Chinese Economics Thread

TD739

Junior Member
Registered Member
Hi TD739,

A very good summary, may I add my pieces.

It's all about going back to country side.

Its part of Poverty alleviation program and sustainability. Its a continuing process to make sure that the beneficiary not only enjoy economic benefits, but social service as well. Its a way to spread the wealth down to the lowest sector of society.
I think the importance of this is geopolitical. After covid 19, China now anticipate not only US but also alot of countries will go anti- China route.. The Wang yi humiliated visit to Europe few months ago already gives them a head up on that. So has many more EU countries decided to go against Huawei. This is the trend. Many countries have hardened their stances against China. China now said the hell with it , ready to take Taiwan even if it's means sanction from the west
 

horse

Major
Registered Member
So to clarify, does this mean dual circulation will
  1. Boost China's consumer class, thereby making China the largest consumer market in the world, especially after COVID-19 has decimated the large western markets of the world.
  2. Insulate Chinese tech companies from the tech war and trade war since because of 1), foreign nations wanting to withhold core components to Chinese firms eg semiconductors, EUV lithography machines etc are going to lose access (perhaps permanently) to the largest market in the world.
?
No.

Not in my opinion.

All dual circulation means is two things essentially.
1) import substitution, particularly in the domestic IC industry
2) strengthen trading relationships between BRI and RCEP countries.

What piece of data we got from that CCP news video is that consumer spending is 55% of GDP, compared to 70% in America. That means there is room for the consumer to grow into a bigger role in the economy.
 

manqiangrexue

Brigadier
Lol, newly added Britain, Sweden, Italy news are not fake news.
Italy did not ban Huawei so that's fake news. Sweden owns Ericsson so Huawei is not expected to make inroads there. The UK was/is devastated by COVID and has clearly lost rational thought. But this is giving too much weight and credit to these nations. Huawei's technology does not depend on them; their 5G depends on Huawei. Huawei continues to make the best product in the world and if these countries are ok with having connections worse than the 3rd world countries that work with Huawei, so be it.

However, it is an overreaction to say that any of these countries have a hardened stance against China. Their overall trade with China is still climbing while their relationship with the US is declining, which will certainly continue should Trump remain in office.
 

horse

Major
Registered Member
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Look at this salty western msm claiming that China rapid recovery is fake and fabricated, they can't accept that their "superior democratic system" can't even manage to control a pandemic and still in the middle of endless coronavirus waves and they got brexit on top of that lol
Is this article an example of ...

A) fake news
A) butt hurts
B) sour grapes
C) all of the above

I need feedback before I read the article. Thanks.

:D
 

TD739

Junior Member
Registered Member
The term fake news has been abused just like Trump using it to discredit opposing opinion.

Which country hasn't gone through covid19?

Also it's like saying because China has Huawei And ZTE so naturally expect to ban Ericson .
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hullopilllw

Junior Member
Registered Member
Current dual circulation is different than previously policies. It's not just boost of domestic consumption.

It's Xi's vision of going back to the root, going back to Mao's vision of country side surrounding of cities.
It's different than deng's open up and building up megacities.
On the contrary, the policy not only encourage people from country side going back from cities but also encourage city people going there. Like the former going up to mountain and going down to the field.
Build up of country side township economy. Have 3 or 4 products from each townships. Building up based on ecology.
That's why Xi's main focus is on poverty alleviation and build up of country side.

Stable country side economy will be the bedrock to support the cities amidst current global anti China atmosphere.

5 passes including high speed 5g and high-speed rail connecting country sides represent the investment the central government is investing in country side. High-tech farming

It's all about going back to country side.
Same times cities are consolidate into greater wide area or megaregion.

Dual Circulation Probably credit should be to Liu He. Out of the Politburo, he is the one with the most economy management experience and qualification. If you read their speech, his touches also more on the details of China's development while Xi's are more on geopolitical issues.
 
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