Chinese Economics Thread


ZeEa5KPul

Senior Member
Registered Member
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.
I wouldn't worry about that, Xi has proved what he's made of time and again. If he said it then he meant it.
 

Overbom

Junior Member
Registered Member
That sucks. Isn't this like shooting one's self in the foot especially when you need industry growth to get out of pandemic losses?
industry growth is so so high that it is producing bottlenecks which result in high costs. It is a matter of time before they pass down the extra costs to the consumers

I think export tariffs are good enough. Fulfill domestic demand at normal price and then export higher inflation/prices to the rest of the world

Time for China to jump in the export inflation wagon. US must be delusional if it thinks that it will make China hold the hot potato of higher inflation
 

MortyandRick

New Member
Registered Member
industry growth is so so high that it is producing bottlenecks which result in high costs. It is a matter of time before they pass down the extra costs to the consumers

I think export tariffs are good enough. Fulfill domestic demand at normal price and then export higher inflation/prices to the rest of the world

Time for China to jump in the export inflation wagon. US must be delusional if it thinks that it will make China hold the hot potato of higher inflation
This is exactly why the Western nations want China to make more climate promises. This is the exact consequence IMO. Chinese regulators should have been more prepared for this and shouldn't have so quick to curb energy use. Could it hinder recover?
 

FairAndUnbiased

Junior Member
Registered Member
This is exactly why the Western nations want China to make more climate promises. This is the exact consequence IMO. Chinese regulators should have been more prepared for this and shouldn't have so quick to curb energy use. Could it hinder recover?
no, its about to bite them in the ass. Climate promises are the perfect excuse to raise prices for them and export inflation. Inflation is destabilizing to any economy that cannot grow faster than the rate of inflation.
 

Overbom

Junior Member
Registered Member
no, its about to bite them in the ass. Climate promises are the perfect excuse to raise prices for them and export inflation. Inflation is destabilizing to any economy that cannot grow faster than the rate of inflation.
Exactly. Biden is already making calls left and right but Xi is saying Non so far. All these basic products that China is exporting will raise in prices, thus making the common people poorer.

Export tariff on steel is very good
 

FairAndUnbiased

Junior Member
Registered Member
Exactly. Biden is already making calls left and right but Xi is saying Non so far. All these basic products that China is exporting will raise in prices, thus making the common people poorer.

Export tariff on steel is very good
the export tariff on steel is a master stroke because it is a common input for most US manufacturers. It raises prices across the board. at the same time it reduces demand for final steel products which reduces demand for raw steel which means that ore prices fall.

So basically this is exporting inflation to the US and taking money out of Australia's pocket.
 

Franklin

Captain
Please, Log in or Register to view URLs content!

It's Europe's future growth prospects that are looking grim. Somehow the West's call for self-reliance following Trump and now Biden doesn't have the same prospects on their growth...? Maybe Europe should've ignored US calls for technology bans on China if they want China to abandon plans for self-reliance. But that genie is going to be hard to put back in that bottle since they didn't bother to think about it in the first place. That's the difference between China and countries they like because those countries would be dumb enough to fall for it.
These days self sufficiency is the name of the game. The US, China and the EU are all talking about it. For the Europeans to complain about China's effort at self sufficiency is self serving.

There is however one crucial difference between the US and Europe seeking self sufficiency on the one hand and China on the other hand.

When the US and Europe are seeking self sufficiency they are moving down the value chain. When China is seeking self sufficiency they are moving up the value chain. What this means is that the West has to spend hundreds of billions of dollars and countless hours of man power to relocate production to make lower end goods. These resources are not going to be able to be used to maintain the West's technological dominance at the high end. And in the end you also have to question the economic viability of these projects. China on the other hand can spend freely to upgrade its knowledge and industrial base.
 

Top