Chinese Economics Thread


AssassinsMace

Brigadier
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No need for reset if they don't need China. They say if Biden wins, he's going to hold out for concessions from China if they want Biden to reverse Trump's actions against China. You mean just like how Trump is doing it now.... Concessions in exchange for going back to normal. If China is frustrating Trump now by not giving in, why would it be easier for Biden? China should hold out and demand all of Trump's actions be reverse before they even start talking. If they don't need China, no need to deal.
 

ansy1968

Junior Member
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No need for reset if they don't need China. They say if Biden wins, he's going to hold out for concessions from China if they want Biden to reverse Trump's actions against China. You mean just like how Trump is doing it now.... Concessions in exchange for going back to normal. If China is frustrating Trump now by not giving in, why would it be easier for Biden? China should hold out and demand all of Trump's actions be reverse before they even start talking. If they don't need China, no need to deal.
Hi AssassinsMace

Wow, its surreal, I thought the author on MarketWatch is a Chinese person, what a refreshing and honest view without the usual political bias coming from the western press. This pandemic really hit home the importance of China, Trump trade war is a failure, the American exceptionalism is a dupe. At least some people are humble enough to accept reality.
 

AssassinsMace

Brigadier
Hi AssassinsMace

Wow, its surreal, I thought the author on MarketWatch is a Chinese person, what a refreshing and honest view without the usual political bias coming from the western press. This pandemic really hit home the importance of China, Trump trade war is a failure, the American exceptionalism is a dupe. At least some people are humble enough to accept reality.
MarketWatch is shaky. They've spewed out pro-Trump non-sense before.
 

Gatekeeper

Captain
Registered Member
How serious is this Boycott China movement in India. India is serving as a testing bed to what could happen to Chinese goods in other countries. How serious is this?
China should be scared out of its mind..... not.

First of although India is a top ten export destination of China. It is, however relatively quite small. According to wiki (I know but for this it should be suffice) it's only US$68. The top three export countries alone amounted to over US $1,000. So one can see it's not going to make much of dent in Chinese suppliers.

As for test beds, well if the top three follow suits, it will have a significant impact. But test beds works both ways. What is up for test is not the impact on Chinese supply sides. But on the abilities of India (And others) to continue without Chinese imports.

And here's the real test. The West and India have tried to wean off Chinese suppliers, but are unable to do so for obvious reasons. They just won't be able to get alternative for the price and quality they demanded.

And this is where I think the West and particularly Trump is being disingenuous when they accused China of eating their lunch.

Because for the past thirty years, China's price and quality have actually given the world (particularly the West) a major boost to their own economic well being. It has provided the world with LOW inflation for the past thirty years because of the "China price"!

I remember as an undergraduate of economics. The world was preoccupied with battling with high inflation leading to stagflation (anyone get a chance have a look at how Mrs Thatcher famously cut a £5 nite in half to demonstrate the effect of inflation).

So for the past thirty years with the exception of the financial crash in between, the world was buzzing along thanks largely to "cheap" Chinese goods.

Indeed I remember having discussion with my tutor, and he said that the West is gaining wealth utilities at the expense of China.

At the time, I didn't know what he meant and ask for more explanation. He went on to say if China charges the market rate or just below. (Which it could) Then China's wealth would increase for the benefits of its people. At the same time, the West wealth utilities would decreased and inflation would not be thing of the past. With higher price, consumption and economic activities would decrease leading to a lower GDP growth.

But as it was, the control of the prices remained with western investors, and all they did was creamed the extra profits from the lower prices to the benefits of western nations.

So coming back as being test beds. Well the Indians and the West can't afford not to continue purchase from China. You don't have to look far, just look at the mess Trump got himself into with his EASY to win trade war!
 

Gatekeeper

Captain
Registered Member
USA is trying everthing to hurt China. It now warns the railroad retirement funds. Well if the retirement board can't tap into growth potentials, who's going to suffer?

"White House warns Railroad Retirement Board that its Chinese investments pose national security risk"

Rest of the link.

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plawolf

Brigadier
Shenzhen and Shanghai Index Up 2.72% and 1.27% respectively since opening today. Both are already way above pre-covid level.

Bubble?
Potentially, as you have a lot of foreign capital flowing to China right now to take advantage of the higher yields and better stability since China is the only major economy that has COVID19 firmly under control.

However, Chinese capital controls should make it much harder for the bubble to burst suddenly, as foreign funds cannot pull out very quickly, and Chinese market rules automatically suspend trading if there is too much volatility in share prices.

Foreign investment funds and short sellers will hate it, but pension funds and the like who are more interested in stable, long term returns will love it once they get a taste. That is a major reason for US intervention stop stop big American pension funds from investing in China. They are worried that once they get a taste of the Chinese market, that those pensions will never look back to invest the US stock markets again. Even Trump knows the importance of pension funds in helping to stabilise the American stock market and prevent it from becoming a swing machine tailored to short sellers, as would happen if major US pension funds invest elsewhere and investment firms further dominate the market.
 

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