Chinese Economics Thread

[doggydogdo]

Where are the "deflation is good" fanboys now? Go ahead and quote your electricity production figures to somehow justify that things were absolutely fine.

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The article is about companies investing in capacity instead of new technology and some unfair market forces that keep some of these non-innovative companies alive. Do you think this article is about inflation good and profits for non-innovative companies must be upheld? What's with Ur crazy obsession with deflation?

 

[Jiang ZeminFanboy]

All the Chinese problems with continued period of deflation you can deal with the increase of minimum wage. If this year minimum wage is raised by 1000 rmb and for the next 5 years every year by 500 RMB than deflation is over. Minimum wage might finally caught with market clearing wage and will move the wages of whole set of different jobs in whole economy. If minimum wage is close to the easiest office jobs, people who makes them will ask employers for a rise because they don't want to earn minimum wage. And you have chain reaction of everyone asking for a raise. This is exactly what happened in Poland in recent years, wages caught up to Portugal, maybe even higher. Poland minimum wage was risen from 2,250 zł in 2019 to 4666 zł in 2025 that's 9000 rmb. In China you had almost stagnant minimum wage for years with increase usually for about 200 rmb and even not every year. Shanghai minimum wage is 2700 rmb what a joke, no one earns that.

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[Wrought]

US Federal Reserve announcing—somewhat to my surprise—that 5% growth in China is in fact legit. I guess professionalism is not quite dead.

Chinese authorities recently announced a growth target of "around 5 percent" for 2025, the same as their 2024 target. Five percent is about half the pace of growth that China sustained from the 1980s to the early 2010s, but it is nonetheless quite high for an economy flirting with deflation and mired in a years-long property bust. The ambitious growth target, given the circumstances, has led many observers of the Chinese economy to once again treat the official GDP data with skepticism. In this note, we revisit an alternative indicator of Chinese GDP growth developed by Barcelona et al. (2022) to examine whether official data overstate Chinese GDP growth. Our findings suggest that recent GDP growth figures, which have been in line with the stated target, appear to align closely with broader Chinese economic indicators and do not appear to be overstated.

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[tygyg1111]

Can you provide a summary?

"IT'S OVER!!! 3 DAYS TO COLLAPSE!"

 

[canniBUS]

Are you mentally unwell? Which part of "Deflation is bad" = "Inflation is good"? I suggest remedial English.

It also seems you are unable to read Chinese as well - may I suggest 语文 as well?

>be u
>got owned
>call the other guy mentally unwell
top tier argumentation

 

[Michael90]

The article is about companies investing in capacity instead of new technology and some unfair market forces that keep some of these non-innovative companies alive. Do you think this article is about inflation good and profits for non-innovative companies must be upheld? What's with Ur crazy obsession with deflation?

One thing everyone can agree on is that deflation is bad for the economy/industry overall, no denying that, Just like high inflation is bad for the economy/industry . There should be a minimum level of inflation that is needed. So a delicate good balance of inflation is preferable , which is something I believe Chinese authorities are trying to achieve.

 

[Xiongmao]

One thing everyone can agree on is that deflation is bad for the economy/industry overall, no denying that, Just like high inflation is bad for the economy/industry . There should be a minimum level of inflation that is needed. So a delicate good balance of inflation is preferable , which is something I believe Chinese authorities are trying to achieve.

I think it is totally up for argument whether deflation is bad for the economy or whether a minimum level of inflation is good or needed for the economy. I only have a very basic understanding of economics and even I can see that deflation would be good for the consumer for obvious reasons if on the other hand productivity gains for industry means that the corporations continue to make a profit as well, then everybody benefits. Also a minimum amount of inflation would not be good for people if the real increase in wages does not keep up, this would benefit the corporations alone. I don't think that China should be playing by the West's economic playbook.

 

[CMP]

Inflation is bad for workers and savers. "A minimum level of inflation" is mostly just good for debtors and owners of large corporations.

 

[siegecrossbow]

US Federal Reserve announcing—somewhat to my surprise—that 5% growth in China is in fact legit. I guess professionalism is not quite dead.

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Don’t know if Chinese data is legit but it sure is a lot closer to ground reality than what is being cooked up by the Feds from across the pond…

 

[CMP]

US Federal Reserve announcing—somewhat to my surprise—that 5% growth in China is in fact legit. I guess professionalism is not quite dead.

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Don't worry. The Fed's independence from politics will be over soon enough, regardless of who Trump puts in there. After that, you'll start seeing plenty of stupid deranged shit about China from the Fed. It'll be another "Select Committee on the CCP".