Chinese Economics Thread

[Jiang ZeminFanboy]

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I am against property tax from value of property. You have a property and you have to pay big money every year or they will kick you out from your home. I am glad that I live in a country where there is no value property tax, at least for now. Poland and China don't have property value taxes.

 

[Overbom]

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I am against property tax from value of property. You have a property and you have to pay big money every year or they will kick you out from your home. I am glad that I live in a country where there is no value property tax, at least for now. Poland and China don't have property value taxes.

There is a reason why property taxes exist around the world. And there is also a reason why Xi is now calling for such a tax.

Finally, property tax is not enough. Vacancy taxes (dont want empty houses) and owning above a certain number of properties should also have more taxes (no parasites who own tens/hundreds of houses).

Ah yes, lets not forget inheritance taxes. Lets say, total value of assets above $1-2 million should also be taxed (and then close the well known loopholes that the rich are using in the West)

 

[Franklin]

China is stepping up support for advanced manufacturing in order to find alternatives for US tech. And maintain its position as a manufacturing power. China is shifting capital from property to high tech. A strategic decision has been made to focus on manufacturing instead of services. Which is in my view is exactly what you want to see.

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[xypher]

Nope, property tax is an absolutely necessary move. It is probably going to deflate the property bubble and slow down the GDP growth in the short term, but long term it will make the Chinese economy more healthy and help in the deleveraging that is being pursued by Xi's administration. I think that there is also a need for proper financial education for the general population so that they won't consider buying up additional residential units as the only viable "saving" option. Moreover, it is one of the keys to solve the demographic problem along with reforms in the educational sector - the goal is to make family creation affordable for the average citizen.

 

[MortyandRick]

China is stepping up support for advanced manufacturing in order to find alternatives for US tech. And maintain its position as a manufacturing power. China is shifting capital from property to high tech. A strategic decision has been made to focus on manufacturing instead of services. Which is in my view is exactly what you want to see.

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Quote from the article
"Rising external pressure since the start of trade war has made policymakers more determined to develop China's middle- and high-end manufacturing," said Qu Hongbin, chief China economist at HSBC.

"The higher external pressure, the more emphasis they put on the manufacturing. That will be turned into actual policy support."

Tianjin-based Ringpu Biotech (300119.SZ), which makes animal vaccines, has faced critical import delays on U.S. equipment and materials used for R&D and quality control.

"We have taken some measures, including increasing our own R&D capacity, and cooperating with other firms and universities," Ringpu Vice President Fu Xubin said.

Feels so good to read this hope this continues. To be honest I didn't expect the tech war would be a net positive for China.

 

[Overbom]

I think that there is also a need for proper financial education for the general population so that they won't consider buying up additional residential units as the only viable "saving" option.

You cant blame the people when not many investment opportunities were available. I am sure you remember how "trustworthy" Chinese companies' Quarter/annual reports were, so why able your money saved for life to a company which said that everything is well and next day they are going bankrupt..

This is now partly solved by opening the financial system and introducing wealth management products, private pensions etc.

However a key problem remains. A lot of companies are corrupt and they keep reporting fake earnings or putting out false public statements (report comes out that company cant pay suppliers, next day company responds : "Everything is ok, move along")

The most encouraging news recently were about the anti-corruption officers who are now investigating all the major financial system stakeholders (regulators, companies, accounting firms etc)

 

[KenC]

39 new energy infrastructure projects are being constructed in Gansu to produce 12.85 gigawatt of electricity altogether.
These will be solar, wind, solar-thermal and energy storage projects. I guess they might even slip in new ICBM silos.
Incidentally, such projects also serve to fight desertification.

 

[asta]

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Yet again, we see China’s economy falling behind the United States and substantially. Using the 3Q2021 forecasts from FRBATL, the US will grow +0.3% Q/Q_4 unannualized, and +7.9% annualized with even faster forecasts for 4Q2021. Meanwhile, China in 3Q2021 grew at +0.2% Q/Q_4 and +4.9% annualized and that is almost certain to crash to 2-3% annualized as the energy crises worsen from winter heating demands, the financial contagion from Evergrande increases bank NPLs, liquidity lockups and negative wealth effects and the demographic crisis is just starting with increasing dependency ratios weighing on public and household balance sheets all the while having a rapidly decreasing labor force.

 

[Kaeshmiri]

^^^Sleepy student with yet another account. What is funny is that despite making multiple accs you don't change the way you write.

 

[MortyandRick]

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Yet again, we see China’s economy falling behind the United States and substantially. Using the 3Q2021 forecasts from FRBATL, the US will grow +0.3% Q/Q_4 unannualized, and +7.9% annualized with even faster forecasts for 4Q2021. Meanwhile, China in 3Q2021 grew at +0.2% Q/Q_4 and +4.9% annualized and that is almost certain to crash to 2-3% annualized as the energy crises worsen from winter heating demands, the financial contagion from Evergrande increases bank NPLs, liquidity lockups and negative wealth effects and the demographic crisis is just starting with increasing dependency ratios weighing on public and household balance sheets all the while having a rapidly decreasing labor force.

The article itself said China’s yearly growth in 2021 is predicted to be at 8% even given these pressure. What’s US yearly predicted growth this year?

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Let me give you a hint : real GDP growth for 2021 and 2022 to 5.7% and 4.1%


In the mean time

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US jobs growth hit a wall. And from the article “officials have said they see the jobs market still well short of full employment. “

Furthermore ports and trucking logistics are stuck. LA port has a backlog of weeks! They can’t offload products, which will have further negative impact on the economy.