Chinese Economics Thread


Tam

Captain
Registered Member
Why it called Shimamuran, he did not invent it, he just observed it, China had done it for millenium,. China grew its economic by trial error, failure and success, never a man called Shimamuro been an economic adviser, so, why, when China is on right track , there is suddenly someone claiming he understand everything good about China's economic ?
Roosevelt also did it too and did it first ahead of Shimamura. Wang Anshi might have did it first in the world, but his achievements are not very well known except among historical economic scholars where there are studies and writings on this subject, which enabled the Song to become very rich. And between Wang Anshi and Roosevelt, there is John Keynes. Much more recently there is also Richard Werner from Germany. So this monetary theory is continuously being fine honed and adapted to central banking theories.

This is the best theory to have for a country in a crisis, such as the US during WW2 and Japan just after the WW2. It allows for swift recovery and development (Japan, S. Korea, Taiwan, Singapore, and now China). Somehow lost to the West as the West reverts to neoclassicism economics.
 

Jura

General
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"the global value chain" now can feel it depends, rather fully, on whatever happens in China, well it's kinda obvious since for some time shops all over the world have been full of Made in China stuff
 

Jura

General
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"the global value chain" now can feel it depends, rather fully, on whatever happens in China, well it's kinda obvious since for some time shops all over the world have been full of Made in China stuff
... plus
Coronavirus: Vietnam lured factories during trade war, but now faces big hit as parts from China stop flowing
  • Vietnam became the destination of choice for firms looking to avoid trade war tariffs, but the coronavirus has left many cut off from their suppliers
  • The Southeast Asian nation is more exposed to China’s supply chain than any other country in region, research shows, with companies across the board set to take a hit

so follow the link
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if interested
 

Hendrik_2000

Brigadier
Yup exactly not only Vietnam but all so called alternative to China is suffering now because they all need Chinese supplier for their component So head or tail China is irreplaceable So much for the rubbing hand of China basher they think China will be toast if the Multi national out source it from the like of Vietnam or Bangla desh
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Coronavirus is drying up the supply chains of Southeast Asia’s factories
February 27, 2020
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Even as China pushes factories to reopen, the ripple effects of Covid-19 have already proved inescapable for manufacturers outside the country. Particularly hard hit is Southeast Asia, where industries that depend on China for raw materials are being hobbled as their supplies dry up.

In Cambodia,
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about 200 factories making mostly clothing will probably have to slow or cease production entirely due to a lack of raw materials. China—the world’s biggest textile exporter—provides
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of the materials feeding Cambodia’s garment and textile factories, according to the country’s association of garment manufacturers. Prime Minister Hun Sen
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the Chinese ambassador to send more materials by ship and plane so the industry won’t have to shut down.

Vietnam is facing similar situations
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and beyond, with China being a major supplier of steel and components for electronics. “Car, electronics and phone manufacturers are experiencing difficulty in acquiring supplies and materials due to disruptions from the virus,” an agency representing Vietnam’s manufacturing sector
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. Phone maker Samsung, which manufactures in Vietnam, is among the companies facing a
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. Even the furniture industry, which gets component parts from China, is
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.

In Myanmar, factories are reducing hours or pausing operations because of the reduced materials coming from China. “Besides garment factories, factories making shoes and bags rely on raw materials from China,” U Aye Thaung, chair of a committee representing an industrial zone in Yangon
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today. “Those that still have raw materials are operating so far, but factories that have run out have ceased operating.”
The stakes are greater than production delays. The livelihoods of factory workers in these countries may be at risk if the factories employing them aren’t able to resume normal business soon. In Cambodia, for example, the garment industry is the country’s biggest employer and provides
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.

The labor ministry said if the shortage of raw materials from China drags on, as many as 90,000 workers could see their jobs suspended by the end of March,
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. Workers in such situations may not have the savings to tide them and their families over until work resumes. Sen announced a plan for garment workers whose factories closed to receive 60% of the minimum wage, with 40% being the responsibility of the factory owners and 20% provided by the government.

How quickly firms in these industries recover may depend on their size, if they recover at all. “If you’re the big guys then no problem,” Liang Kuo-yuan, president of Yuanta-Polaris Research Institute,
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. “Yet if you’re the small and medium sized firms, you can’t hold out and then you face the issue of bankruptcy.” Vietnam’s central bank has
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to reduce, delay, or even eliminate interest payments to help companies dealing with losses from the coronavirus outbreak.
 

Hendrik_2000

Brigadier
I just watch this on streaming TV CGTN see you can overcome all kind of hardship if people work together and the backing of strong state to organize rescue Amazing nothing can beat the Chinese nation they will come out stronger after this virus epidemic. Hat off to the medic who is at the forefront of this life and death fight.

At 10 a.m. on January 23, Wuhan went into lockdown. This was done to stop a deadly virus from spreading further across the nation. It was one day before Chinese New Year's Eve, a major travel day for people planning to return home for the holidays. This documentary is dedicated to all those who've been battling tirelessly against the COVID-19 virus in order to keep the epidemic at bay. Their efforts in safeguarding humanity from the virus will always be remembered.
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Everybody pitch in and do what they can do to fight this virus
 
they admitted
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Yeah, if it didn't drop severely, then I would start to really question the accuracy of Chinese data. Everything except food (42) dropped to the 20's and 30's with manufacturing taking the biggest hits. That's about right for a country on a need-only basis to exit the house with the manufacturing hub in strict quarantine lock-down.
 

Jura

General
Yeah, if it didn't drop severely, then I would start to really question the accuracy of Chinese data. Everything except food (42) dropped to the 20's and 30's with manufacturing taking the biggest hits. That's about right for a country on a need-only basis to exit the house with the manufacturing hub in strict quarantine lock-down.
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comments on the demand side (among other things)
 

hydrogenpi

New Member
Registered Member

On one hand there is the so called AI revolution, what Yang liked to call the Fourth Industrial revolution. When machines can take over for mental as well as physical labor then outsourcing and offshoring will become redundant and this will deminish globalization. With advent of 3d printing, AI, etc local manufacturing will always win out... Eventually the complex system of global trade and JIT systems will give way to something else and this will invariable cause a great shift and decoupling between East/West, China/USA anyhow, even under the best of political relations...

On the other hand there are still problems with economies of scale both in terms of production and research. Only the major players, superpower nations can afford to invest and excel in AI to the extent needed to achieve self sufficiency... this is why US is trying so hard to curb China's tech rise/ascension, cutting edge technology is where the future is at, and there is no future for low wage low end cheap labor anymore when AI will reduce cost of all such manual labor to mere electric costs of running the machines! Therefore I don't see how India can hope to emulate the China model of going from low end labor to moving up the curve, AI will put a damper to that before it even starts!

This is why the USA is trying so hard to kill Huawei. Huawei represents the cutting edge and pinnacle of Chinese high tech right now. This would be a symbolic victory, a political victory as well as a strategic victory if America was able to paralyze Huawei and keep it down for good.

One way or another I see a US/China decoupling as inevitable. It is a matter of timing, on whose terms, and in which ways that will determine the fate of China and America into the future. Who stands to lose more from a rapid decoupling? By its actions so far, I believe America has placed the bet that an acceleration decoupling gives it better odds of coming out on top when it is all said and done.
 

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