Chinese Economics Thread

taxiya

Brigadier
Registered Member
Just a ploy to raise cash for its operations

I am not a fan of Musk due to his flamboyant style, but regardless his intention, his plan is not bad for China. It is his investment or whoever's money, his factory, research center and equipment on Chinese soil hiring Chinese workers and engineers. Chinese investments in it runs similar risk as in other All-E cars from tech perspective.

More over, who is going to supply the batteries? And many more components in the supply chain? Look at other industries, Chinese components will increase gradually. That is a good for China. I know that Panasonic is the sole? supplier for now, but who knows what will happen to this factory in China, some Chinese suppliers' name come up immediately, CATL and BYD.

On a broader scope, BMW just signed with Brilliance (Shenyang Jinpei, Zhonghua, producing BMW 1, 3 and 5 series today) a new agreement to increase the production in China of its SUV from 400,000 (per year?) to 500,000. This is on top of another agreement BMW signed earlier (from 300,000 to 400,000). These SUVs are today built in South Carolina USA and exported to China (40% of its total). China's retaliatory tariff on US made cars apparently pushed BMW to shit the production. Musk is simply doing the same thing. Harley Davidson thinking of Thailand factory is another example.
 
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Hendrik_2000

Lieutenant General
Here is the New China report on the subject of China improve ranking in innovation. China jump 5 places from the 22th to 17th Well next year will be 12th
 

vincent

Grumpy Old Man
Staff member
Moderator - World Affairs
I am not a fan of Musk due to his flamboyant style, but regardless his intention, his plan is not bad for China. It is his investment or whoever's money, his factory, research center and equipment on Chinese soil hiring Chinese workers and engineers. Chinese investments in it runs similar risk as in other All-E cars from tech perspective.

More over, who is going to supply the batteries? And many more components in the supply chain? Look at other industries, Chinese components will increase gradually. That is a good for China. I know that Panasonic is the sole? supplier for now, but who knows what will happen to this factory in China, some Chinese suppliers' name come up immediately, CATL and BYD.

On a broader scope, BMW just signed with Brilliance (Shenyang Jinpei, Zhonghua, producing BMW 1, 3 and 5 series today) a new agreement to increase the production in China of its SUV from 400,000 (per year?) to 500,000. This is on top of another agreement BMW signed earlier (from 300,000 to 400,000). These SUVs are today built in South Carolina USA and exported to China (40% of its total). China's retaliatory tariff on US made cars apparently pushed BMW to shit the production. Musk is simply doing the same thing. Harley Davidson thinking of Thailand factory is another example.

My concern is Musk raises tons of cheap loans from Chinese and then deliver nothing. He likes to think big but can't execute. He got no talent in mass production and may very well run Tesla to the ground. Chinese will be the one left holding the bag
 

Hendrik_2000

Lieutenant General
Here is the story of Jinjiang formerly poor village that got rich by manufacturing shoe. And it is dirt poor in the past hundred of thousand were forced to migrate at the end of Qing dynasty mostly to SEA. Quanzhou dialect is prominent in Penang and Medan, Manila.Located close to Quanzhou. It is one of the oldest dialect in Fujian. Nowadays it attract migrant from all over China But they treat them as their own no difference they got social welfare benefit the same as local.
Thing will be better in the future because Jinjiang is selected as one of three memory chip fabrication


data=YDwYEe015aVSCjCJdR_waunqxCOE8jCQK_vHqHqLu_9TreY_ea0pUjVmdUwJcFJij74ugHEddboamW7L4dKWfDaAF3XvtuQONkscBJtEOozgJNACE0Jaj3B3vG1OEaGrOLhPhXulqQSUURbv05Ts8pS9hPngEjiGsasdmhu33cmCPq-A524mGmaPByp60l2cJbNSdnSVnRqpKqngrcDNI1cGZuQQYcn8fvIRm1fE9-rb_g


Fujian Jin Hua equips Jinjiang fab

China DRAM start-up, Fujian Jin Hua Integrated Circuit, is moving fab equipment into its Jinjiang fab (pictured) with the intention of running first silicon in Q3 2018, reports Digitimes.

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The fab is to make DRAM on a 32nm process supplied by UMC. It is being initially equipped to run 60k wpm. It is spending $5.3 billion to get to that point. The intention is to spend more, later, to expand the fab or build another.

With Samsung currently ramping up DRAM on an 18nm process, Jin Hua has a long way to go before it becomes competitive in the world market, but the China government is expected to find customers for its production whatever the yield, cost or timing of the eventual output.
 
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now noticed the tweet
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Chinese Gigafactory 3,
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's next Gigafactory, will be built in
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and can produce 500K automobiles per year, CEO of Tesla Elon Musk announced in Shanghai on Tue; The deal is the biggest foreign manufacturing project of all time in the city.

DhwKl6zUcAAKn5q.jpg
Just a ploy to raise cash for its operations
then you probably should read
Commentary: U.S. brazen bullying on trade to boomerang back with unbearable costs
Xinhua| 2018-07-12 15:36:22
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Washington's efforts to slap tariffs on China and other major trading partners are destined to meet with retaliation worldwide with its continued disregard of global rules, supply chains and multilateral framework.

In a most recent move, it went further in extending tariff measures affecting another 200-billion-U.S. dollar imports from China.

The list rolled out on Tuesday adds to the Trump administration's tariffs on some 34-billion-dollar Chinese goods last week, and would in all likelihood pour fuel on the already escalating trade conflict between the world's two largest economies.

For starters, the U.S. plan is illegitimate and ill-grounded. Its justification, or the so-called Section 301, is widely known as a one-sided tool that was born and bred in the Cold War era and has been banned by the World Trade Organization (WTO) to legitimize U.S.-initiated sanctions, to which, by the way, Washington had once pledged to commit.

Besides, those hawks inside the Trump administration seem to expect an overturn of global supplies and a comeback of U.S. productions by means of tariffs.

Both are fallacies. As shown in the fleeing of U.S. motorcycle maker Harley-Davidson, the market rules will lead global investors to vote with their feet for lower costs and higher efficiency in the interests of their stockholders.

Even if the Trump administration really gets its way by disturbing the current global supply network, the sophisticated industries, sufficient labor force and snowballing middle-class market in Asia would warrant a re-integration of supplies inside the region, not otherwise.

In sharp contrast with the nosedive of U.S. popularity among investors since the Trump administration announced tariffs, China's recent commitment to further reform and opening up has been attractive to Tesla and BMW.

Tesla will open its first overseas plant in Shanghai, with a planned annual capacity of 500,000 electric cars. BMW has also been thinking about expanding investment in China.

The German automaker has warned that the U.S. tariffs on imported motor vehicles would further switch off foreign investments and domestic jobs.

Moreover, by overpromising and then underdelivering its commitment to free trade, Washington has pushed it to the limits in bullying China into making more concessions.

Washington's misconduct will not go unchecked. From China to Europe, from Mexico to India and Russia, those tariff tricks have paralyzed trade consultations, and reduced Washington into an object of resentment and retaliations.

The tariffs will render U.S. companies and citizens more price hikes, and result in choked domestic investment and consumptions. Wherever those trade conflicts evolve, the U.S. enterprises, its people and the economy will suffer.
 

SamuraiBlue

Captain
Well looks as if somethings are moving;

China Auto Sales Growth Weakens in June Amid Trade Battle
By The Associated Press

BEIJING — China's auto sales decelerated in June, adding to economic pressure on Beijing amid a worsening trade battle with Washington, an industry group reported Wednesday.

Sales of SUVs, sedans and minivans rose 2.3 percent in the most populous auto market, down from May's 7.9 percent growth, according to the China Association of Automobile Manufacturers.

That weakness adds to pressure on the economy as growth cools after the government tightened controls on bank lending to curb surging debt.

Beijing cut auto import duties from 25 percent to 15 percent, effective July 1. But it has imposed an additional 25 percent charge on vehicles imported from the United States in a worsening trade conflict with Washington.

SUV sales, usually one of the brightest spots for automakers, contracted by 0.5 percent from a year earlier to 738,000. Year-to-date sales were up 9.7 percent at just under 5 million...
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Basically an overall national debt of some estimating as high as over 20 trillion yuan or approx.30 trillion dollars US, things are going to start buckling when economy hits uncharted waters, with export the main source of revenue is hitting against high waves.
 

Equation

Lieutenant General
Well looks as if somethings are moving;




Basically an overall national debt of some estimating as high as over 20 trillion yuan or approx.30 trillion dollars US, things are going to start buckling when economy hits uncharted waters, with export the main source of revenue is hitting against high waves.

How does "over" 20 trillion yuan equals to about $30 trillion US dollars?o_O

When the current exchange rate is:
1 United States Dollar equals
6.67 Chinese Yuan

YES China is still ahead and out growing economically of Japan. ;)
 

Equation

Lieutenant General
LOL! favorable exchange rate "offered" by
SamuraiBlue

but his Yuan figure might be correct according to
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Still only: CN¥ 28
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(US$4.3 trillion), equivalent to about 41% of
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.

Have you seen Japan yet?:D

$10.46 trillion

The Japanese public debt exceeded one quadrillion yen or about US$10.46 trillionin 2013, more than twice the country's annual gross domestic product. By 2015, the figure rose to US$11.06 trillion.


Government Debt to GDP in Japan averaged 137.40 percent from 1980 until 2017, reaching an all time high of 253 percent in 2017
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Still only: CN¥ 28
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(US$4.3 trillion), equivalent to about 41% of
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.

Have you seen Japan yet?:D

$10.46 trillion

The Japanese public debt exceeded one quadrillion yen or about US$10.46 trillionin 2013, more than twice the country's annual gross domestic product. By 2015, the figure rose to US$11.06 trillion.


Government Debt to GDP in Japan averaged 137.40 percent from 1980 until 2017, reaching an all time high of 253 percent in 2017
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yep I would've thought the really large ratio in the case of Japan was well-known; not sure what
SamuraiBlue
was attempting LOL
 
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