Chinese Economics Thread

Jura The idiot

Jura The idiot

General
now I read this
Commentary: Stable growth of foreign trade reflects China's strong economic resilience
Xinhua| 2019-09-12 20:37:01
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Continuing the steady growth momentum, China's foreign trade of goods exceeded 20 trillion yuan (about 2.8 trillion U.S. dollars) from January to August, up 3.6 percent year on year, according to the latest figures by China's General Administration of Customs.

This is part of the extraordinary performance of the Chinese economy, manifesting its strong resilience to navigate the currents of rising trade protectionism and unilateralism.

However, it cannot be achieved without China's broad circle of trade partners across the world. As the idiom goes, the more the merrier, so China always keeps its door open and welcomes more friends who are willing to do business with it.

The ever-increasing amount of business orders is the best proof of the high quality of Chinese commodities and the good credibility of Chinese companies recognized by their global partners.

In the first eight months, the bilateral trade volume between China and the European Union (EU) rose 9.7 percent from a year earlier to 3.15 trillion yuan, as EU continued to be China's largest trading partner. Trade between the ASEAN countries and China increased 11.7 percent year on year to 2.74 trillion yuan.

As the Belt and Road Initiative moves forward, the circle of China's trade partners is becoming larger and more diverse, which means more opportunities and benefits for all participants. According to the customs data, China's trade with the Belt and Road countries totaled 5.83 trillion yuan for the January-August period, up 9.9 percent year on year.

In addition to the stable growth rate, China also saw an optimized trade mix and various new forms of foreign trade that are fast-evolving.

From January to August, general trade accounted for 59.8 percent of the total foreign trade. While the share of traditional processing trade declined, China's exports in higher value-added industries such as solar battery and metal-working machine tools gained stronger momentum. Bonded imports and exports increased 9.9 percent year on year to 2.31 trillion yuan, with various new forms of trade booming.

The stable growth is underpinned by China's efforts to improve commercial environment and unleash the potential of private companies through tax cuts and fee reductions.

Private businesses reported notable growth in the first eight months, with the trade volume increasing 11.2 percent to 8.49 trillion yuan. The amount accounted for 42.2 percent of the total trade volume in the period, up 2.9 percentage points year on year.

While challenges are looming up ahead, the long-term trend of China's foreign trade and overall economy is promising, which will not be interrupted as long as Chinese people can maintain their composure and diligence.
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supercat

supercat

Major
China’s new digital currency could encourage worldwide use of the yuan, says CEO

Key Points
  • The People’s Bank of China (PBOC) last month said it’s close to launching its own digital yuan, arguing that the rationale behind the move is to “protect” its foreign exchange sovereignty.
  • “This becomes a mechanism by which (the yuan) can be used in everyday transactions all around the world,” said Circle CEO Jeremy Allaire.
China’s proposed digital currency could trigger global use of the yuan, according to the CEO of American cryptocurrency financial services firm Circle.

The
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last month announced that
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, saying that the rationale behind the move is to “protect” its foreign exchange sovereignty.

China’s central bank plans to launch its digital token through a two-tier system, under which both the PBOC and commercial banks would be legitimate issuers.

“I look at this really meeting several goals. But, I think the bigger opportunity here is this is a way for the Chinese yuan to be distributed globally,” Circle CEO Jeremy Allaire told CNBC’s “Squawk Box” on Wednesday.

“This becomes a mechanism by which (the yuan) can be used in everyday transactions all around the world,” added Allaire, an internet entrepreneur who also founded video streaming firm Brightcove. “It’s ultimately a foundation for the internationalization” of the yuan.

Beijing has in recent years pushed hard to get more international entities to use the yuan outside China.

The U.S. dollar is currently the world’s “
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” — about
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, according to the IMF, and about 40 percent of the world’s debt is denominated in dollars.

Mu Changchun, deputy director of the PBOC’s payments department, said that the new digital currency will have
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. It would be as safe as central-bank issued paper notes, he claimed, and could be used on platforms such as
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WeChat and even without an internet connection.

Libra,
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, will be backed by relatively stable government-backed money — unlike bitcoin and other cryptocurrencies, which can be highly volatile and speculative.

Facebook says it’s designed to enable anyone to securely store money for free on their phone and to allow people to securely send and receive Libra around the world.

Allaire pointed out that China’s proposed digital currency “bypasses the Western banking system, SWIFT, things like this.” He was referring to the Belgium-based Society of Worldwide InterBank Financial Telecommunications that enables financial institutions to send and receive information on cross-border payments.

The digital currency is “quite strategic,” he said. Allaire added that it would let authorities more easily track monetary supply — allowing Beijing to tackle issues such as corruption and money laundering.
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AssassinsMace

AssassinsMace

Lieutenant General
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Japan Inc increasingly hit by trade war, but few shifting from China: Reuters poll

By Tetsushi Kajimoto

TOKYO (Reuters) - Half of Japanese companies have seen their profits hurt by the U.S.-China trade war, although few firms are planning to shift operations or supply chains out of China yet, a Reuters poll found.

The Reuters Corporate Survey highlights the worsening collateral damage to global trade, beyond the immediate China-U.S. relationship, from the tariffs Washington and Beijing have slapped on each other's goods.

The trade war between the world's two biggest economies and a related global slowdown are hurting output and exports in Japan. Manufacturers' confidence hit a six-and-half year low in September, the Reuters Tankan poll found on Thursday.

Washington and Beijing imposed new tariffs on Sept. 1 in the latest escalation, though financial markets maintain hope for a breakthrough from talks that are to resume mid-month.

The Reuters survey showed 45% of Japanese firms have had their profits affected to some extent by the U.S.-China tariffs, while 6% have been greatly affected. Some 42% of firms said they have hardly been hit, and 7% see no impact at all.

That is worse than a similar Reuters poll last October that found just one-third of Japanese companies hit, with 58% of Japanese firms hardly affected by the trade war and 8% seeing no impact.

The latest survey, conducted Aug. 29-Sept. 9 for Reuters by Nikkei Research, canvassed 504 big and midsize companies, of which 250 responded on condition of anonymity to speak freely.

Corporate managers fretted about ripple effects ranging from exports and investment to supply chains and broader economic growth.

"I'm concerned that (the trade war) could trigger a global depression," wrote a manager at an electric-machinery maker, responding to questions in the survey.

A retailer also cited fears of a recession, which the manager said could hurt sales to Chinese tourists - a strong source of growth for Japan's longest postwar expansion - and badly affect the establishment of new businesses in China.

"I strongly hope that the U.S.-China confrontation is resolved quickly as it is a destabilising factor for global economy and weighing on business sentiment," wrote a manager at a machinery maker.

Despite the damage so far, just 11% of Japanese firms said they are considering moving their business bases or supply chains out of China. About half said they had no specific plans to move out of China.

However, since more than one-third of companies said they have no related business in China, the proportion of companies active there that are considering moving is relatively higher.

Asian countries outside China were by far the most popular destination for companies relocating, followed by those bringing operations home to Japan, with North America and Europe lagging behind as destinations, the survey showed.


(Reporting by Tetsushi Kajimoto; Editing by William Mallard and Sam Holmes)
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There goes that notion that US allies will help the US in ganging up against China. It's just an opportunity for any US ally to make all the money while others don't. The only US companies leaving China are the smaller companies that have only Americans as customers. The ones that have international customers will be staying in China and they'll just avoid shipping to the US to avoid tariffs while Americans will have to pay the added costs from manufacturing outside of China. Trump may not understand that because last year he thought the US made a lot of money from China's Single's Day thinking products sold and shipped within China were tariffed by the US.
 
T

Tam

Brigadier
Registered Member
I don't know and I don't think China will ever get rid of or even want to do so, with Boeing. Boeing does need to convince the Chinese aviation regulation authority --- and not just the FAA which took a banana in the face on this event --- that their 737-Maxes are going to be safe.

 
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A

Anlsvrthng

Captain
Registered Member
supercat said:
China’s new digital currency could encourage worldwide use of the yuan, says CEO
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How?

China running a net trade surplus, means there is a LACK of yuans on the global market.


To be an effective mediator of transactions it needs to presents in similar volume in the hand of international institutions/ individuals like the pound/dollar.

I mean, it is against the basic arithmetic .
 
vincent

vincent

Grumpy Old Man
Staff member
Moderator - World Affairs
Anlsvrthng said:
How?

China running a net trade surplus, means there is a LACK of yuans on the global market.


To be an effective mediator of transactions it needs to presents in similar volume in the hand of international institutions/ individuals like the pound/dollar.

I mean, it is against the basic arithmetic .
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Ever heard of currency SWAP agreements?

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