Which nominal value, USD or Yuan?
Chinese Economics Thread
- Thread starter Norfolk
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Which nominal value, USD or Yuan?
manqiangrexue
Brigadier
So you're not talking about USD to RMB conversion; you're talking about nominal vs real as in inflation adjusted vs. direct volume or production. We're gonna talk about Korea then revisit this in the last section.
The definition is funny, political, and largely useless. There are many "developed" countries that look ancient with poor or niche technology and languishing economies. And there's China, until recently a "developing" country, but one that has an economy, technology and military that makes the granddaddy of all developed countries so scared and insecure that it's turning into Nazi Germany.
Apples and oranges. 10 willing slaves don't necessarily become 1,000 warriors when they have the numbers. Sometimes, they can, but that needs to be proven, not assumed. Everything South Korea did was with American permission; unlike their northern brethren, they have never demonstrated the courage to rise and oppose whatever plan the dominant power of the world throws at them, and that plan is never to create another superpower.
That's what everybody wants in macro terms. I thought you meant you wanted China to adjust the RMB to USD conversion but since you are talking instead about inflation adjusted vs direct volume, then what are you asking China to directly do about it? The macro terms are the intended effects of those actions but what are those actions?
TikTok dominates the app space and ByteDance is the most profitable of the Chinese tech companies. Big hope for them in 2026 to dominate the AI landscape.
My thread on the China silver trade before the export control and where things are.
Zijin looking to acquire Canadian gold miner with 3 properties in Africa.
China's private sector has had a good run recently. Xi's Big Tech crackdown began around the peak and subsided by 2023, and the recovery began after that. He may not be comfortable with the ever-increasing importance of the private sector, especially the tech companies, but they are the backbone of China's success. There's no turning back.
Should also put to rest two types who view China as a socialist country: the tankies with rose-tinted glasses and the "China Hawks" who don't pay attention to data and instead fixate on Mao outfits at military parades.
China is not a meaningfully Marxist country in any way and arguably is hard to even call it socialist if your definition is strict. It's a mixed-capitalist economy with a structural tailwind towards private enterprise. And that's a good thing.
I disagree. It's a good thing that China's private sector is coming back, but China is a Marxist state that practices what is known as the socialist market economy. This is where a socialist government uses the market as a tool to promote competition, and thus to drive the success of socialism. This is by far the most successful socialist system in the world. The difference with capitalist systems is that private ownership is seen as incidental and derivative of the main task of the economy, which is to fulfill social goals set out by the Communist Party, rather than as an end in itself. It's an important distinction. It means that, for one thing, capitalists lack ultimate political power. They are subject to the government rather than owners of it, as in capitalist systems like the U.S. This is a fundamental difference in how policy decisions are made.
All the land in China is publicly owned, and you can either rent or be granted free land if you are a peasant lol. China is a socialist market economy.
I don’t think the issue is so much private vs state owned as whether the firms/companies can compete against one another. Monopolies are a much bigger threat.