Chinese Economics Thread
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LightReading says that Samsung is considering purchasing Nokia Telecom so if they are now it might not be for long
Some of you may have seen this floating around...
Turns out it's total bunk. The real numbers look like this:
Yes, loss-making firms have gone up but so have the total.
A breakdown between SOEs and private firms:
SOEs are doing much better now but private firms are not. Overall, the share of loss-making firms has been stable between 15-20%. The immediate aftermath of the 2008 financial crisis is probably not a good guide, because the financial system was flooded with stimulus and cheap liquidity. Also worth noting that a big reason why private firms are doing comparatively badly is because of the real estate cleanup. This is not a bad thing. A lot of corrupt firms have to be flushed out.
Turns out it's total bunk. The real numbers look like this:
Yes, loss-making firms have gone up but so have the total.
A breakdown between SOEs and private firms:
SOEs are doing much better now but private firms are not. Overall, the share of loss-making firms has been stable between 15-20%. The immediate aftermath of the 2008 financial crisis is probably not a good guide, because the financial system was flooded with stimulus and cheap liquidity. Also worth noting that a big reason why private firms are doing comparatively badly is because of the real estate cleanup. This is not a bad thing. A lot of corrupt firms have to be flushed out.
I am not sure if OpenRAN was ever a serious idea, although it was pushed like one. I recall part of the problem was the software stack needed to implement it was way too complex; it would have made the base station way too complicated and thus expensive.
May be this is the way. Refinance and maybe some money printing?
Excuses. They accused 1980/90s Japan of the same thing.
US citizens consume more simply because the US runs on credit unlike most of the world.
Chinese citizens have high home ownership, car ownership rates which indicates that domestic consumption is perfectly normal.
US citizens consume more simply because the US runs on credit unlike most of the world.
Chinese citizens have high home ownership, car ownership rates which indicates that domestic consumption is perfectly normal.
Domestic consumption is definitely in the doldrums right now because of the real estate situation but it’s far from the apocalypse the Western press depicts it as. IMO it’s not a huge thing to worry about. Once the real estate situation is sorted out and Chinese industries continue to move up the value chain it will naturally accelerate again.
For my company, I know they have discussed China’s domestic consumption at the higher levels for a while now as well. The West is concerned about China’s domestic consumption because the overarching narrative in the West on China for a while now is that China’s market will see insane growth and import significant stuff from the West in the process. Many Western businesses after China opened up made their business plans assuming this would go on indefinitely. The drop in domestic consumption is important to the West because it indicates that Western businesses should pivot their business strategies away from China since growth there is no longer as certain.