Chinese Economics Thread

bd popeye

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Customers shop at a supermarket in Wuhan, central China's Hubei Province, June 9, 2025. China's consumer price index (CPI), a main gauge of inflation, was down 0.1 percent year on year in May, official data showed on Monday. On a monthly basis, the CPI dipped 0.2 percent last month, according to the National Bureau of Statistics (NBS). The core CPI, which excludes food and energy prices, climbed 0.6 percent year on year in May, accelerating from a rise of 0.5 percent registered in April. (Photo by Zhao Jun/Xinhua)

BEIJING, June 9 (Xinhua) Falling energy prices, which contributed 0.47 percentage points to the year-on-year decline in the CPI last month, were the main drag on the country's CPI, NBS statistician Dong Lijuan said.

Dong noted that positive changes emerged in some sectors as the country's policies to boost consumption continued to take effect.

The core CPI, which excludes food and energy prices, climbed 0.6 percent year on year in May, accelerating from a rise of 0.5 percent registered in April, according to the NBS.

A breakdown of the data showed that food prices declined 0.4 percent year on year last month, non-food prices remained flat, consumer goods prices dropped 0.5 percent, while service prices rose 0.5 percent.

During the January-May period, the country's CPI averaged a 0.1-percent decline compared with the same period last year, according to the NBS.

Monday's data also showed that China's producer price index (PPI), which measures costs for goods at the factory gate, went down 3.3 percent year on year in May. The decline widened from a fall of 2.7 percent in April.

Dong attributed the PPI decline to falling international crude prices, which pulled down domestic prices in petroleum-related industries, along with a seasonal slowdown in demand for energy and raw materials. Dong noted that coal prices eased and construction activity was disrupted by hot and rainy weather in southern regions.

On a month-on-month basis, the PPI dropped 0.4 percent in May, according to the NBS data. In the first five months of the year, the PPI on average declined 2.6 percent compared with one year earlier.

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Customers shop at a supermarket in Zaozhuang City, east China's Shandong Province, June 9, 2025. (Photo by Sun Zhongzhe/Xinhua)

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Customers shop for electric scooter at a store in Wutai Township, Pingyi County, east China's Shandong Province, June 9, 2025. (Photo by Wu Jiquan/Xinhua)

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A customer shops for fruit at a supermarket in Shijiazhuang, north China's Hebei Province, June 9, 2025. (Photo by Jia Minjie/Xinhua)

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Customers shop for vegetables at a supermarket in Zunhua City, north China's Hebei Province, June 9, 2025. (Photo by Liu Mancang/Xinhua)

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A customer shops for eggs at a supermarket in Handan City, north China's Hebei Province, June 9, 2025. (Photo by Hao Qunying/Xinhua)
 

escobar

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The Ethane Export Control Fiasco: What London Trade Talks Cannot Fix
The most glaring failure of the ethane export controls is their inability to meaningfully damage Chinese petrochemical capacity.
Ethane accounts for only 8–10 percent of China’s total ethylene production feedstock, with the vast majority coming from naphtha (70 percent) and LPG (15–20 percent). Even if U.S. ethane disappeared entirely tomorrow, China would lose at most 5–6 percent of its ethylene capacity in the short term.
More critically, China’s petrochemical infrastructure was built with exactly this kind of supply disruption in mind. The country’s newest crackers utilize flexible furnace technology—particularly Linde’s PyroCrack systems—that can switch between gas feeds (e.g., ethane) and liquid feeds (e.g., naphtha). This is not theoretical capability; it is engineered redundancy designed to handle, among other things, geopolitical volatility.
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tphuang

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The Ethane Export Control Fiasco: What London Trade Talks Cannot Fix



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it is kind of ridiculous for this kind of article to come out in the first place. These people think that America should damage china's petrochem capacity.
China has coal to chemical, petrochemical and in the future hydrogen to chemical plants all coming up. Its beyond stupid to think China would not prepare against this kind of stuff
 

manqiangrexue

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Robert Lighthizer must be thanking himself that he was not part of the team. In his memoir, he would write that he saw the darkness of that role.
China be like:
s-l400.jpg
 
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