Chinese Economics Thread

Wrought

Wrought

Captain
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India has lifted FDI restrictions on Chinese investments.

NEW DELHI, March 10 (Reuters) - India on Tuesday approved easing restrictions on Chinese investments in select sectors, the government said, to help ease a capital squeeze and marking a reset of economic ties after six years of friction. Prime Minister Narendra Modi's cabinet approved changes to foreign direct investment rules that restricted investments from China and other land‑bordering countries, to allow investments in electronics, capital goods and solar cell sectors, according to a ⁠statement.

The easing was driven by industry demands, as the 2020 curbs constrained manufacturers that depend ⁠on Chinese technology and capital.The change could boost cross-border mergers and acquisitions, minority investments and delayed funding rounds, particularly in capital-intensive sectors such as manufacturing, and startups, said Vaibhav Kakkar, senior partner at law firm Saraf and Partners.
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bd popeye

bd popeye

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Question..why raise prices when China has 39 million barrels of crude that's paid for waiting for the refinery?..I have a similar question for the US....Not a single drop of more expensive crude has been processed but gas(petrol) prices have increased significantly in the US.

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This photo taken on March 9, 2026 shows vehicles getting refueled at a gas station in Nanjing, east China's Jiangsu Province. China raised its retail prices of gasoline and diesel on Tuesday, following a sharp rise in international oil prices.

Gasoline and diesel prices increased by 695 yuan (about 100.5 U.S. dollars) and 670 yuan per tonne, respectively. (Photo by Yang Suping/Xinhua)

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A drone photo taken on March 9, 2026 shows vehicles getting refueled at a gas station in Changzhou, east China's Jiangsu Province. (Photo by Chen Wei/Xinhua)

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A staff member refuels a vehicle at a gas station in Lianyungang, east China's Jiangsu Province, March 9, 2026. . (Photo by Si Wei/Xinhua)

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A staff member refuels a vehicle at a gas station in Kunshan, east China's Jiangsu Province, March 9, 2026. China raised its retail prices of gasoline and diesel on Tuesday, following a sharp rise in international oil prices.

Gasoline and diesel prices increased by 695 yuan (about 100.5 U.S. dollars) and 670 yuan per tonne, respectively. (Photo by Wang Xuzhong/Xinhua)
 
bsdnf

bsdnf

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bd popeye said:
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Question..why raise prices when China has 39 million barrels of crude that's paid for waiting for the refinery?..I have a similar question for the US....Not a single drop of more expensive crude has been processed but gas(petrol) prices have increased significantly in the US.

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This photo taken on March 9, 2026 shows vehicles getting refueled at a gas station in Nanjing, east China's Jiangsu Province. China raised its retail prices of gasoline and diesel on Tuesday, following a sharp rise in international oil prices.

Gasoline and diesel prices increased by 695 yuan (about 100.5 U.S. dollars) and 670 yuan per tonne, respectively. (Photo by Yang Suping/Xinhua)

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A drone photo taken on March 9, 2026 shows vehicles getting refueled at a gas station in Changzhou, east China's Jiangsu Province. (Photo by Chen Wei/Xinhua)

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A staff member refuels a vehicle at a gas station in Lianyungang, east China's Jiangsu Province, March 9, 2026. . (Photo by Si Wei/Xinhua)

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A staff member refuels a vehicle at a gas station in Kunshan, east China's Jiangsu Province, March 9, 2026. China raised its retail prices of gasoline and diesel on Tuesday, following a sharp rise in international oil prices.

Gasoline and diesel prices increased by 695 yuan (about 100.5 U.S. dollars) and 670 yuan per tonne, respectively. (Photo by Wang Xuzhong/Xinhua)
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The price difference is too large; it's bound to rise some way.
 
Wrought

Wrought

Captain
Registered Member
tphuang said:
https://twitter.com/i/web/status/2031425533314019494

So apparently China is so starved off cheap oil (according to MAGA folks) that it has another 39 million barrels sitting off its coast just waiting to be processed while rest of Asia are declaring Force Majeure.
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Directly related to the above, we are already seeing ripple effects in downstream refining like polypropylene.

SINGAPORE (ICIS)–As polypropylene (PP) buyers in southeast Asia scramble to find cargoes to fulfil immediate production needs after seeing their contract allocations cut and previous unshipped orders cancelled, China, once seen as a force that is destabilizing the region’s trade flow, has now become the unlikely saviour with its spot availability. The escalation of geopolitical tensions in the Middle East has caused serious disruption to PP exports out of the region. More importantly, with the Strait of Hormuz in the hot zone, Asian PP producers are struggling to find the naphtha and liquefied petroleum gas (LPG) they need to continue operations.

Unlikely their Asian counterparts, Chinese producers are less exposed to the supply disruptions in the Middle East. A number of Chinese PP producers have refining facilities, so they use crude oil as the feedstock instead, which is more readily available compared to naphtha. In addition, some of them rely on domestic crude and liquefied natural gas (LNG) for their production. In 2025, 40% of China’s naphtha imports came from the Middle East, while the numbers for LPG and methanol are 50% and 70% respectively. Around 48% of the country’s crude imports are through the Strait of Hormuz. Besides import from the Middle East, some Chinese producers said they also procure feedstock from other regions, such as Russia and the US. Naphtha-based, propane dehydrogenation (PDH) and methanol-to-olefins (MTO) units account for more than 70% of the total PP capacities in China. Coal-to-olefins (CTO) PP producers in China are also not impacted by the US-Iran conflict. These plants are now running at full rates to capitalize on the export opportunities.
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