Chinese Economics Thread

Bellum_Romanum

Bellum_Romanum

Brigadier
Registered Member
https://twitter.com/i/web/status/1374567077789364227

The header and the content of the article link on the this Twitter says it all between Chinese investments vs American investment priority. Also, I don't know if it's already discussed or read but you guys/gals should read this article and the just released book

The Uses and Abuses of Weaponized Interdependence​

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There's a very important piece of information mentioned on this podcast at around 5:00 min mark onwards that I wasn't aware of regarding the equipment used for diplomatic cable.
 
B

B.I.B.

Captain
hkbc said:
Thought for the day! China should troll the West and setup a 'Rare Earths finishing plant' in Xinjiang where all Chinese rare earths are shipped from inner mongolia to be 'processed' before export and watch the sanctions double standards flow........
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They have the best spin doctors.
 
W

weig2000

Captain
Oldschool said:
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This is significant.

My understanding is China made sure the transaction successful first in China before going through SWIFT internationally. Preempting US from freezing that transaction.

In another words money in the pocket first.
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This is very interesting. I thought every single dollar transaction (or at least above a certain amount) goes through the US payment and clearing system. If you can consolidate all the local transactions first before settling the net transactions through the US system, then you can shield a lot of dollar transactions occurring locally, say, within a country.

Can you actually do that without the US permission? Does anyone know?
 
B

B.I.B.

Captain
kentchang said:
China is buying Australian iron ore to make even more money for Chinese companies and the Australians exporting the other products are still losers.

There is Russia and Mongolia for high quality coal, iron, and LNG. African mines where Chinese firms have controlling interest won't be online for a few more years (until the railroads are built). With an FTA and RCEP, China really cannot do much more before violating the letter of the treaties. Previously with Japan and Korea, China only had WTO obligations.

Until China relinquishes its role as world's factory, Australia will be at China's mercy as there are no other downstream markets large enough. Sudden breaks are not good for anyone and makes relationships harder to repair so slow boiling Australia is a sound strategy. In the case of iron ore, it would be a lose-lose situation so why do it. China has already issued its ultimatum publicly with the 14 Demands so China's position cannot be changed without losing its credibility so perhaps it will take regime change in Australia.

New Zealand was not part of the most recent denunciations of Hong Kong. Of the four Anglo countries left, Australia is by far the weakest and perfectly sized to make an example of. Time is on China's side and less they do overtly, the better.
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Recently Aussie politicians and media have suggested that 5eyes be referred to as 4eyes because NZ is not seen to be " singing from the same songsheet"
 
H

hkbc

Junior Member
weig2000 said:
This is very interesting. I thought every single dollar transaction (or at least above a certain amount) goes through the US payment and clearing system. If you can consolidate all the local transactions first before settling the net transactions through the US system, then you can shield a lot of dollar transactions occurring locally, say, within a country.

Can you actually do that without the US permission? Does anyone know?
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It's netting so essentially Chinese institutions does clearing domestically and then for example the PBOC submits a consolidated transaction, the US can choose to accept or reject that transaction but they can't dump on just the transactions from say ACME Xinjiang, Inc. If the US wants to just ban China from using the US dollar like its done with Iran it obviously can but they will have to face the consequences in financial markets, if you announce that you can't use USDs with the world's largest trading/manufacturing nation then people will just use something else end of the day people/countries need goods not worthless bits of paper with faces of dead presidents printed on them.
 
W

weig2000

Captain
B.I.B. said:
Recently Aussie politicians and media have suggested that 5eyes be referred to as 4eyes because NZ is not seen to be " singing from the same songsheet"
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Well, in a few years the Aussie will also be out of tune with other 3eyes, if China continues to put it in the dog house. In fact, in the latest sing-along of Western solidarity on Xinjiang, it appears that Aussie and NZ are banding together with somewhat different tune.
 
Jiang ZeminFanboy

Jiang ZeminFanboy

Senior Member
Registered Member
https://twitter.com/i/web/status/1374728757446074372

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S

SilentObserver

Junior Member
Registered Member
ILikeChina said:
https://twitter.com/i/web/status/1374728757446074372

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The idea of China's real growth being 2-3% came about a few years ago. It's based on Li Keqiang's index of using electricity/coal consumption, steel production, and rail volume as a measurement of economic health. A few China observers took this index to imply the overall economic growth was around 3%. As we all know China made a big shift towards tertiary sectors and high tech that consumes less physical resources for each GDP dollar produced.

Using this index as a measure of GDP growth reflects an outdated view of China's economic structure.
 
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