Chinese Economics Thread

[manqiangrexue]

Those "enemy countries" aren't going to want to trade with you and will put up more trade barriers if you only sell to them and never buy anything. So if you want to export more, you also need to buy more from those countries.

Trade only on what we need. We don't need from them nonsense like handbags, fashion, cheese or wine. If they sell us technology or raw materials that we can use to increase national power, now we're getting somewhere. If not, then I really see no need to trade with them. We sell them the things they need to run their economies. The whole reason they can boast that the have high standard of living is because they use fake printed money to buy real goods that China makes. If we stop trade, everybody makes his own stuff and China will prevail with the higher standard of living from our manufacturing power. If they want to ban tech and balance trade by selling us useless crap like cultural exports or mundane things we can get anywhere, they can keep their stuff, we'll keep ours and we can trade them to the global south for raw materials. The global south will end up with Chinese consumer products that shine at the top of the world while fueling China's rise and the West can all turn into Italy where they run on a myth of superior quality and everyone owns like 12 things but they're all super expensive and locally handmade.

 

[HighGround]

Trade only on what we need. We don't need from them nonsense like handbags, fashion, cheese or wine.

So you're against the idea of Chinese consumers buying brands they like? Do you have something against Wagyu beef?

 

[manqiangrexue]

So you're against the idea of Chinese consumers buying brands they like?

Not as long as they are local brands. If they're Western brands, then there should be a reason they are used, such as either being superior tools to do a better job while local alternatives are developed, or to take apart and study to improve domestic brands.

Do you have something against Wagyu beef?

Yeah, it powers an enemy government and military. What do Chinese people get out of it? 10 seconds of culinary enjoyment to afford the Japanese another round of ammo they want to fire at us in Taiwan.

Unfortunately, in the real world, very few Chinese people are so political. They'd learn if they went to the West to witness the fear and hatred of their kind or if they were able to read online what American politician and MAGA want to do to China.

 

[tphuang]

Trade only on what we need. We don't need from them nonsense like handbags, fashion, cheese or wine. If they sell us technology or raw materials that we can use to increase national power, now we're getting somewhere. If not, then I really see no need to trade with them. We sell them the things they need to run their economies. The whole reason they can boast that the have high standard of living is because they use fake printed money to buy real goods that China makes. If we stop trade, everybody makes his own stuff and China will prevail with the higher standard of living from our manufacturing power. If they want to ban tech and balance trade by selling us useless crap like cultural exports or mundane things we can get anywhere, they can keep their stuff, we'll keep ours and we can trade them to the global south for raw materials. The global south will end up with Chinese consumer products that shine at the top of the world while fueling China's rise and the West can all turn into Italy where they run on a myth of superior quality and everyone owns like 12 things but they're all super expensive and locally handmade.

yeah, with that kind of attitude, nobody is going to trade with you.

Chinese leadership is having many tough conversations with much of rest of the world.

This kind of attitude is just so short sighted.

 

[manqiangrexue]

yeah, with that kind of attitude, nobody is going to trade with you.

Chinese leadership is having many tough conversations with much of rest of the world.

This kind of attitude is just so short sighted.

What is your attitude? Sell them our toys, sneakers, cars, appliances/electronics, etc... and buy from them cheese, wine, beef, Gucci, etc...? We sell at the most competitive prices in the world and they sell to us at premium prices for their "Made in EU/USA" tags? What is the point? What does "nobody" mean? Know your enemies and know your friends.

There are many nations that are friends of China. Those nations should be traded with; we should help them improve their lives with our products and they can supply us with what we need from them to grow and develop further. That is the purpose of trade. Both China and these countries should prosper.

Then there are countries that are enemies of China. They have antagonized China for decades sitting by America's side. Their technologies should be made obsolete, their products copied and improved, and thier prices undercut so that they can no longer find a niche for themselves on the international market. These countries should languish and find themselves in the same situation as the countries in the global south that they oppressed.

Right now, world trade is extremely unfair. There are first world Western countries that use their control of technology and finance to keep other countries poor, producing things that are sold at cheap prices to keep the Western countries rich and their lives easy. China is the only country that can out innovate them and make everything they produce globally uncompetitive. Then, who needs their currency (Euro, dollar, yen) if no one needs anything from them? If no one needs their currencies, then how can they control finance? Once that is broken, they will be the new poor nations struggling to produce what they need for their lifestyles. Of course, the finishing touch on this is that China is also the only country that can build a military that can prevent them from using force against smaller nations that economically pivot away from them.

This should be the end goal and meaning of trade from a Chinese perspective, to create a world where our enemies are weak and sidelined while China and our allies become powerful and dominant.

 

[Randomuser]

HK stock market has gone insane lately.

All the hype about AI so many tech firms listing there. There's also the trend for A+H share dual listing from established China firms as well as US listed Chinese firm coming home to also list in HK.

I guess HK is used as the entry point for Chinese clout now since it's really hard for international investors to buy A shares. Wonder how many saw this coming back in 2019 when HK rep was at the bottom point.

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However leave it to westoids to rain on its parade. I noticed the guy deliberately omitted the fact that HK was the top IPO location in 2025 or it's performance was way better than almost everyone else. OpenAI looks for a 1T IPO but Chinese undervalued AI firms are the issue. Thats what I kinda expected from these sorta articles. I'm getting tired to these slimy passive aggressive jabs.

 

[jli88]

https://twitter.com/i/web/status/2011275063325004287

Trade surplus (goods) of 1.189 trillion USD.

 

[AndrewS]

Those "enemy countries" aren't going to want to trade with you and will put up more trade barriers if you only sell to them and never buy anything. So if you want to export more, you also need to buy more from those countries.

Agreed

But on a practical level, if China can produce everything better and cheaper, what does China actually need to buy from overseas?
And in order to make overseas products cheaper than Chinese products, you have to make the RMB overvalued.
That would imply the RMB has to double in value against the USD, which would take a decade if managed gradually.

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The other solution is for Chinese companies to open factories abroad and produce locally, so China does export less.
Given how automated factories are these days, it shouldn't make much difference in job numbers.
But then you have political risk with factories located elsewhere, so you want to locate these factories in friendly locations.

 

[henrik]

It's used to import raw materials and any tech we still need that's not banned. If it's actually not much use then don't export, right?

No, a higher value of RMB does not affect consumption of domestic goods except those made with imported materials. The most significant effect of a higher valued RMB is an increase in imports and a decrease in exports. Oftentimes, those imports are from enemy countries by Chinese people who don't understand politics and buy Japanese toilets/beef, European wine/cheese/chocolate and American/Canadian agriculture.

What stage of development is that, overtaking the previously lone superpower? Where does it say what your nominal growth should be during the superpower overtake phase?

All it takes is just an appreciation of RMB for about 20%. This will just make the nominal gdp a lot larger, just enough to scare the crap out of those yankee clowns.

 

[manqiangrexue]

All it takes is just an appreciation of RMB for about 20%. This will just make the nominal gdp a lot larger, just enough to scare the crap out of those yankee clowns.

The crap is already out of the Yank clowns; how else do you think they elected a German as president who brought Gestapo/Stazi culture to ICE, turning the educated portion of the country into victims of all the angry high school drop out racists? China doesn't even wanna scare them anymore; we're all about business and bettering ourselves.