Chinese Economics Thread


Temstar

Junior Member
Registered Member
It's just lip service, unless Australia actually abandons its current anti-china policies. Morrison can always claim it's just a coincidence that US interests aligns with Australian national interests.
It's true, have to watch what he does not what he says.

Nevertheless it's like haggling at the flea market - once the seller relents on his initial price and comes up with a counteroffer you know a deal can be made, it's just a question of where in the middle you meet.
 

cbl21

Junior Member
Registered Member
Please, Log in or Register to view URLs content!

New regional trade deals to help China ‘sustain its advantages’ in global supply chains
BEIJING — China is set to remain a key player in global supply chains, thanks to a combination of factors ranging from the coronavirus pandemic to new trade agreements.
Please, Log in or Register to view URLs content!
this month, forming the largest trade pact in the world.

Analysts predict the deal will increase the market size of Asia-Pacific, creating more opportunities for companies to produce and sell within the region.
In particular, the agreement pushes back against a protectionist trend that set up barriers against trade using measures such as tariffs, according to Michael Hirson, practice head for China and Northeast Asia, at consultancy Eurasia Group.
When implemented, RCEP would remove potential restrictions on sourcing products from China by putting the country in the same category as other members of the trade agreement. Such streamlining “helps anchor China in regional supply chains, serving as a potential counterweight to disruptions from trade tensions and the pandemic,” Hirson said in a note over the weekend.

More significantly, RCEP may help accelerate negotiations on other trade deals — such as the China-Japan-South Korea free trade agreement and a China-European Union bilateral investment treaty, Morgan Stanley’s chief China economist Robin Xing and his team said in a Nov. 18 note.
“These, if signed, would mark another move for China to mitigate risks from slowbalization, and sustain its advantages in global supply chains,” the authors wrote, referring to a term for a slowdown in the integration of different economies.

In particular, the pandemic has accelerated businesses’ adoption of digital tools to increase manufacturing efficiency, a trend which might not have happened as quickly without market pressure, Zhu said.
Such incorporation of technology with supply chains, or so-called digitalization, ties in with Beijing’s aim for higher quality development, as laid out in the
Please, Log in or Register to view URLs content!
that kicks off in 2021 and in
Please, Log in or Register to view URLs content!

Zhu expects that rather than considering the lowest-cost option for labor-intensive manufacturing, companies will turn more to capital-intensive production. This trend, she said, will help China increase its competitive edge in high tech.

Tech for factories
Min Wanli, chief executive and founder of investment firm North Summit Capital, said artificial intelligence can increase transparency between demand and supply, helping to boost efficiency and lower costs.
“I believe this crisis will
Please, Log in or Register to view URLs content!
,” Min said on Nov. 18 at CNBC’s annual
Please, Log in or Register to view URLs content!
conference in the Nansha district of Guangzhou, China. He was formerly chief scientist at Alibaba Cloud.

Some of the most innovative companies in China today are involved with improving warehouse efficiency and manufacturing.
For example, Beijing-based artificial intelligence company Megvii has made “supply chain Internet of Things” one of its three key areas of focus. The company announced in October the second version of its logistics operating system Hetu for warehouse management, and seven new AI-powered machines.
E-commerce platform
Please, Log in or Register to view URLs content!
has made same-day or next-day delivery a selling point for consumers, thanks to its technology-driven logistics network. The company is trying to sell its logistics services to other companies to use.
Ted Hornbein, director of China operations for Indiana-based Rea Magnet Wire, a wire manufacturing company, is less optimistic about the scale at which technology will actually transform Chinese factories.
“There’s a lot of peer pressure to go out and do this,” he said, noting that “a lot of it is digitization for digitization’s sake.”
While some automation is needed, Hornbein said it is not always practical for highly specialized manufacturing. Instead, he said Chinese and foreign companies alike are still going to be moving production from China to other countries to take advantage of lower costs.
China as an end market
As companies search for the most cost-effective option, analysts predict the shock of the coronavirus means businesses will
Please, Log in or Register to view URLs content!
closer to end markets, rather than relying on a sprawling chain of factories.
China stands to benefit in this way as well. The country’s economic recovery from the pandemic and likely rise as the world’s largest economy in just a few years means global businesses remain
Please, Log in or Register to view URLs content!
, and produce there.
“If you think about the (multinational corporations) that are currently in China, those that have very competitive products (which) compete with China products, you find that there’s less of a want or need to actually shift their supply chain,” Jasslyn Yeo, global market strategist at J.P. Morgan Asset Management, said on a call with reporters on Friday.
“It’s mostly those that are less competitive in their space,” she said. “Then you probably see a bit more of a shift in the supply chain, so there’s a bifurcation there.”

Coronavirus hits supply chains
China has been a global manufacturing hub for decades, with exports driving the bulk of its economic growth. However, rising costs of human labor and trade tensions have prompted some companies to move their factories away from China to other countries.
For its part, the Chinese government would like to shift the economy to relying more on domestic consumption for growth.
Then, the spread of Covid-19 this year in a global pandemic hit international travel and trade flows as authorities restricted business activity in an attempt to control the virus. Companies were forced to evaluate how well prepared they were for maintaining production.
The coronavirus has shown companies that if their supply chain is too long, they may run into some problems, Zhu Caihua, deputy director at the Ministry of Commerce’s Institute of Foreign Trade Research, said in an interview earlier this month.

For context, China is already more automated than France, will probably be #4 or #5 in industrial robotics and automation in a few years, and has the most "Lighthouse" factories.
 

sinophilia

Junior Member
Registered Member
It's just lip service, unless Australia actually abandons its current anti-china policies. Morrison can always claim it's just a coincidence that US interests aligns with Australian national interests.

The Australians are trying their hardest to be a bigger lackey/suck-up than Canada or the UK or even Japan. Look at how they suddenly tucked tail and pretended that none of the attempted bullying of the last few years happened as soon as they realized they lost their pseudo-white nationalist leader in Trump.

It's really quite pathetic and shows where their allegiances would lie if they had a hyper-nationalist in the White House again. They can never be trusted.
 

j17wang

Junior Member
Registered Member
Please, Log in or Register to view URLs content!

Piss off, I think China needs to foster a relationship with the major power of the region, Indonesia. I know Indonesia and China have had thier differences but china and indonesia can work on the basis of mutual respect. Australia has tried to bully both Indonesia and China in the past. China needs to show Indonesia it is serious about climate change (including transferring EV technologies). Australia is so morally bankrupt which is why they wont even sign on to reducing their emissions.
 

hullopilllw

Junior Member
Registered Member
It's just lip service, unless Australia actually abandons its current anti-china policies. Morrison can always claim it's just a coincidence that US interests aligns with Australian national interests.

There is actually nothing much China can do. Remember, the main crisis in the Western hemisphere today is caused by the ongoing relative rise of China ; a continuous deep sense of anxiety and desperation brought out populism in their collective population, a mechanism which is supposed to maintain their position of superiority over the rest of the world. Judging by their nature and past record, the sole option the West has is to contain China, otherwise the myth of their values being universal will be shattered and they will have to go through actual revolution to alter their 'best' forms of governance system'. Australia herself is tied to that train, no matter what their politicians can claim with their flowery, diplomatic language.

One side HAS to contain. The other side HAS to hit back.
 

hashtagpls

Junior Member
Registered Member
Please, Log in or Register to view URLs content!
This is called megaphone diplomacy; PM Morrison is trying to cater to the public press to make himself seem reasonable when he and his mob, under the blessing of a white supremacist White House heavily persecuted Chinese interests for the past 3 years.

No, the way this is resolved is first Australia needs to offer China something as a show of good faith, for eg rescinding the anti foreign investment laws targeting China and reversing anti china/anti BRI policies, they could also offer an apology for the Chinese journalists who were forcibly ransacked and spied on; they could allow Huawei some choice government contracts- in fact, i think the last one would go a long way as a sign of good faith.
Anything less than the above, and there's shit all to talk about.

Not that i care, i'm cashed up, ready to get myself some aussie stocks when china finally bans australian iron ore.
 

Top