Chinese Economics Thread
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AssassinsMace
Lieutenant General
Economically speaking China will go through a rejuvenation after the coronavirus outbreak is over. The traditional doom and gloom naysayers don't want it to happen because they want China out of the picture. But China is just too big. Every time I read about the economic costs of the coronavirus, it's always in terms of loss to others due to Chinese economic inactivity. Even in anti-China Vietnam their two-faces are exposed in loss of tourism dollars from China. Samsung which outsources end-production of smartphones to Vietnam are getting hit because they can't get the parts they need out of China meaning Vietnam can't make those parts. And don't believe all that nonsense they're going to move production out of China. The naysayers want to believe where corporations outsource, they do it as a humanitarian gesture giving people jobs hence why they always think they can use that leverage. No it's simply the cheapest place for production so these corporations can make every penny they can. If they don't, their stock value drops and these days that's more important to CEOs. Having the cheapest labor doesn't automatically mean cheaper costs. That means if they choose to move out for any reason, it's going to cost them more.
Supply chain and manufacturing move to places where they are most cost efficient and is a long costly and carefully planned process. From building factors to training staff and the required infrastructures and eco systems to run smoothly. And then have to take into account the ever changing geopolitical situation , the social and political stability of the host countries and the unpredictable Trump's handling of countries exporting products to the US. And lastly do they really want to leave the Chinese market if they can sell in China too?
So saying that the coronavirus is moving supply chains out of China is not correct as claimed by one media I read. If indeed some are moving, they would have planned them long ago. That's business, nothing to do with virus.
So saying that the coronavirus is moving supply chains out of China is not correct as claimed by one media I read. If indeed some are moving, they would have planned them long ago. That's business, nothing to do with virus.
One of the things that need better notice about Chinese history that economic ideological battles are not recent or modern in Chinese history, but they go all the way back over a millennia.
One of the most pronounced and most profound is the reforms of the Chancellor Wang Anshi vs. the famous scholar and historian, Sima Guang. Sima Guang led the Conservative wing in the Song court. Wang Anshi essentially created and executed Keynesian economics in Song China, with economic reforms that sound surprisingly modern in today's context, while Sima Guang opposed these reforms. Perhaps the first Left and Right wing split of any government in the world?
One of the most pronounced and most profound is the reforms of the Chancellor Wang Anshi vs. the famous scholar and historian, Sima Guang. Sima Guang led the Conservative wing in the Song court. Wang Anshi essentially created and executed Keynesian economics in Song China, with economic reforms that sound surprisingly modern in today's context, while Sima Guang opposed these reforms. Perhaps the first Left and Right wing split of any government in the world?
Most mainlanders find the CCP more than satisfactory. Kinda happens when the government is competent and helps the people.
Going to put this link here for future reference. I suggest people should read what Shimamuran economics and the creation of the Investment Credit Creation economy. Both Japan and China are using models of this, as well as Taiwan, Singapore and South Korea. Note that this article is done in 2013.
Western economies and politicians however, don't get it.
I would say the last sentence is going to apply very well in the coming weeks and months for China.
The next is beautifully said.
Western economies and politicians however, don't get it.
I would say the last sentence is going to apply very well in the coming weeks and months for China.
The next is beautifully said.
Why it called Shimamuran, he did not invent it, he just observed it, China had done it for millenium,. China grew its economic by trial error, failure and success, never a man called Shimamuro been an economic adviser, so, why, when China is on right track , there is suddenly someone claiming he understand everything good about China's economic ?
It's not just the low costs in China.
It's also how China is the largest market for most categories of goods and services.
And given that it now looks like a self-sustaining global pandemic, who is to say that Vietnam, India, etc won't end up in the same situation.
manqiangrexue
Brigadier
When life gives you lemons...
New Chinese billionaires outpace U.S. by three to one - Hurun
"China minted three times as many new billionaires than the United States in the past year, with fortunes made in drugs and online entertainment after a mini-boom from the coronavirus outbreak, a ranking of the world's wealthiest people shows. "
"The Greater China region, including Hong Kong and Taiwan, created 182 new billionaires in the year to Jan. 31, taking its total to 799, according to the 2020 Hurun Global Rich List released on Wednesday. That compares with 59 new U.S. billionaires. "
""China today has more billionaires than the U.S. and India combined," said Rupert Hoogewerf, founder and chairman of the Hurun Report, which counted 629 U.S. billionaires and 137 in India. "
"Despite the U.S.-China trade war, Ren Zhengfei, founder of Shenzhen-based telecoms giant Huwei Technologies [HWT.UL], blacklisted by the U.S. government, saw his personal wealth grow 7% to $3 billion, roughly on par with that of U.S. President Donald Trump."
"Beijing is the world's billionaire capital for the fifth year, with 110 billionaires, against 98 in New York. Shanghai overtook Hong Kong to claim third spot."
New Chinese billionaires outpace U.S. by three to one - Hurun
"China minted three times as many new billionaires than the United States in the past year, with fortunes made in drugs and online entertainment after a mini-boom from the coronavirus outbreak, a ranking of the world's wealthiest people shows. "
"The Greater China region, including Hong Kong and Taiwan, created 182 new billionaires in the year to Jan. 31, taking its total to 799, according to the 2020 Hurun Global Rich List released on Wednesday. That compares with 59 new U.S. billionaires. "
""China today has more billionaires than the U.S. and India combined," said Rupert Hoogewerf, founder and chairman of the Hurun Report, which counted 629 U.S. billionaires and 137 in India. "
"Despite the U.S.-China trade war, Ren Zhengfei, founder of Shenzhen-based telecoms giant Huwei Technologies [HWT.UL], blacklisted by the U.S. government, saw his personal wealth grow 7% to $3 billion, roughly on par with that of U.S. President Donald Trump."
"Beijing is the world's billionaire capital for the fifth year, with 110 billionaires, against 98 in New York. Shanghai overtook Hong Kong to claim third spot."