Chinese Economics Thread

Gatekeeper

Brigadier
Registered Member
Nah. Boris is trying to avoid the same fate that Morrioson had suffered. He just a charlatan. He's a disgrace. Have gotten us out of the single biggest trading block in the world. He's saying anything to please anyone that listens.


How China is devastating Australia's billion-dollar wine industry

By Ben Westcott, CNN Business

Updated 1526 GMT (2326 HKT) February 18, 2021

Melbourne, Australia (CNN Business)South Australian winemaker Jarrad White spent almost a decade building his business in China. Then, in a matter of months, it all fell apart.

It had nothing to do with the quality of White's wines at his vineyard in McLaren Vale, one of South Australia's premier winegrowing regions. Instead, it was the result of months of worsening diplomatic frictions between China and Australia.

White lived in Shanghai for several years, setting up a network of distributors to sell his Jarressa Estate wine to the booming Chinese market, where demand for foreign wines among the middle class was growing fast.

By mid-2020, more than 96% of Jaressa Estate's wines were being sold to consumers in China, up to seven million bottles a year. But in November, Beijing announced crippling tariffs on Australian wine as part of an "anti-dumping investigation" into whether those wines were being sold too cheaply in China. The government said the probe was prompted by complaints from Chinese wine producers.

White says he hasn't sold a single bottle since.


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AssassinsMace

Lieutenant General
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Boris johnson said he was “fervently Sinophile” and determined to improve ties “whatever the occasional political difficulties”.

Does britain about to turncoat on the us? lol
So much for quad solidarity
Right now australia must feel like complete and total moron haha
What's that called is the G7 meeting didn't go as Boris would've liked meaning a gang-up against China like he was proposing. Now the Trump sycophant turned Biden sycophant is now playing China sycophant.
 

bettydice

Junior Member
Registered Member
Nah. Boris is trying to avoid the same fate that Morrioson had suffered. He just a charlatan. He's a disgrace. Have gotten us out of the single biggest trading block in the world. He's saying anything to please anyone that listens.
Morrison had suffered nothing. It's some Australian industries that suffered, and Morrison would not care. He is living a comfy life.

What the ruling class of Anglosphere is after isn't national economic prosperity, but their domination of the world. As long as they keep their hegemony and rule the world, economy is meaningless to them. If you are a ruler, you wouldn't need money.
 

bajingan

Senior Member
Morrison had suffered nothing. It's some Australian industries that suffered, and Morrison would not care. He is living a comfy life.

What the ruling class of Anglosphere is after isn't national economic prosperity, but their domination of the world. As long as they keep their hegemony and rule the world, economy is meaningless to them. If you are a ruler, you wouldn't need money.
China should sanctions morrison and co like it did pompeo and 23 other trump officials
That way they and their families will suffer the personal costs of antagonizing China thus serves as a deterrent for other wannabe us deputy sherrifs
 

emblem21

Major
Registered Member
Morrison had suffered nothing. It's some Australian industries that suffered, and Morrison would not care. He is living a comfy life.

What the ruling class of Anglosphere is after isn't national economic prosperity, but their domination of the world. As long as they keep their hegemony and rule the world, economy is meaningless to them. If you are a ruler, you wouldn't need money.
He isn’t suffering now, but he will most definitely suffer later when China does the same thing they have done to Pompeo, Ted Cruz and Marco Rubio with real sanctions designed to destroy any possibility of employment in the future and maybe even go after his pensions as well to really destroy the guy. I believe that the business world in Australia will be more than happy to help considering the damages done because of this suck up.
The ruling elites of the Anglo Saxon world are going to be next once the USA meets its ultimate downfall, it is a mere matter of time and once that happens, China is going to take there time to completely destroy these lapdogs from the face of the earth. I hope that the vaccine that idiot took actually has complications since he is growing too arrogant and isn’t paying enough for his retarded behaviour. Hmm and the rest of his kind need to disappear for good
 

Temstar

Brigadier
Registered Member
What's that called is the G7 meeting didn't go as Boris would've liked meaning a gang-up against China like he was proposing. Now the Trump sycophant turned Biden sycophant is now playing China sycophant.
First UK tried to get Australia, India and South Korea to join to form the D10 as a counter to China. Italy piped up and basically said "hey what the hell are you doing? You're trying to form an anti-China alliance or something? If Australia joins I'm out".

So then the D10 idea was dropped and at the G7 meeting they pretty much avoided talking about China and instead wasted time saying things like "yeah we should all agree we need to vaccinate everyone across the globe against COVID-19. No we're not donating any of our vaccines, we need them."

Then Merkel piped up at the meeting and said "you know I think we should increase cooperation with China" and there was awkward silence.

And now this.
 

KYli

Brigadier
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China’s Yield Appeal Catapults Yuan to the Global FX Big League

(Bloomberg) -- The Chinese renminbi’s accelerating transformation from a sleepy backwater of the foreign-exchange market into a currency fit to rival global peers has traders setting aside concerns about how much further it can go without reform and buying into its ascent.

In London -- the world’s center of foreign exchange -- there’s more yuan changing hands than ever before. Options on the Chinese currency exceed those referencing the Japanese yen, and buying or selling the yuan is now as cheap as trading the British pound. Against this backdrop, there are signs the renminbi is playing an increasingly larger role in influencing broad dollar moves, according to Wells Fargo & Co.

There have been many false dawns in China’s quest for the yuan to challenge other major currencies. But underpinning the explosion this time lies a torrent of capital flowing into China’s markets, fueled by a frantic search for returns with over $14 trillion of debt globally paying less than 0%.

That appetite for some of the highest-yielding government bonds in the Group-of-20 countries has elevated interest in China to fever pitch and is generating demand for liquidity from investors looking to finance and hedge their investments. It’s also spurring volatility and attracting speculators who overlooked the market for years.

“It’s certainly a top currency in terms of the flow that we’re seeing,” said Kevin Kimmel, New York-based global head of electronic FX at Citadel Securities, one of the world’s biggest market makers. “Trading activity in the yuan has increased significantly.”

The shift comes as China continues to relinquish control -- albeit slowly -- of its tightly-managed currency, a linchpin of Beijing’s long-term plan to encourage its greater global use. The so-called internationalization of the yuan is part and parcel of the government’s goal to wean itself off a reliance on the U.S. dollar, and what some see as a geopolitical challenge to the greenback’s supremacy.

For now, international investors are encouraged to use the offshore version of the currency, known by its CNH designation in markets.

While the offshore yuan is theoretically freely tradeable -- meaning its price can fluctuate along with demand, economic data and geopolitical developments -- it usually sticks fairly close to the onshore unit, abbreviated as CNY. And since that’s permitted to stray just 2% above and below a daily rate set by the central bank, China holds sway over the currency far beyond its borders -- a quirk that may ultimately slow adoption.

Growth Spurt

Still, despite the limits, average yuan turnover in London jumped to a record $84.5 billion per day in October, according to a central-bank survey of the world’s biggest FX trading hub. In North America, daily volumes more than doubled compared to the same reporting period last year, to $7.8 billion per day. Exchange giant CME Group Inc.’s EBS says spot volumes on its platforms in London and New York are up 90% and 131%, respectively, from 2015 to 2020.

Along with this growth in the spot market, there is also buoyant demand from investors for instruments to hedge and trade their currency risk. Daily option volumes on the yuan in London rose to a record $11.7 billion in October, while an average of almost $12 billion of forward contracts changed hands each day, the most since 2019, according to Bank of England data.

“It’s been the intention to allow the currency to float more freely in the market,” said James Hassett, Singapore-based co-head of global emerging markets and G-10 linear FX at Barclays Plc. “That’s giving people more confidence to trade it.”

At the heart of this metamorphosis are foreign funds, which have steadily poured cash into China over the past year, adding to their bond holdings at the fastest pace on record in January. Many are chasing higher returns -- China’s 10-year bonds yield 3.3%, compared with around 1.3% for equivalent U.S. Treasuries and less than 0% for German bunds. Others are adding to their holdings to build exposure to the nation’s assets, which were only recently included into some of the world’s biggest benchmark indexes.

Amid this shifting landscape, market gauges show the offshore yuan’s projected price swings over a one-month horizon are now as wide as for the euro and the yen. While that’s partly a function of fluctuations for those major currencies dropping in the face of unprecedented central-bank action, yuan volatility is drawing in hedge funds and other fast-money investors looking to make a profit.

The extra liquidity has helped drive down the cost of transacting in the yuan to about $20 for every million dollars traded, according to Citadel Securities’ Kimmel. That’s similar to the pound and compares to about $10 for the euro-U.S. dollar cross, the world’s most liquid pair. It’s well below the spread on emerging-market currencies, which “typically exceed” $100 per million, he said.

The question is whether all this interest in the yuan can last, particularly if yields climb in developed markets like the U.S., ultimately diminishing the relative appeal of China. Some of the world’s biggest banks are betting demand will remain, with the likes of Deutsche Bank AG and Citigroup Global Markets Inc. boosting their China-dedicated personnel in hubs including London, New York and Singapore.

The moves echo HSBC Holdings Plc’s call last year for the yuan to be included in the top tier of foreign exchange. The classic Group-of-10 FX label -- which includes smaller Scandinavian currencies in addition to behemoths like the dollar, euro and yen -- is “outdated and misguided,” strategist Paul Mackel said.

Despite its still-small share of global trading -- 4.3% as of 2019, according to the latest data from the Bank for International Settlements -- the yuan commands an outsized role in the foreign-exchange market because its daily moves serve as a key indicator of global investor sentiment. Wells Fargo strategists including Erik Nelson argue that the Chinese currency may even be exerting influence on the broad dollar index.

‘Paradigm Shift’

The offshore yuan may be “pulling more weight in the battle for global currency supremacy,” the strategists wrote in a note to clients this month. “If we continue to see signs that USD/CNH is having more influence on broad dollar moves, this could be a significant paradigm shift in FX markets,” they wrote.

Yet Beijing’s ambitions to make the yuan a truly global currency still face some very real challenges.

The currency’s share in central bank reserves is just about 2%, compared to almost 21% for the common currency and just over 60% for the U.S. dollar. That’s a woefully low percentage given the size of its China’s economic output. At less than 3%, the renminbi’s share in global payments is just a fraction of its bigger rivals, despite increased use.

But it’s the age-old issue of restrictions on the movement of capital across Chinese borders that remains one of the biggest headwinds the currency faces, according to Bipan Rai, head of foreign-exchange strategy at Canadian Imperial Bank of Commerce in Toronto.

“China has made a lot progress on this front, but it’s still not quite at the level of free capital flow that you tend to see in other developed markets,” Rai said. “That might be some ways away.”
 

AssassinsMace

Lieutenant General
First UK tried to get Australia, India and South Korea to join to form the D10 as a counter to China. Italy piped up and basically said "hey what the hell are you doing? You're trying to form an anti-China alliance or something? If Australia joins I'm out".

So then the D10 idea was dropped and at the G7 meeting they pretty much avoided talking about China and instead wasted time saying things like "yeah we should all agree we need to vaccinate everyone across the globe against COVID-19. No we're not donating any of our vaccines, we need them."

Then Merkel piped up at the meeting and said "you know I think we should increase cooperation with China" and there was awkward silence.

And now this.
Yes, if you watch US news on TV if they dare even talk about this G7 summit, they still act like the US is in a position of leadership and strength. From what I gather on the printed media side the G7 is not as unified and ganging up on China didn't pan out. Boris proclaiming he's a Sinophile only makes it look like the G7 Summit was a disaster for the US and Great Britain and because Great Britain, post-Brexit, is in a much more precarious position when it comes to its economic well-being and trade.
 

Gatekeeper

Brigadier
Registered Member
Morrison had suffered nothing. It's some Australian industries that suffered, and Morrison would not care. He is living a comfy life.

What the ruling class of Anglosphere is after isn't national economic prosperity, but their domination of the world. As long as they keep their hegemony and rule the world, economy is meaningless to them. If you are a ruler, you wouldn't need money.

Oh he will. Wait and see. Wait and see.
 
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