Chinese Economics Thread

ansy1968

Brigadier
Registered Member
Just because he likes China doesn't mean that he won't put profits first, even if it harms China in the process. Still, a good relationship with Ray Dalio can't be bad. And considering its massive size, I suspect that even Trump would think twice before moving against him. A good relationship with Blackrock could single-handedly prevent decoupling between China and the US. Blackrock has $7 trillion in assets, even more than the PBOC. Crazy.
Hi SoupDumplings,

China had many friend in Wall Street and they know how politics is being played inside Washington.
 

hullopilllw

Junior Member
Registered Member
Just because he likes China doesn't mean that he won't put profits first, even if it harms China in the process. Still, a good relationship with Ray Dalio can't be bad. And considering its massive size, I suspect that even Trump would think twice before moving against him. A good relationship with Blackrock could single-handedly prevent decoupling between China and the US. Blackrock has $7 trillion in assets, even more than the PBOC. Crazy.

You are mixing up AUM and Asset.

Blackrock actually asset is around 160b vs PBOC's 3.21t.

And Dalio is Bridgewater's, not Blackrock.
 

ansy1968

Brigadier
Registered Member
I think the Chinese strategy is to stall disentanglement for as long as possible. If they followed with tit-for-tat retributions against the U.S. then they'd be playing into Trump's hands. This is contrary to the "ban Apple and Tesla" attitude we see from many members here.
Hi siegecrossbow,

Or an orderly decoupling, both China and the US is heading for a divorce, Its inevitable as the US is really hurt both on the health and economic issue. I think China is perfectly fine with the idea but it must be done gradually.
 

hullopilllw

Junior Member
Registered Member
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It won't because China does not want RMB to take on the cost of being the main world reserve currency(aka trade deficit). But it also doesn't need to be dominant to took down USD.

China only intended RMB, or DC/EP in the future, to be the preferred currency with major her trade partners.

Once USD get sidelined to below a certain percentage, it will disrupt the initial design to 1.recirculation substantial volumes of foreign-owned USD back into US financial market, 2.buying up T-Bonds to allow mass printing without domestic(US) inflation.
 

AndrewS

Brigadier
Registered Member
Hi siegecrossbow,

Or an orderly decoupling, both China and the US is heading for a divorce, Its inevitable as the US is really hurt both on the health and economic issue. I think China is perfectly fine with the idea but it must be done gradually.

From China's point of view, the Chinese economy is already larger in many ways and is expected to become much larger.

So if the US wants to decouple from China, theoretically the smaller economy will get hurt worse.
 

hullopilllw

Junior Member
Registered Member
Well China is planning for the long haul while the rest of the world isn't even bothering with it, especially the USA right now. Hence it won't be a surprise (as shown by the GDP growth just recently) if China continues to grow no matter how small this growth is while the rest of the world becomes more and more dependent on China for other goods (kinda like Walmart and Amazon with all the other small stores closing quickly). The US and Europe cannot take back manufacturing in this short time frame so they will bear most of the hurt and the USA can never begin there manufacturing base if they lack capital or anyone willing to work in a country that is very hateful to minorities. Also to note is that once people have upgraded there gadgets, there won't be much of an upgrade for a while, hence this will be a perfect time for China to ensure that there technology is more independent from the US so the US cannot mess with China as they are now.

US won't be getting any meaning manufacturing back.
1. You need will substantial investments to build up the basic infrastructures required to sustain the industrial complex. The ROI for these kinds of projects is never attractive for Wallstreet bankers who are addicted to Nasdaq. Huge federal funding is needed, possible to cut military spending
2. Lack of Americans willing to do manufacturing job, and this is especially true for the millennial gens and onwards. Then you have unions and minimum wages as icings. Is vocational training even popular in the US, as compared to France/Germany/Swiss?
3. Automation
 

Gatekeeper

Brigadier
Registered Member
I think we were discussing China's drive on food waste a couple of weeks ago. But now someone at CNN decided to pick it up and run it as another Big bad authoritarian China story!

This is the thing that china is constantly up against. It is little wonder China always get a bad press!


CNN headline:

In authoritarian China, eating freely is a cherished activity. Now a food waste campaign wants to control meals, too
By Ben Westcott and Nectar Gan, CNN
Updated 8:12 PM EDT, Fri August 28, 2020

Rest of the article:

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daifo

Captain
Registered Member
Do people in mainland China not take home unfinished dishes and eat leftovers? I've read that some Vietnamese take it as a status symbol to leave leftovers rather to take it home (to show you have $$ to waste), is it same for some folks in China?
 
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