Chinese Economics Thread
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"What the World Bank didn’t say, however, was that days before the August 2020 announcement, Malpass and other top bank officials were presented with rankings for the 2021 edition of the report showing China advancing, people familiar with the matter said." Taken from the above linked article.
WB an American created institution continues to be politicized will be it's undoing. It seems that Americans and many western led countries are guilty of discrediting the very institutions they have had the genesis of creating intended to support development in the Global south anf they purport to support in all their public speeches. But now that China is undeniably rising through these institutions in rankings the people that are in levers of power are now saying the very system they created and control to this day is now rig and is rife with data irregularities because of China? Lol
Perhaps the problem here is not the data and or that China is rising on important key metrics of economy, health, people security, environmental safety etc. The problem is with China's political system and name the P.R.C. governing body that is the Communist Party Of China. This fact should be obvious to anyone with some degree of geopolitical awareness around the world. The more China rises the more it undermines the western led and created narrative about the primacy and importance for a country to have the western style of government if any country wishes to advance itself to economic prosperity and security. This is the sad reality that can't be reconciled with people in the west that are held hostage by their ideological dogma and assumptions of the superiority of their "rules based order."
Haha these people are totally delusional. The "Doing Business" report
It doesn't matter if it wants to "cheat" against China. As long as a businessman tries to open an business and operate in China, he will understand how correct or wrong that report was.
Its the same as soft against hard power. The West can write all the reports they want till the end of time. However, in the real world, the business environment in China is constantly improving.
In fact, the 2017 trade war by the US dramatically boosted China's business environment because it forced the Gov to pass a lot of economic reforms lol
The only thing I see here, is sour grapes from the West
Based...
Eric fucking Li kickin' ass.
Eric fucking Li kickin' ass.
I'm surprised that Beijing did not place any sanctions on Soros or his family members.
If China manages to pop the property bubble with minimal contagion/consequences, it would be the greatest gift for the young Chinese trying to enter the house market.
It would also supercharge business growth, as the sky-high property prices have been a significant problem for SMEs.
So far, the Gov has acted very calmly and didnt make any rush moves.
I say, let the big investors get wiped put, bondholders a big haircut, and let Local Govs finish Evergrande's units which are under construction/prepaid.
Very small investors/common people should suffer minimal loses (not nothing, they should also learn some lessons about where to put their money, and to be vigilant about too good to be true investments).
Companies such as Evergrande and Sunac are just looking for government bailout. Their founders already siphoned billions of dollars into their oversea accounts. However, they are not off the hook even if their companies went into bankruptcy. HNA founders have found out the hard way. Chinese government has a long memory and would go after anyone who overstep and abuse their positions. Of course, they might only get sentenced a few years but the message is loud and clear.
Easier said than done. Consider these:
It's the asset class where the majority of Chinese hold their wealth, not just the wealthy class.
It's far more important than equity market ever was.
It's probably the biggest source of revenue for many local governments.
It's the one sector that drives the biggest share of GDP growth.
It's not that only this administration realizes the danger and risks that real estate sector poses. It's been an issue for over a decade now. And, to be fair, the kind of real estate model that China practices (borrowing from Hong Kong) has been a huge factor in transforming Chinese urban landscape and infrastructure. But its negative effects have begun to overshadow its positives.
It's time to tackle the problem, before it's too late. The key is to have a comprehensive strategy to deal it.
Hopefully this Evergrande crisis will send the right signal that the central government means business. There had been too many false signals before.
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