Chinese Economics Thread

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chgough34

Junior Member
Registered Member
ZeEa5KPul said:
I've been thinking about the reasons for the respective economic fortunes (and misfortunes) of China and the US, and I've come to the conclusion that the best explanation is the monetary cycles from Marx's Capital.

Two in particular are relevant to this analysis: M-M' and M-C-P-C'-M'. The former is dead simple, the capitalist advances money and gets back more money. This is finance capital in general - stocks, bonds, options, and other financial instruments. The latter is more complicated - the capitalist purchases industrial inputs, plants, hires workers, waits anxiously while his products are in production, then prays to the gods that he can sell for more than he paid to make them.

If you were a capitalist, which cycle would you rather your money be part of? Everyone would opt for the former. Who wants to take the risk and time and worry about competitors and strikes and commodity prices and a host of other factors beyond his control? Who needs that? I want more money now!

This is the reason for the "financialization" of the American economy. In a system where capital is politically ascendant, financialization is not a policy choice, it is an economic inevitability because this is where capital naturally flows. Conversely, in a system like China's where capital is subordinate to the state, the former parasitic cycle is suppressed in favour of the latter. The primary role of industrial policy and the state is to cultivate and guide the latter cycle in ways beneficial to society.
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Stocks and the like are claims on physical assets. A corporate capital structure made up of debt, cash, and stock uses money to generate more money by investing in productive capital projects (like factories) that are able to turn inputs into more money. More effective intermediation and risk management allows for more types of capital projects - such as clinical trials and software publishers to exist, as all kinds of investors can more effectively pool money and manage risk. M-M is simply an abstraction for M-C-P-C-M.
 
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GiantPanda

Junior Member
Registered Member
GiantPanda said:
Fantawild. They have one of the largest themeparks in China and the "Boonie Bears" trademark with TV series on CCTV and a movie franchise that made over $1B:

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The latest Boonie Bears movie is Time Twist. It made $271M in 2024.
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Guardian Code made $220M in 2023.

That is pretty good heft for any animation franchise outside Disney.

That said, there are other animation studios in China making even bigger box office but without the theme park portfolio of Fantawild.
 
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Chevalier

Senior Member
Registered Member
luminary said:
Reputational growth. Eventually all serious manufacturing companies will be based in China.



China prepares to squeeze the West's big pharma.

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A lot of the new anti cancer drugs have their roots in Traditional Chinese Medicine. Why should the West get to patent a core part of Chinese culture? Chinese medicine belongs to China and Chinese people. Do not let them steal it like they did with tea and gunpowder and silk.

If pharma companies want to use an extract from a herb or mineral found in TCM, let it be a Chinese company, better yet, let it be a state owned Champion, then it'll really be affordable, low cost and effective. By the people, for the people.
 
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Ironhide

New Member
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tphuang said:
interesting one here, since China opened up for visa free travel again, inbound tourism from south korea has really picked up. China now 3rd most popular destination for Koreans in Q1. Huge job in March especially

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Outbound travel not in SK favor.
United Arab Emirates, Egypt and Jordan are predicted to lead the recovery in Chinese tourism. Australia, the United Arab Emirates, the UK, Italy, New Zealand, Turkey, Qatar and Egypt are among the destinations whose flight capacities with China surpass levels before the pandemic.

FYI In 2019, some 155 million outbound Chinese travelers spent $253 billion abroad
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