Chinese Economics Thread

[supercat]

Another extremely important trade deal - the EU-China Comprehensive Agreement on Investment, will be signed before the end of this year, after more than 6 years of negotiation. While the RCEP defeats the purposes of the "Indo-Pacific" policies that was initiated by the Obama administration and shatters Taiwan's delusion of "Go-South" policy, the EU-China CAI will prevent the U.S. and EU from forming a united front against China economically. With both treaties in effect, the Biden administration will have a hard time to form any coalition to contain China in a meaningful way and makes a continued trade war against China increasingly futile.

China, EU to Sign Landmark Investment Treaty by December, Chamber Head Says

(Yicai Global) Nov. 16 -- China and Europe are planning to pen an agreement that should ease market access on both sides as soon as this year after more than six years of negotiations, according to the chief of a Chinese business network in Europe.

The parties are in the final sprint to complete negotiations about the EU-China Comprehensive Agreement on Investment by December, The Paper reported today, citing Zhou Lihong, chairwoman of the China Chamber of Commerce to the European Union.

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[AndrewS]

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.

As per HSBC, the RCEP economic zone is expected to become larger than the rest of the world combined by 2030.
And that's without India joining.

So there's no way to economically isolate China.

Even if India doesn’t return to the deal, the current 15 RCEP participating economies will grow to account for 50% of global output by 2030, according to a HSBC report on Sunday.

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[Orthan]

Another extremely important trade deal - the EU-China Comprehensive Agreement on Investment, will be signed before the end of this year, after more than 6 years of negotiation.

I have made an internet search. Not saying its not true, but i havent found any other site that mentions any progress in this agreement.

 

[Deleted member 15887]

As per HSBC, the RCEP economic zone is expected to become larger than the rest of the world combined by 2030.
And that's without India joining.

So there's no way to economically isolate China.

The way RCEP helps China is by helping China's exporters find new markets, to reduce reliance on the US market. I'm not concerned about competition from Vietnamese exporters, China's advantages of the consumer goods, capital goods, and electronics goods industries first and foremost is economies of scale, and China's rapidly increasing manufacturing automation (by my prediction by 2025 China's industrial robot density being above 600 per 10000 workers) means China can largely stave off competition for Southeast Asia.

 

[AndrewS]

The way RCEP helps China is by helping China's exporters find new markets, to reduce reliance on the US market. I'm not concerned about competition from Vietnamese exporters, China's advantages of the consumer goods, capital goods, and electronics goods industries first and foremost is economies of scale, and China's rapidly increasing manufacturing automation (by my prediction by 2025 China's industrial robot density being above 600 per 10000 workers) means China can largely stave off competition for Southeast Asia.

Generally agree.

But I think China's robot density realistically will be more like 400 per 10000 workers in 2025.

 

[localizer]

Haha this guy:

https://twitter.com/i/web/status/1328320426641002496

 

[nastya1]

Trump admin able find antiChina alliance at Europe but not at Asia. That's why RCEP is a coup for China. Trump admin hitting China so hard with a racist overtone that's scaring rest of the Asian countries. They can sugar coat it as main target is Chinese communist party but rest of folks can see through it that US trying use any means to destroy a rising near peer Asian country that doesn't subjugate itself to the will of US

 

[hashtagpls]

Trump admin able find antiChina alliance at Europe but not at Asia. That's why RCEP is a coup for China. Trump admin hitting China so hard with a racist overtone that's scaring rest of the Asian countries. They can sugar coat it as main target is Chinese communist party but rest of folks can see through it that US trying use any means to destroy a rising near peer Asian country that doesn't subjugate itself to the will of US

Yep, that's the reason why Trump admin's "whole of society" race war rhetoric makes Asians uncomfortable but finds a ready audience in western europe

 

[localizer]

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[ansy1968]

Trump admin able find antiChina alliance at Europe but not at Asia. That's why RCEP is a coup for China. Trump admin hitting China so hard with a racist overtone that's scaring rest of the Asian countries. They can sugar coat it as main target is Chinese communist party but rest of folks can see through it that US trying use any means to destroy a rising near peer Asian country that doesn't subjugate itself to the will of US

Hi nastya1,

I give you another reason, PROXIMITY, we're neighbors ,a large productive one at that, with history of trading with each other with RESPECT and HUMILITY.