Chinese Economics Thread

MortyandRick

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Very funny video. Biased but not as much as others. Its interesting to hear the DW china analysts admit that the ghost cities that western media portrayed so much back in 2010 are now “all filled”. I suspect he was one of those people who were predicting china housing collapse back then because of these ghost cities. Now that he’s been proven wrong, he had to save himself and say that it May be difficult for the Chinese government to sort out the current housing problems because it’s not the same china as 10 years ago. lol always mental gymnastics to make them seem right.

Then they talked about these nail houses where ones refused to leave. which is contrary to western media portrayals of the government evicting people to build new structures. Turns out reality is so very different from what western media says.
 

56860

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zgx09t

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Very funny video. Biased but not as much as others. Its interesting to hear the DW china analysts admit that the ghost cities that western media portrayed so much back in 2010 are now “all filled”. I suspect he was one of those people who were predicting china housing collapse back then because of these ghost cities. Now that he’s been proven wrong, he had to save himself and say that it May be difficult for the Chinese government to sort out the current housing problems because it’s not the same china as 10 years ago. lol always mental gymnastics to make them seem right.

Then they talked about these nail houses where ones refused to leave. which is contrary to western media portrayals of the government evicting people to build new structures. Turns out reality is so very different from what western media says.

Your intro convinced me enough to skip watching it. Western experts seem to not recognize painful structural reforms in property market even when these reforms are spit-screaming right at their collective face.
In medium to long term, China needs to figure out how to help her citizens invest their savings and earnings in different markets and sectors with ease and confidence. What's the point of trying to get rich and then not knowing what to do with your new found wealth and money? If ,at that stage, the West is still a better attractive avenue to seek finance and investment, something has gone really wrong, as influence comes from where the money goes. Just like the first time when things went wrong as China didn't figure it out how to marry capital and homegrown tech to scale them up to spread the benefits to all.
 

BlackWindMnt

Captain
Registered Member

Very funny video. Biased but not as much as others. Its interesting to hear the DW china analysts admit that the ghost cities that western media portrayed so much back in 2010 are now “all filled”. I suspect he was one of those people who were predicting china housing collapse back then because of these ghost cities. Now that he’s been proven wrong, he had to save himself and say that it May be difficult for the Chinese government to sort out the current housing problems because it’s not the same china as 10 years ago. lol always mental gymnastics to make them seem right.

Then they talked about these nail houses where ones refused to leave. which is contrary to western media portrayals of the government evicting people to build new structures. Turns out reality is so very different from what western media says.
When you have to move like hundreds of million of people into cities to get the same urbanisation rate as a developed nation, you want to preplan housing. It's takes extreme tunnel vision and short sightedness to not be able to see this.
 

Chish

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Weaker yuan means lower domestic consumption.
It means foreign goods and services are more expensive to import while Chinese goods become cheaper to export. It means China have to pay more for imports of raw materials, oil and gas.
It means it become more expensive for Chinese to travel overseas and cheaper for foreigners to visit China. The values of goods made with local materials and labour remain the same for local Chinese except for inflation but inflation is relatively very low in China.
 
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henrik

Senior Member
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I wil

I will take this bet of his certitude with respect to his analysis on China's supposed peak economic growth. Bear in mind that many of the reasons why China's economy is not as strong as they could be was initiated by the government policies enacted these past 2 years. The tech industry, the tutoring industry, gaming industry, and now the real estate industry plus the ongoing Zero-COVID dynamic policy which does limit the economic growth China enjoys. The leadership is trying to re-orient it's economy towards the future but because most analysis and these so-called analysts are only interested on providing the short term fixed for the ADHD people in the west, it's why they keep producing garbage or incompetent and incomplete analysis of China’s economy.

If China cannot grow fast, then other countries like India, vietnam, Japan, Korea should forget about growing fast as well.
 

Strangelove

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Yuan assets gaining favor in Russia, with yuan-rouble trading volume expected to overtake that of dollar-rouble in 2022

By Global Times Published: Sep 29, 2022 09:16 PM

File photo shows a worker counts Chinese currency Renminbi banknotes at a bank in Tancheng County of Linyi City, east China's Shandong Province. Photo:Xinhua

File photo shows a worker counts Chinese currency Renminbi banknotes at a bank in Tancheng County of Linyi City, east China's Shandong Province. Photo:Xinhua

Yuan-denominated assets are gaining favor in the Russian market as bilateral trade gains momentum, a Chinese expert said on Thursday, after Russia's largest bourse predicted that the trading volumes of Chinese yuan and Russian rouble would exceed that of the rouble and the US dollar next year.

Facing sanctions by the US-led West, Russia has been cutting its usage of US dollar and the euro, while increasing settlement in local currencies in foreign trade, Li Xin, director of the Institute for Eurasian Studies at the Shanghai University of Political Science and Law, told the Global Times on Thursday.

The country has not only increased the usage of yuan in the growing trade with China, it has also started to use yuan to settle its trade with other countries and regions, such as India, Li noted.

India's biggest cement producer, UltraTech Cement, reportedly paid in Chinese yuan for a shipment of coal from Russian producer SUEK, Reuters reported on June 29.

In addition to trading settlement, some Russian business giants have started to issue yuan-denominated bonds as well. Russia's largest gold miner, PJSC Polyus, has priced an issuance of 5-year yuan-denominated bonds at a coupon rate of 3.8 percent per annum, with a nominal value of bonds of 4.6 billion yuan ($644 million), according to a statement the company released on August 24.

Less than one month earlier, Russian aluminum company Rusal issued 4 billion yuan-denominated bonds in the Russian market. According to a Reuters report on Thursday, Rusal's director of corporate financing, Alexey Grenkov, told a finance conference that 20 percent of the company's loans were already in yuan.

In August, the trading turnover of yuan against the rouble exceeded 6.9 billion roubles ($118 million), 61 times higher than in last December, the report said, citing data from the Moscow Exchange.

China and Russia have enhanced cooperation in economic and trading areas over recent years. Except for a slight drop in 2020, bilateral trade recorded rapid growth in recent years. In 2021, bilateral trade stood at $146.87 billion, up 35.9 percent year-on-year, and
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, according to data from China's Ministry of Commerce.

In the first eight months of this year, bilateral trade totaled $117.2 billion, up 31.4 percent year-on-year, according to data from the General Administration of Customs.

It is expected that bilateral trade between Russia and China will hit a new high this year, experts said.

Besides growing trading momentum, it is obvious that the yuan has advantages for Russian businesses seeking alternatives to the US dollar or euro, given China's status as the world's second-largest economy and the largest trading partner for over 120 countries and regions, according to Li.

Aside from Russian businesses, the yuan has also been gaining favor in the international market in recent years, especially in developing countries with Washington repeatedly weaponizing its dollar hegemony to attack others, Li said, predicting that the internationalization of yuan would be enhanced over the long term.
 
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