Chinese Economics Thread

[ahho]

China will start trial payment in its new digital currency (called e-RMB) in four major cities from next week, becoming the first country in the world to launch a sovereign digital currency. The four cities are Shenzhen, Suzhou, Chengdu, as well as Xiong'an, a new area south of Beijing.

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This follows the steps such as currency swaps, CIPS, and Shanghai Petroleum and Natural Gas Exchange etc. to reduce reliance on the US $ for transaction use.

I really don't understand why the western news always state that the e-RMB is almost like a new currency, when it is just a new way to settle trade with RMB. This is just like block chain technology. When China (hell even other country central banks are doing it) is using new technology for commercial banks to settle their trade and balances, the western media kept saying that China is using crypto currency, when it is in fact just RMB settlement

 

[Rettam Stacf]

I really don't understand why the western news always state that the e-RMB is almost like a new currency, when it is just a new way to settle trade with RMB. This is just like block chain technology. When China (hell even other country central banks are doing it) is using new technology for commercial banks to settle their trade and balances, the western media kept saying that China is using crypto currency, when it is in fact just RMB settlement

The same reason why many of them still refer to e-RMB as a cryptocurrency - ignorance.

e-RMB is a digital version of China's offical currency, the RMB. Bitcoin is a cryptocurrency.

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[AssassinsMace]

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Maybe next they'll tell them not to sell oil to China and still expect China to abide by sanctions on Iran and Venezuela. Yes the US wishes the world stop doing business with China as the only way to stop China. That won't happen unless the US coughs up all the money other countries lose from not doing business with China. And China should keep that in mind because if that were to happen China can make the US have to cough up more. What country is not going to want more money from the US with the help of China. This kind of thinking is what led the Soviet Union to go bankrupt trying to keep up with the US that ended the Cold War.

 

[bajingan]

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The us wants to turbocharged moving supply chain out of China

Lol as if such things can be done overnight, it took decades for those supply chain to be established
And post coronavirus who has the money to do it?

 

[supercat]

China's car sales rebounded strongly in April, best in almost 2 years:

China Car Sales Rebound With First Monthly Gain Since 2018

Chinese monthly auto sales rose for the first time in almost two years after the country opened up for business again, fueling expectations of an industry recovery from the coronavirus.

Carmakers shipped 2 million vehicles to dealerships and stores in April, up 0.9% from a year earlier, the China Association of Automobile Manufacturers said in a statement Thursday. That’s the first increase since June 2018. Still, deliveries dropped about 32% in the first four months to 5.67 million units, according to the trade body.

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If China can keep up with 2 million sales a month for the rest of the year, it will be an annualized sales of about 20 million units, which is not bad at all. In comparison, the U.S., which was the largest auto market in the world previously, only sold 18 million or so units in its best year ever.

 

[PiSigma]

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Maybe next they'll tell them not to sell oil to China and still expect China to abide by sanctions on Iran and Venezuela. Yes the US wishes the world stop doing business with China as the only way to stop China. That won't happen unless the US coughs up all the money other countries lose from not doing business with China. And China should keep that in mind because if that were to happen China can make the US have to cough up more. What country is not going to want more money from the US with the help of China. This kind of thinking is what led the Soviet Union to go bankrupt trying to keep up with the US that ended the Cold War.

Lol except the Gulf don't really export much oil to US anymore. They aren't dumb enough to shoot themselves in the foot by pissing off their biggest customer. Haven't the US heard, oil is plentiful these days.this is really killing the petrodollar fast.

 

[tidalwave]

Lol except the Gulf don't really export much oil to US anymore. They aren't dumb enough to shoot themselves in the foot by pissing off their biggest customer. Haven't the US heard, oil is plentiful these days.this is really killing the petrodollar fast.

More like tell them not to use huawei.

 

[hullopilllw]

The same reason why many of them still refer to e-RMB as a cryptocurrency - ignorance.

e-RMB is a digital version of China's offical currency, the RMB. Bitcoin is a cryptocurrency.

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Precisely, its not even a crypto token and so many news sites are making it sound like THE YUAN BITCOIN blabla....totally ignoring Mu's explanation that DC/EP is merely a digitalised version of M0 money in circulation.

 

[hullopilllw]

Depend on country. In China it's probably 1/4 or less. US and UK probably 2/3 or more

I like how Chinese economists maintain that having a robust manufacturing sector is important as it is the 'real' physical economy, compared to being to dependent on service sector and monetory market which are essentially what the chinese refer to as XuHuang(virtual?) economy.

 

[hullopilllw]

T

The entire concept of trying to stump China by technological choke is stupid and it's more stupid because there are many Chinese students in the US and the West for them to witness first hand how Chinese STEM majors always perform at the top of their classes. It's like saying, "Let's get the largest cohort in the world consisting of the smartest, most result-oriented STEM graduates together in a group, and tell them that they can't be lazy anymore. Push their backs up against the wall and tell them they need to develop these things cus their lives depend on it." On top of that, China was given plenty of forewarning with the slow ramp-up and escalation of sanctions. Basically, it's so well set-up for China to succeed, it's almost like a designed training course rather than a serious attempt to derail. Only the toughest pressure can forge the hardest diamonds. These people will be forced to create world-beating technology. Had this happened when China was technologically very backward and too poor to train many STEM students, things would have been much tougher but in the modern day, this is set up perfectly for China to succeed because China already has the momentum of technological development in full swing, a vastly powerful economy for support, and an excellent educational base with more STEM graduates than the entire developed world combined to work with.

That's why US is in a huge dilemma, on one hand it hope China will remain an obedient developing nation that will remain a huge market for US technology to earn revenue and support R&D.
On the other hand, US do not want China to move up the tech value chain and challenge US. Both desires are contradictory since it is only natural that as a nation develop, she will seek to move up the tech chain, esp even more for a nation like China that have the prerequisite to be a a superpower, and her long hate for the selective containment(socially, technologically, ideologically) by the Western bloc since the 50s.

As a result what US essential want is a total control of the free market, making sure China MUST buy US tech products, BUT those that are not the latest gen. Yet China cannot develop on her domestic tech too, since it will be labelled as state-led initiative(forgo DARPA).

US only accept a free market in which US is the total winner.