Chinese Economics Thread

[AssassinsMace]

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They're still trying to undermine Chinese tech companies yet they complain about how China is suppose to buy their oil under the phase one agreement.

 

[PikeCowboy]

^the terms of the phase 1 agreement is that all purchases are at market rates, correct me if I'm wrong

 

[AssassinsMace]

I don't think it means all the oil China buys has to be from the US. If the roles were reverse, I'm sure the US seeing China continually trying to undermine US tech companies as a violation of the phase one deal. Besides if China fulfilled it's end of the deal early, you don't think Trump would start making more demands? The US already got their money. If the US plays games, China doesn't have fulfil its part of the deal.

 

[AssassinsMace]

I remember reading that only 6% of oil bought on the market actually goes to being used. The other 94% is just Wall Street profiting from oil being traded back and forth. China buys a lot of oil now on the cheap can make huge profits when it goes back up. And don't forget China can too play geopolitics with it.

 

[Tam]

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They're still trying to undermine Chinese tech companies yet they complain about how China is suppose to buy their oil under the phase one agreement.

At the negative prices, that's like the US is paying China to take the oil away. China should be taking the opportunity to stock up their national reserves.

 

[hydrogenpi]

At the negative prices, that's like the US is paying China to take the oil away. China should be taking the opportunity to stock up their national reserves.

Doesn't gas go bad after a few months if not used, preservatives are expensive no?

 

[10thman]

China’s central bank is introducing its own digital currency in a pilot program that will be tested across 4 cities.

 

[duskseeker]

Doesn't gas go bad after a few months if not used, preservatives are expensive no?

Yes, but unprocessed crude doesn't. Here's a random tip, Helicopters use Kerosene as fuel.

 

[AndrewS]

Historically low shipping fees.

Oil futures are also just pieces of paper that does not protect you from actual production or transportation disruptions.

For example, if COVID19 ends up shutting down ME and Russian oilfields, having oil futures is meaningless if there isn’t actually the physical supply available anymore.

Countries buy oil for strategic reserves and contingency planning, not to make maximum profit.

Depends if it is a contract that specifies actual physical delivery of the product. In which case, the delivering party is in breach and liable to pay.

But the vast majority of oil trading is based on paper contacts which don't specify delivery. They are just based on the price of the actual contracts, so yes, they don't protect you from actual production or transportation disruptions.

 

[Tam]

Doesn't gas go bad after a few months if not used, preservatives are expensive no?

Its not food. Its fossil. It has stayed that way for millions of years.