Chinese Economics Thread
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China's interest rates are still significantly higher than all other major economies, so the small changes will not affect the rmb's rise.
As to the US dollar, while it continues to go down vs the Yuan, the story is somewhat different compared to other currencies. Overall, it went down quite a bit from May 2020 to May of 2021, but has recovered some ground since. The stock market is tanking because of US tightening (or talk of tightening), which is the same thing that has driven the dollar up.
In the last two months, the dollar has not moved much, and could be turning negative again? I think this will force actual interest rates upwards (and not just talk about it), and this can begin to affect the real economy. When this happens, the US will have spent some 9 trillion to achieve nothing!
Thanks to CCP, excellent results despite the western WAR against the Xinjiang and it's Uighur population. Could have been a a lot better without the western malicious campaign to destabilize the region.
Feasibility study completed for Soyuz Vostok gas pipeline project
January 25, 2022A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Sainbuyan Amarsaikhan, Deputy Prime Minister of Mongolia, took place today via a video link.
The parties signed a statement on the results of the consideration of the feasibility study for the Soyuz Vostok gas trunkline construction project.
As per the feasibility study, the pipeline will stretch for 962.9 kilometers in Mongolian territory, the pipes will be 1,400 millimeters in diameter, and five compressor stations will be installed. The scope of works performed as part of the feasibility study, which includes the calculation of investment and operating costs, is extensive enough for the study to serve as FEED documents.
Alexey Miller thanked Sainbuyan Amarsaikhan for the assistance provided by Mongolia. For instance, Mongolian companies performed the required on-site surveys, engineering & environmental mapping, and route analysis for the Soyuz Vostok project. The data obtained were used in the development of the gas pipeline route.
6 Yuans per USD would be great. We could hear the US crying about "Chyna exporting inflation" right amidst their elections where Democrats can lose to Republicans which will effectively paralyze the US for the rest of Biden's presidency.
China is already exporting inflation to US without raising RMB rates. Chinese producer has just been increasing the producer price in macro level.
US Dollar Currency Index DXP increased by 6.4% in 2021.
Despite this, US import price from China increased by 4.7%. Perhaps the highest increase in decades.
Also US import price from the far east region (including China input) increased by 3.2 - 9.6 %.
The natural trend shows that the producers have been raising prices without reliance to currency appreciation. The is more flexible and manageable. This approach also minimize the negative effect of sudden currency appreciation.
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The more competitive regions can afford to hike prices even more.
Singapore and Hong Kong are statistically insignificant. Taiwan and S Korea benefited significantly from the semiconductor shortage, China has much more depth of coverage over all manufactured product categories.
Note that China has been deflating factor in US import price for decades. A 4.7% increase in US import from China is likely the highest we have seen ever. This number is significant.
Moreover, this means China is quickly moving up the supply chain and this trend will continue regardless of currency rates.