Chinese Economics Thread


free_6ix9ine

Junior Member
Registered Member
Accompanying high tech, I think china urgently needs to invest in boosting the productivity of the average person which leads to an increase in income which leads to increase in domestic demand. Some ideas:

1) Free Technical skills program for migrant workers

2) Provide Micro-loans for small entrepreneurs in rural areas

4)Government job guarantee for unemployed workers. Ie if you can't find a job. The government will hire you to work on infrastructure construction. Wages will be low, so private sector can compete.

5)Invest in new service industries that can sponge up unemployed workers.

Just a few policy ideas.
 

free_6ix9ine

Junior Member
Registered Member
Definitely

I'm on board with this idea as well. Housing cost is a massive expense for the average person. Most of this expense is income for the rich or upper class (rent and asset appreciation), the upper class tend to spend less proportion of their income.

A great way to boost the income of middle to low income people is to provide free housing. Instead of spending thousands a month paying landlords rent, people can spend this money on high tech goods like Huawei phones, etc. Which boosts our high tech industry.

China needs to redirect spending and investment that fuel real estate bubbles into high tech.

Nationalizing at least a portion of the housing industry in China would go a long way to help boosting consumption and high tech.
 

LesAdieux

Junior Member
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What makes Iron ore any different from soybeans? It's not rare and there are other sources. Yeah that's why Western countries are worried over China's Belt and Road. The more other countries get their economies going, the less power and money for them. It's the same as when Obama rang the alarms bells over Made in China 2025. Western countries were worried that if China developed domestic sources of technology, China wouldn't be buying from them. They don't want others getting into the game so that they can make all the money.

China has plenty of low grade iron ore reserves, some 45 billion tons, China used to be self-sufficient, but iron mills prefer high grade australian ore, it's more efficient and costs less. the large demand for iron ore wont last forever, when China's construction comes to the end, China wont need that much of it anymore, iron & steal can also be recycled.
 

free_6ix9ine

Junior Member
Registered Member
China has plenty of low grade iron ore reserves, some 45 billion tons, China used to be self-sufficient, but iron mills prefer high grade australian ore, it's more efficient and costs less. the large demand for iron ore wont last forever, when China's construction comes to the end, China wont need that much of it anymore, iron & steal can also be recycled.

I find it hard to believe we can't find iron ore from other countries. Its literally one of the most common elements in the earth crust. I want China to crush Australia once and for all.
 

Xsizor

Senior Member
Registered Member
I find it hard to believe we can't find iron ore from other countries. Its literally one of the most common elements in the earth crust. I want China to crush Australia once and for all.
Australia won't use it. Just like China doesn't use rare earths as a weapon.
It is a last stand weapon ( in a Sino-Australian economic war)
 

free_6ix9ine

Junior Member
Registered Member
Australia won't use it. Just like China doesn't use rare earths as a weapon.
It is a last stand weapon ( in a Sino-Australian economic war)

Why is it even a weapon? I can't imagine Finding a new source of iron ore will be more difficult than trying to replacd US tech from China's chip industry. I'm sure Africa or South America will gladly take Australias place.
 

free_6ix9ine

Junior Member
Registered Member
Problem is you can't just copy Singapore housing development model. If it could be done, China would have done it years ago.
Singapore is just a city state with a small where the large portion of permanent population or citizens can enjoy subsidized housing. If do that , say in Shenzhen, there will be 1 billion application for subsidized housing !


This is not a radical idea by any means and actually has precedent in China. I believe prior to the 1990s, most city residents lived in government built housing that was allocated to people for free. There was no such thing as rent. Obviously cities population have drastically increased so it may not feasible now. However there is an argument to made that empty apartments litter China's cities which are held as investments by the wealthy. The government should step in and make this inventory available to lower housing costs.
 

muddie

Junior Member
Why is it even a weapon? I can't imagine Finding a new source of iron ore will be more difficult than trying to replacd US tech from China's chip industry. I'm sure Africa or South America will gladly take Australias place.

It's not a weapon because iron ore isn't rare or difficult to procure at all for China, especially given China's influence in Africa.

Only Australia is saying its a weapon and that article is written from Australia's point of view. The truth is Australia has very little leverage over China given they are an export country and everything they export to China is easily replaceable.
 

AndrewS

Major
Registered Member
This is not a radical idea by any means and actually has precedent in China. I believe prior to the 1990s, most city residents lived in government built housing that was allocated to people for free. There was no such thing as rent. Obviously cities population have drastically increased so it may not feasible now. However there is an argument to made that empty apartments litter China's cities which are held as investments by the wealthy. The government should step in and make this inventory available to lower housing costs.

A property tax would be a solution.

So empty properties start costing money, and the owners will have to start renting them out.

It also weans local government from land auction income, where the incentive is higher land prices.
And provides a stable income stream from property owners, who will hold the local government a lot more accountable for spending.
 

solarz

Brigadier
There's just no good reason to try to keep Shanghai, for instance, constrained.

This tells me you have no idea what you're talking about.

Shanghai is constrained by the fact that its surrounding lands all belong to other provinces. It has been trying to expand, but the administrative work required takes years if not decades. That's why it's even dredging the sea to create land! You think they'd go through all that trouble if they could get land from the neighboring provinces?
 

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