blacklisted four websites and six physical markets in China as "notorious marketplaces" known for the sale of counterfeit goods and violations of IPR.

"We cannot rule out the possibility that they are smearing China's image on the basis for trade protectionism," said Zhao.

While it is subject to some debate whether China was the origin of over 80 percent of global counterfeits, intellectual property piracy is indeed a global problem involving production, logistics, sales and consumption.

China is also a victim of counterfeiting. Customs data showed that infringement cases in imports have been increasing at an annual rate of 10 percent. Last year customs seized more than 7.5 million pieces of cargo suspected of IPR infringement, up 13 percent year on year.In one typical case, lubricating oil labeled under famous brand names, such as Shell, was bottled in Malaysia and sold in China.

The commerce ministry has said China is aware of the importance of IPR protection and has made obvious progress in the area.

The country has taken steps to protect IPR as part of its larger effort to create a more innovative economy. Chinese police solved 17,000 cases of IPR infringement worth 4.6 billion yuan (about 670 million U.S. dollars) in 2016.

Customs authorities seized more than 17,000 shipments of goods suspected of IPR infringement last year. The courts heard 136,500 IPR cases in 2016, a 24.8 percent increase.

Industry and commerce regulators also increased online supervision and inspection in rural markets that are prone to counterfeits. They solved nearly 50,000 IPR cases worth about 560 million yuan, and transferred 293 cases worth 160 million yuan to courts in 2016.

E-commerce companies have also joined the campaign. Alibaba assisted police in more than 1,400 cases last year. The company is cooperating with more than 18,000 international brands on an anti-counterfeit initiative.

Approximately 30,000 cross-border sellers were purged by Alibaba from its platforms with the help of big data from February 2016 - 2017.

More effective communication and cooperation between trade partners are needed to improve the legal environment for bilateral economic and trade ties.
 

PiSigma

"the engineer"
now I read
China Focus: Questionable figures show nothing but protectionism
Xinhua| 2017-06-28 23:32:34
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Any paper products, including toilet paper, any silk products, gunpowder, and any magnetic compass products manufactured outside of China are infringing on Chinese IPR since they were are copied and didn't pay any fees for using technology for the last 1000 years.

See where I'm going with this? If people want to make fake Gucci's let them. I don't see value in these consumer brands. The person buying a fake Gucci will never buy a real one anyway. But provides free advertising for Gucci. And eventually if that person becomes wealthy enough may buy the real thing. Same thing applied to a while bunch of other brands and consumer products.
 
now I read
With Provocative Moves, U.S. Risks Unraveling Gains With China
JUNE 30, 2017
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President Xi Jinping of
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likes to call his core foreign policy strategy “win-win.” And President Trump likes to win.

So at a steakhouse inside a sleek, new hotel in Beijing on Friday, there was a celebration of the most tangible result of the unexpected cooperation that emerged in the first months of Mr. Trump’s presidency: the lifting of a ban on American beef imports.

The event, which included a ceremonial carving of a slab of bone-in rib-eye flown in for the occasion, might have symbolized the promise of a constructive era — except the Trump administration seemed to forget that the “win-win” part requires reciprocation, not retaliation.

The
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on Thursday that the administration was selling $1.4 billion of weapons to Taiwan and
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on a Chinese company and a Chinese bank over illicit dealings with North Korea overshadowed the ceremony and provoked a furious response from the government.

A spokesman for the Foreign Ministry, Lu Kang, said those actions contradicted the agreements that emerged from Mr. Xi’s meetings with Mr. Trump at Mar-a-Lago in April, among them the decision to lift the beef ban, which had been in place since December 2003. If not reversed, they could have consequences, he said.

“We hope the United States administration could correct its mistakes and bring China-U.S. relations back to the right track of healthy, stable and long-lasting development, so as not to affect bilateral cooperation in other important fields,” he said.

The arms sale to Taiwan, which Beijing considers part of its territory, was a violation of international law that “hurt China’s sovereignty and security,” Mr. Lu said, adding that China resolutely opposed it.

While administration officials said Mr. Trump had grown increasingly frustrated with China for not putting more pressure on North Korea over its nuclear and missile programs, the response showed that officials here, too, were frustrated by Mr. Trump’s lurching strategy and cavalier style of tweeting new policy.

The latest steps, analysts said, felt retaliatory, and thus could prove counterproductive.

“The United States has stabbed us in the back,” said Wang Dong, an assistant professor at the School of International Studies at Peking University. He said the sanctions — the first against a Chinese company for trading with North Korea since 2006 — would undermine China’s willingness to help resolve the nuclear issue.

China has repeatedly said it shares the goal of halting North Korea’s nuclear program, or more broadly ensuring the entire Korean Peninsula is without
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. It has also repeatedly maintained that it complies with trade sanctions that the United Nations Security Council imposed in an effort to isolate the North from resources to finance its nuclear and missile programs.

The extent of its cooperation, however, is disputed in Washington, even within the new administration. “The Chinese tried to gauge what were the minimal steps they could take to comply with the resolutions and show they were serious about North Korea’s program,” said Bonnie S. Glaser, a senior adviser for Asia at the Center for Strategic and International Studies in Washington. “And they miscalculated.”

Officials in Beijing, however, have puzzled over what they view as conflicting signals from Mr. Trump, like his harsh words on the campaign trail and the personal bonhomie toward Mr. Xi to persuade him to apply a new round of pressure. Analysts have pointed to a widespread confusion over the United States’ approach to North Korea, among other issues.

Those include Mr. Trump’s disavowal of the
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on
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, now a priority of Mr. Xi’s and one that is expected to be contentious when Mr. Trump attends the Group of 20 meetings in Germany next week.

The sanctions against the two Chinese companies were announced in Washington by Mr. Trump’s treasury secretary, Steven Mnuchin, only hours before the agriculture secretary, Sonny Perdue, arrived in Beijing to promote “tasty, wholesome, healthy, safe U.S. beef.” The ban, ostensibly imposed because of concern over
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, was officially lifted in May and the first shipments have begun to arrive in Chinese supermarkets and restaurants.

“We think there’s an opportunity for agriculture to lead the way in the future relationship of commerce between our two wonderful countries,” Mr. Perdue, the former governor of Georgia, said as he appeared with the new American ambassador, another former governor, Terry E. Branstad, and a handful of hat-wearing cattlemen at a restaurant called Char.

Mr. Trump himself promoted the lifting of the beef ban on Twitter as “
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,” evidence of his ability to entice concessions from China’s leaders on behalf of producers eager to feed China’s growing consumer class.

But his efforts to prod the Chinese on North Korea have, by his own account, failed. “While I greatly appreciate the efforts of President Xi & China to help with North Korea, it has not worked out,” the president
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on Twitter more than a week ago.

The new sanctions targeted the Bank of Dandong and Dalian Global Unity Shipping — as well as two Chinese businessmen — who were accused of supporting North Korea through money laundering or illicit trade.

The bank, which could find itself cut off from the international banking system, is not among China’s biggest, raising the prospect that the administration could single out larger ones. A woman who answered the phone at the bank’s headquarters refused to respond to a request for comment.

Although an outright breach in relations remains unthinkable, given the depth of economic ties, the outward warmth Mr. Trump once showed Mr. Xi seems to have worn out its welcome in China. And it happened much sooner than officials here expected.

Shi Yinhong, a professor of international relations at Renmin University of China, said that Mr. Trump’s actions returned the relationship to normal: strained, with deep issues dividing the two countries.

Under Mr. Trump, he said, there was even less room for cooperation than under his predecessor, Barack Obama, who sought to work with China on climate change, for example.

“The latest situation has also illustrated that Trump is a leader without patience,” Mr. Shi said.
 

Equation

Lieutenant General
now I read
With Provocative Moves, U.S. Risks Unraveling Gains With China
JUNE 30, 2017
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“The latest situation has also illustrated that Trump is a leader without patience,” Mr. Shi said.

This means China has everything they need to know about Trump to make A LOT of check mated moves in regards to any kind of diplomatic negotiation.;)
 

Hendrik_2000

Lieutenant General
Labor is getting more expensive so the industry have no choice but automate, innovate or die And that is exactly what the economic planner has in mind
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China Robots Displace Workers as Wage Spiral Pressures Profits
Bloomberg News
July 2, 2017, 2:00 PM PDT
  • Study finds average factory wages doubling over 10 years
  • Companies are tapping subsidies, tax breaks, and automating
1000x-1.jpg

A robotic arm stacks boxes at a pharmaceutical facility in Wuhan, China.

PHOTOGRAPHER: QILAI SHEN/BLOOMBERG
As he marches through a gritty factory that makes baby strollers and wheels, Hu Chengpeng says finding workers is his number one challenge these days. Turnover at the facility in Hanchuan in Hubei province in central China is running at 20 percent, even while wages have been growing by double digits for his 400-plus workers every year. “Labor costs are getting just too high,” he said.

All of which explains why Hu, 34, is embracing China’s robotics revolution. He has added 40 new robots, each costing 40,000 yuan ($5,850), this year to replace dozens of workers tasked with cutting plastic molding. Eventually the factory will use a quarter fewer workers than today, without having to reduce annual production, he said. Hu also said he plans to shift more production away from making simple components and towards producing higher-margin branded strollers.


With real wages more than doubling in the last decade, manufacturers are automating, investing in research and development, and adding new higher-value products, according to the latest findings of the China Employer-Employee Survey (CEES), carried out by the Wuhan University Institute of Quality Development Strategy, Chinese Academy of Social Sciences, Stanford University, and the HKUST Institute for Emerging Market Studies.


China is no longer the cheap labor haven it once was. Monthly manufacturing wages reached 4,126 yuan at the end of 2015, equal to those in Brazil but much higher than Mexico, Thailand, Malaysia, Vietnam, and India.


At the same time, many firms are relying on government subsidies, while barely eking out profits or even losing money, according to the study released June 20. “Time is running out fast for Chinese manufacturers to adapt,” says Albert Park, head of the survey’s international committee and a labor economist at The Hong Kong University of Science and Technology.

The study canvassed more than 1,200 companies and 11,300 workers in Guangdong, China’s biggest manufacturing province, and Hubei, a major industrial base in central China. Some 26 percent of workers left their jobs annually in Guangdong and that turnover rate was even higher for younger workers, about 37 percent for employees below 28.

1000x-1.jpg

Inside a textiles factory in Anhui Province.
PHOTOGRAPHER: VCG VIA GETTY IMAGES
Over the last year, not many factories have opted to move operations to cheaper-wage countries, the survey showed, but instead are investing in robots and automation. About 8 percent of firms now have robots and two-fifths are automated.

“With the reality of rising labor costs and to improve efficiency, we have to keep investing in automation,” says Chen Jiuyuan, the 43-year-old operations manager at Hubei Hengwei Aluminum Co, which produces energy-saving window frames, doors, and car frames, and is also based in Hanchuan. Average line wages have risen from around 2,000 yuan ($292) when Hengwei opened seven years ago, to 3,500 yuan ($512) now, he says.

But while industrial upgrading has been a key strategy, that may be changing. Indeed, fixed capital spending as a proportion of sales fell from 25 percent in 2013 to 19 percent in 2015. Meanwhile, the share of companies investing in R&D has fallen to 44 percent, down ten percentage points since 2014. “Decisions to reduce capital investment are often related to uncertainty about the future. They could reflect views about future growth in China,” says HKUST’s Park.

As the economic environment worsens, one way to keep costs down is to rely on labor service or dispatch companies, rather than hire workers directly. This allows companies to avoid paying the high social welfare payments required by law, amounting to about 40 percent of wages. Also common: county cadres who accept reduced payments to encourage factories to not relocate. The average social insurance contribution for workers runs at just 17% the survey shows. “Companies will negotiate with local officials about how much social welfare contributions they have to put in,” says Wang Kan, a labor expert at the China Institute of Industrial Relations in Beijing.

Most firms are receiving tax exemptions, tax refunds, and outright subsidies, offered by local and provincial administrations eager to encourage industrial upgrading. In Guangdong, there is a subsidy for every robot purchase, for example. Perhaps not surprisingly, state-owned enterprises were the biggest recipients, with 83 percent reporting they receive benefits; for private companies it was just under one-half.

Even with government largess, one fifth of all companies still lose money, with 26% of state-owned firms-eight percentage points more than private ones-in the red. Both the stroller maker and Hengwei Aluminum report they are profitable. “It’s like a baby when it grows too fast gets indigestion,” says Cheng Hong, director of Wuhan University’s quality development institute. “We have discovered that rising labor costs have given us all kinds of problems we didn’t expect.”
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Equation

Lieutenant General
Labor is getting more expensive so the industry have no choice but automate, innovate or die And that is exactly what the economic planner has in mind
Please, Log in or Register to view URLs content!

China Robots Displace Workers as Wage Spiral Pressures Profits
Bloomberg News
July 2, 2017, 2:00 PM PDT
  • Study finds average factory wages doubling over 10 years
  • Companies are tapping subsidies, tax breaks, and automating
1000x-1.jpg

A robotic arm stacks boxes at a pharmaceutical facility in Wuhan, China.

PHOTOGRAPHER: QILAI SHEN/BLOOMBERG
As he marches through a gritty factory that makes baby strollers and wheels, Hu Chengpeng says finding workers is his number one challenge these days. Turnover at the facility in Hanchuan in Hubei province in central China is running at 20 percent, even while wages have been growing by double digits for his 400-plus workers every year. “Labor costs are getting just too high,” he said.

All of which explains why Hu, 34, is embracing China’s robotics revolution. He has added 40 new robots, each costing 40,000 yuan ($5,850), this year to replace dozens of workers tasked with cutting plastic molding. Eventually the factory will use a quarter fewer workers than today, without having to reduce annual production, he said. Hu also said he plans to shift more production away from making simple components and towards producing higher-margin branded strollers.


With real wages more than doubling in the last decade, manufacturers are automating, investing in research and development, and adding new higher-value products, according to the latest findings of the China Employer-Employee Survey (CEES), carried out by the Wuhan University Institute of Quality Development Strategy, Chinese Academy of Social Sciences, Stanford University, and the HKUST Institute for Emerging Market Studies.


China is no longer the cheap labor haven it once was. Monthly manufacturing wages reached 4,126 yuan at the end of 2015, equal to those in Brazil but much higher than Mexico, Thailand, Malaysia, Vietnam, and India.


At the same time, many firms are relying on government subsidies, while barely eking out profits or even losing money, according to the study released June 20. “Time is running out fast for Chinese manufacturers to adapt,” says Albert Park, head of the survey’s international committee and a labor economist at The Hong Kong University of Science and Technology.

The study canvassed more than 1,200 companies and 11,300 workers in Guangdong, China’s biggest manufacturing province, and Hubei, a major industrial base in central China. Some 26 percent of workers left their jobs annually in Guangdong and that turnover rate was even higher for younger workers, about 37 percent for employees below 28.

1000x-1.jpg

Inside a textiles factory in Anhui Province.
PHOTOGRAPHER: VCG VIA GETTY IMAGES
Over the last year, not many factories have opted to move operations to cheaper-wage countries, the survey showed, but instead are investing in robots and automation. About 8 percent of firms now have robots and two-fifths are automated.

“With the reality of rising labor costs and to improve efficiency, we have to keep investing in automation,” says Chen Jiuyuan, the 43-year-old operations manager at Hubei Hengwei Aluminum Co, which produces energy-saving window frames, doors, and car frames, and is also based in Hanchuan. Average line wages have risen from around 2,000 yuan ($292) when Hengwei opened seven years ago, to 3,500 yuan ($512) now, he says.

But while industrial upgrading has been a key strategy, that may be changing. Indeed, fixed capital spending as a proportion of sales fell from 25 percent in 2013 to 19 percent in 2015. Meanwhile, the share of companies investing in R&D has fallen to 44 percent, down ten percentage points since 2014. “Decisions to reduce capital investment are often related to uncertainty about the future. They could reflect views about future growth in China,” says HKUST’s Park.

As the economic environment worsens, one way to keep costs down is to rely on labor service or dispatch companies, rather than hire workers directly. This allows companies to avoid paying the high social welfare payments required by law, amounting to about 40 percent of wages. Also common: county cadres who accept reduced payments to encourage factories to not relocate. The average social insurance contribution for workers runs at just 17% the survey shows. “Companies will negotiate with local officials about how much social welfare contributions they have to put in,” says Wang Kan, a labor expert at the China Institute of Industrial Relations in Beijing.

Most firms are receiving tax exemptions, tax refunds, and outright subsidies, offered by local and provincial administrations eager to encourage industrial upgrading. In Guangdong, there is a subsidy for every robot purchase, for example. Perhaps not surprisingly, state-owned enterprises were the biggest recipients, with 83 percent reporting they receive benefits; for private companies it was just under one-half.

Even with government largess, one fifth of all companies still lose money, with 26% of state-owned firms-eight percentage points more than private ones-in the red. Both the stroller maker and Hengwei Aluminum report they are profitable. “It’s like a baby when it grows too fast gets indigestion,” says Cheng Hong, director of Wuhan University’s quality development institute. “We have discovered that rising labor costs have given us all kinds of problems we didn’t expect.”
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Typical doom and gloom China article. They forgot to mention how fast China has adapt. They didn't even mention the growing service sector in China that are replacing the factory workers jobs.
 
now I read
Iran, China, France sign 4.8 billion USD gas deal
Xinhua| 2017-07-03 21:24:58
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and a consortium of Chinese and French energy giants signed a multi-billion-dollar deal here on Monday to develop a major Iranian gas field in the Persian Gulf.

The deal followed a Memorandum of Understanding (MOU) signed by the National Iranian Oil Company and a consortium involving China National Petroleum Corporation (C
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),
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's Total and Iran's Petropars in November 2016 to develop Iran's South Pars (SP11) gas field.

At Monday's signing ceremony, Iran's Petroleum Minister Bijan Namdar Zanganeh, Total's CEO Patrick Pouyanne and Lv Gongxun, representatives of the CNPC were present.

According to Zanganeh, the contract for development of the gas field is worth 4.8 billion U.S. dollars. The contract will be carried out in two phases with a total period of 20 years.

At each stage, 2.4 billion U.S. dollars of foreign fund will be allocated for the project, the minister said, adding that Total will operate the SP11 project with a 50.1 interest alongside CNPC with 30 percent and Petropars with 19.9 percent.

Iran expects to produce as much as 56 million cubic meters per day of natural gas from the field once it is in full swing, he said.

The South Pars field is a natural gas condensate field located in the Persian Gulf. It is the world's largest gas field shared between Iran and Qatar.

According to the International Energy Agency, the field holds an estimated 51 trillion cubic meters of in-situ natural gas and some 50 billion barrels of natural gas condensate.
 
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