Chinese Economics Thread

hullopilllw

Junior Member
Registered Member
I just wanted to add this. The source of this article is from the NZ Herald 2015

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he enormous farm at Mudanjiang City in north-east China will have 60,000 more cows than the current biggest dairy farm, also in China.
Russia wants the milk as it is boycotting EU countries’ dairy exports after Brussels imposed economic sanctions over the Ukraine crisis.
The farm is 50 times bigger than the biggest dairy farm in the UK – which has around 2000 cows – and three times bigger than the largest in the US, with 30,000 cows.
China’s Zhongding Dairy Farming and Russia’s Severny companies are behind the $241 million megadairy project.
Feed for the housed cows will be grown on 100,000ha, most of it in Russia.
Earlier this year, the EU extended economic sanctions because of Russia’s involvement in the Ukraine conflict.
In response, Russia prolonged its ban on foods from the EU, US, Australia, Norway and Canada, including milk products, until August next year.
Before the Russian ban, the EU exported about 300,000 tonnes of cheese – about 25 per cent of its production – to Russia annually.
Mansel Raymond, chairman of Copa-Cogeca, the umbrella organisation for European farmers, said the ban and the Chino-Russian dairy venture sent a worrying signal to Europe’s dairy farmers.
«The scale of Chinese investment in dairy production is vast. I wonder now whether we will ever get the Russian milk market back,’ he said.
«Building a 100,000-cow dairy farm is simply mind-boggling. If the 100,000 head represents milking cows, this unit alone could produce 800 million litres a year.
«In that case, it would equate to 100,000 tonnes of cheese – and that would mean this unit alone could produce about 30 per cent of our previous exports to Russia.»
Most Chinese people are intolerant of lactose, a sugar in milk, although it is growing in popularity in the country.


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Not only milk, cheese, and beef but also agricultural.

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supercat

Major
Banning U.S. government pensions from investing in China? Bring it on! BTW, anyone interested in investing in Kingsoft Cloud?
Global funds invest more in China as coronavirus spreads to the rest of the world
  • As U.S. stocks plunged to three-year lows in March, allocation to Chinese stocks among more than 800 funds reached nearly a quarter of their nearly $2 trillion in assets under management, according to fund flow data from EPFR.
  • “We’re finding that a lot of foreign managers globally (are) reshuffling their holdings in this turmoil,” Todd Willits, head of EPFR, said in a phone interview. “Allocations to China are something people are looking to increase.”
...

On Friday, May 8, Kingsoft Cloud became the first Chinese company to go public in the U.S. since the Luckin Coffee scandal and the coronavirus outbreak, which delayed some listings. Kingsoft Cloud shares have risen more than 40% in the three trading days since, and the cloud computing company has gained a valuation of $5 billion.
...

“Every decade we have a significant bull market in something,” he said, pointing to previous rallies in U.S. technology and Japanese stocks. “China is, even at lower levels of growth, going to be the dominant, the super majority driver of growth (over the) next 10 years.”
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hullopilllw

Junior Member
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Banning U.S. government pensions from investing in China? Bring it on! BTW, anyone interested in investing in Kingsoft Cloud?

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In the same manner, Chinese behemoth like CIC can withdraw from US FIRE market too. Lets not pretend that the world is not getting more and more vested in China. A good example are players like Singapore's Temasek and GIC sovereign funds with assets worth more than $1t USD, their largest foreign investment destination is Greater China.

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antiterror13

Brigadier
The issue is not whether China can produce dairy products like NZ can, but can China find alternative dairy products from other sources ? If China can, then NZ is vulnerable.

Just look at the many countries China can buy barley and beef from other than Australia (see Post # 11516).

or simply eat less beef and back to pork and fish ... very simple
 

antiterror13

Brigadier
I would say that imported dairy products would be classed as *luxuries*.
They're not part of the daily diet in China.

And remember that as of 2017, there were 12million cows in China compared to 5million in New Zealand.

So New Zealand is definitely vulnerable.

yeahhh but there are only ~5M people in NZ vs 1.4B in China ..... thats meaningless comparison

Also NZ cows are much more productive than China's
 

Gatekeeper

Brigadier
Registered Member
The US is 20 good years too late. If it was in 2000, China would easily buckle to the US demands ... like Japan in late 80s

It's a good job the war on terror got in the way. I remember hearing back then US had plans to tackle China like they did Japan before China got too big to handle. Then come 9 11 and the war on terror which took so much of the US time effort and money, and they needed China as an ally. So China just grew quietly in the background, and the rest is history.
 

hullopilllw

Junior Member
Registered Member
It's a good job the war on terror got in the way. I remember hearing back then US had plans to tackle China like they did Japan before China got too big to handle. Then come 9 11 and the war on terror which took so much of the US time effort and money, and they needed China as an ally. So China just grew quietly in the background, and the rest is history.

It is said that the Middle East 'saved' China 2 times.

First time is as you mentioned, 911 right when the US is pondering whether to rekt China's economic development.

Then after Lehman Crisis, the US feels really uneasy that only China can fund the Wallstreetsand automakers bailouts. Something is out of place. Comes 2010, China's industrial output officially surpassed US', a feat no nation(not Germany, Japan nor Soviet Union) have ever succeed at in the past 120 years.(CIA is the first entity to take note of that)

Right when Obama and Hillary is just starting the China-containment pact known as "Pivot-To-Asia/Indo-Pacific Strat predecessor", US started pushing Philippines admin to clash at seas with Chinese and Vietamese fishing boats to create tensions knowing there is a long running unresolved territorial disputes. the Arab Spring occured, and US switched her focus back to to Middle East, using all her propaganda tools like FB/Twitter to topple all the admins that does no bend down to US foreign policies(Egypt/Syria/Libya). The unrest leads into growth of ISIS that forced US Army to return back to Middle East.

Note now this part is what I learnt from the speech of Prof. Jin Chang Rong of Renmin University :
By 2011/2012 the then Hu Jin Tao admin already sense the incoming danger/omnious(as proven true later by 2018 US trade siege ), and so to avoid a direct clash at the Eastern frontier of China, they come out with a rough idea to turn towards empowering trade networks thru the Western side of China. Building on their huge list of previous civilian-cooperation efforts, gov-to-gov economic agencies, and calling in Chinese firms that are already successful in establishing trade networks along the eurasia landmass, the Hu admin have them prioritied, pump into some serious diplomatic efforts to turn them all into a transcontinental scheme to be left at the hand of new upcoming Xi Admin. The scheme described above is known today as The Belt Road Initiative. ( Nowadays you often hear Xi talking about "shared future for mankind", it actually is coined by Hu Jin Tao
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)

US admin, under Trump, finally wake up in 2017 to realise that the 4 years Belt and Road is essentially a preemptive move to offset the effect of Obama's economic, social and military containment effort. The Quad, what changing Asia-Pacific into Indo-Pacific, you know all those later. ( CTTP is also an economic pact aimed at curtailing China's tech development while also isolating her from South East Asia, it is spearheaded by Japan and greatly support by Obama. In a certain sense, Obama is actually a very capable geopolitical player and one that is way more cunning than the current admin.)

And oh on South China Sea. China in 2012/2013 ? decided to stop turning a blind eye to Malaysia's and Vietnam's decades of sea filling efforts in the disputed area. Sensing trouble as Philippines started stirring issues, Beijing send in their ships, formally leveling the playing field of the island reclaiming game. Turns out China refill more land area in 2 years than what other's combined in the last 4 decades. The smaller players cry foul and the rest is history...
 
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