Chinese Economics Thread


escobar

Brigadier
China literally changed the oil market structure completely, the way we know it.
The problem is, China changed all of this since 2018, when it started building massive strategic petroleum reserves, and its refineries, whether the Chinese majors, or the teapot refineries, they became very active on the world stage.
So China prevented oil prices from reaching $100 in 2021. And their idea was simple: since demand is seasonal, and therefore prices are seasonal, I’ll release crude in Q3 and Q4, when demand is very high, then in Q1 of the new year, prices decline, and I’m going to refill.

Well, they planned on that, and then Putin goes into Ukraine [in February 2022] and [oil] prices went through the roof in Q1. So they got stuck. But later, they got lucky, because of the sanctions. This is one of the ironies of the Western sanctions: that they greatly benefited China. Because China was really stuck. Their SPR was very low, their commercial inventories were very low, and they got stuck. But with Western sanctions, they were able to replenish, their SPR and their commercial stocks, in a big way, and now they are waiting
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Nobo

Junior Member
Registered Member
Credit Suisse this week published end-2021 data. It puts net Chinese household wealth at $85.1 trillion. The American figure is $145.8 trillion. In 2011, the figures were $30.9 trillion and $65.8 trillion, respectively. The US household wealth lead over China has expanded by $25 trillion over the past decade.
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And how are these household wealth calculated? Candles priced at 150? Card board houses that have price tag of villa somewhere else in the world?
 

manqiangrexue

Brigadier
Credit Suisse this week published end-2021 data. It puts net Chinese household wealth at $85.1 trillion. The American figure is $145.8 trillion. In 2011, the figures were $30.9 trillion and $65.8 trillion, respectively. The US household wealth lead over China has expanded by $25 trillion over the past decade.
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Who uses absolute value with no regard to inflation or percentage to analyze this? That's like saying 30 years ago, US GDP was $1 trillion and Chinese GDP was $30 million and now, Chinese GDP is $17 trillion while American GDP is $22 trillion so American GDP expanded its gap over Chinese GDP by ~$4 trillion.

The correct interpretation is that in 2011, Chinese household wealth was 30.9/65.8=47% that of US household wealth while in 2021, it was 85.1/145.8=58.4% which means that Chinese household wealth had been outgrowing US household wealth by an average of just over 1.1% over the last decade.
 
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