Chinese Economics Thread

localizer

Colonel
Registered Member
Can someone tell me how China benefits from the RCEP? Wouldn't removing tariffs and opening things up hurt Chinese companies and workers?

I ask as someone with zero knowledge about the implications of the RCEP.

Will force Chinese companies to be more competitive.

Makes surrounding countries more friendly i guess?



Overall it signals a shift of the world economy towards the East which has most of the world's people.
 

horse

Colonel
Registered Member
Can someone tell me how China benefits from the RCEP? Wouldn't removing tariffs and opening things up hurt Chinese companies and workers?

I ask as someone with zero knowledge about the implications of the RCEP.
It is the Theory of Comparative Advantage.

It is an economic theory that more trade between nations will result in greater output for all, meaning all those nations trading together.

Reduction of tariffs will stimulate trade, which in turn stimulates the economy.

That is the most important point to know, just in case we do not know that.

There could be other effects emanating from this trade deal, such as political clout shifts, or certain industries rising or falling, or a potential much needed boost due to the pandemic. Those are not the main goals of any trade deal. What happens next, is what happens next.

Kay sera sera.

:)
 

caudaceus

Senior Member
Registered Member
Lots of U.S. wealth is in equity (stock exchange et al) I believe.
Hence 401K is so much important there.

P.S.
This in turn I believe results in some contradiction.
So 401k performance is a good metric for politicians during elections, therefore policies are geared towards propping the stock exchange, see Trump emphasizes the Stock exchange.
Yet, 401K values are disproportionately tilted toward old workers/pensioners, being a pension program it is. Ideally, government policy should also take account of young workers/voters who are recently starting to build their economic nest and wealth. However, young voters are kind of unreliable i.e. low turnout so politicians rarely cater to their needs.
Harmful effects of overemphasizing equity/401k are for example expensive real estate and/or companies tend to over-optimize their quarterly financial reports, sacrificing workers' career and salary progression.

Disclosure: Not an economist, just a speculation.
 
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