Chinese Economics Thread

[gadgetcool5]

China unemployment: Beijing’s regulatory crackdowns pose yet another hurdle for young urban jobseekers​

Roughly one out of every seven young urban workers in China remains unemployed, as Beijing’s regulatory crackdowns on key industries are adding further pressure on the nation’s weak jobs sector amid more signs of a broad economic slowdown, according to the latest economic data.

The official figures indicate that the surveyed jobless rate for workers aged 16 to 24 – which includes most high school and college graduates – hit 15.3 per cent in August, the National Bureau of Statistics

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.

Although last month’s rate was an improvement from 16.2 per cent in July, and was 0.2 percentage points lower than in June’s graduation season, it marked an increase from the 13.1 per cent seen in August 2019, pre-coronavirus.

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[AndrewS]

Yeah, fiscal policy is unnecessarily tight. Germany has also run balanced budgets, how's their growth going?

What is the point of China pumping money into the domestic economy when there are widespread shortages and bottlenecks?

It will just result in inflation without any additional output.

From past experience, we also know that China can and will boost spending if required.

 

[gadgetcool5]

What is the point of China pumping money into the domestic economy when there are widespread shortages and bottlenecks?

It will just result in inflation without any additional output.

From past experience, we also know that China can and will boost spending if required.

FWIW, China's PPI inflation may be high and exports are high, but China's CPI inflation is very low (only 1.3%) and retail sales growth is low. If China wants to follow a dual circulation strategy and reduce reliance on exports, it should put more money into the pockets of working class people, who have borne the brunt of the pandemic-related economic slowdown and regulatory crackdowns.

 

[AndrewS]

FWIW, China's PPI inflation may be high and exports are high, but China's CPI inflation is very low (only 1.3%) and retail sales growth is low. If China wants to follow a dual circulation strategy and reduce reliance on exports, it should put more money into the pockets of working class people, who have borne the brunt of the pandemic-related economic slowdown and regulatory crackdowns.

Huh?

Chinese CPI inflation will almost certainly follow PPI inflation

And the regulatory crackdowns will put so much more money into the pockets of working class people.

Remember some of the key targets are:
1. unnecessary spend on school tuition
2. technology monopolies which reduce competition and result in higher prices
3. eliminating algorithms which try to charge you as much as possible

 

[Kaeshmiri]

Dont fall for this alt-account. He is SleepyStudent. They are very similar as there both saying how printing trillions was totally rocketing the US past China lol

SDF is like a drug for some users. Just Cant resist from posting

 

[ansy1968]

Huh?

Chinese CPI inflation will almost certainly follow PPI inflation

And the regulatory crackdowns will put so much more money into the pockets of working class people.

Remember some of the key targets are:
1. unnecessary spend on school tuition
2. technology monopolies which reduce competition and result in higher prices
3. eliminating algorithms which try to charge you as much as possible

@AndrewS the western MSM will never report that and I think Evergrande will allow to fail and be under receivership. They are undertaking reform now cause they had the economic momentum to do so. Compare to other economy China is attractive, the US market is overinflated, while the EU is in stagnation. In other words China is the only bright spot in the world economy.

 

[AndrewS]

@AndrewS the western MSM will never report that and I think Evergrande will allow to fail and be under receivership. They are undertaking reform now cause they had the economic momentum to do so. Compare to other economy China is attractive, the US market is overinflated, while the EU is in stagnation. In other words China is the only bright spot in the world economy.

If they go bankrupt, all their projects will likely stop.

So I think a debt restructuring is the best option.

The existing shareholders will be wiped out, and the debt-holders will also face a haircut as the debts are converted into ownership of the company.

 

[PiSigma]

lmao, it wasn't seasonal. All released Chinese data figures are seasonally adjusted

Actually all released Chinese data is not seasonally adjusted and are raw data. US uses the TRAMO method for seasonal adjustment.

 

[Equation]

Looks like low tech manufacturing are heading back China.

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[Tyler]

Looks like low tech manufacturing are heading back China.

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Now is the time to hike the rmb by 5%,, since vietnam is still closed and India is even worse than the US in covid cases.