A healthy economy will always have some inflation, due to increase in productivity. A oderate amount of inflation would also promote spending.
Those Taiwanese are misinformed.
Chinese Economics Thread
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Those Taiwanese are misinformed.
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On the topic of RCEP, since it hasn't been discussed in a while:
Per , the RCEP trade agreement, consisting of 15 Asia-Pacific economies, sans India, will be signed this Sunday, ending 7 years of trade negotiations.
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With the finalization and implementation of this agreement, it is likely to become the world's largest-ever free-trade agreement, surpassing even the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) that came into effect in 2018. RCEP countries represent nearly 30% of the global economy, and could add up to $209 billion dollars to global output in the coming years.
Brookings Institute postulates the impact of RCEP in regards to China's economic and geopolitical clout in an from back in July. It argues that the implementation of RCEP, the absence of India from the agreement, and the US withdrawal from the former TPP agreement (now CPTPP) have given China an immense opportunity to strengthen its leverage and influence in a primarily East Asian-dominated regional bloc.
The article notes that the RCEP agreement has the potential to fully offset any detrimental impacts of the US-China trade war, by helping to reduce the costs of doing business in East Asia, by deepening integration of advantages in technology, manufacturing, agriculture, and natural resources. Importantly, the economic ties between China, Japan, and South Korea are expected to further deepen, as RCEP is significant in being the first free trade deal between the three East Asian powerhouses. As such, RCEP is expected to benefit China the most; according to Brookings, China may reap $100 billion worth of economic benefits from RCEP, and further shape East Asia as a sphere of deep Chinese economic influence.
For the Asia-Pacific at large, the RCEP trade agreement may have significant implications for the years ahead. Depending on China's priorities, Brookings has elucidated that China may either further RCEP as a way to shore up its own economic interests, or restore faith and interest in regional international cooperation by shaping the rules of Asian-Pacific Commerce, with the latter scenario potentially significantly enhancing China's regional influence overall, as well potentially reinforcing China's central role and focus within the region's supply chains and trade networks.
The absence of India, as well as a lack of US involvement in Asia-Pacific trade agreements such as CPTPP, may further have implications for the region at large. In 2017, President Trump pulled the US out of the then-TPP agreement, weakening its influence and effectiveness as an anti-China trade bloc as originally intended by former President Obama, and giving much more impetus in the region to rush towards finalizing RCEP. Late last year, India decided to pull out of RCEP, citing fears of cheap Chinese manufacturing impacting domestic industries, and dissatisfaction with the agreement not being favourable in terms of information services trade, a major Indian economic activity. Both actions are likely to have consequences in terms of further benefiting China's regional clout, and leaving China without a counterweight in the RCEP economic bloc.
In reaction to India's withdrawal, Japan had originally signaled its intention to leave the agreement if India's involvement was not guaranteed. However, with the onset of the COVID-19 pandemic and resulting global economic crisis, Japan seems to have changed its mind and decided to stay in a likely China-dominated RCEP. , in order to balance China's accelerating regional economic influence in trade and supply chains as a result of the deal, Japan has announced initiatives such as the "Supply Chain Resiliency Initiative" with Australia and India; it remains to be seen if such actions are able to counter the impact of RCEP on regional trade, supply chains, and integration. Despite this, Japan and Australia, two countries with complicated relations with China to say the least, have had a tough choice to make this year: either remain in the agreement or lose out on opportunities to energize their respective economic recoveries by leaving the deal. Other regional economies have decided to press forwards, even without India:
Per , the RCEP trade agreement, consisting of 15 Asia-Pacific economies, sans India, will be signed this Sunday, ending 7 years of trade negotiations.
---------------------------------------------------------------------------------------------------------------------------------------------------------
With the finalization and implementation of this agreement, it is likely to become the world's largest-ever free-trade agreement, surpassing even the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) that came into effect in 2018. RCEP countries represent nearly 30% of the global economy, and could add up to $209 billion dollars to global output in the coming years.
Brookings Institute postulates the impact of RCEP in regards to China's economic and geopolitical clout in an from back in July. It argues that the implementation of RCEP, the absence of India from the agreement, and the US withdrawal from the former TPP agreement (now CPTPP) have given China an immense opportunity to strengthen its leverage and influence in a primarily East Asian-dominated regional bloc.
The article notes that the RCEP agreement has the potential to fully offset any detrimental impacts of the US-China trade war, by helping to reduce the costs of doing business in East Asia, by deepening integration of advantages in technology, manufacturing, agriculture, and natural resources. Importantly, the economic ties between China, Japan, and South Korea are expected to further deepen, as RCEP is significant in being the first free trade deal between the three East Asian powerhouses. As such, RCEP is expected to benefit China the most; according to Brookings, China may reap $100 billion worth of economic benefits from RCEP, and further shape East Asia as a sphere of deep Chinese economic influence.
For the Asia-Pacific at large, the RCEP trade agreement may have significant implications for the years ahead. Depending on China's priorities, Brookings has elucidated that China may either further RCEP as a way to shore up its own economic interests, or restore faith and interest in regional international cooperation by shaping the rules of Asian-Pacific Commerce, with the latter scenario potentially significantly enhancing China's regional influence overall, as well potentially reinforcing China's central role and focus within the region's supply chains and trade networks.
The absence of India, as well as a lack of US involvement in Asia-Pacific trade agreements such as CPTPP, may further have implications for the region at large. In 2017, President Trump pulled the US out of the then-TPP agreement, weakening its influence and effectiveness as an anti-China trade bloc as originally intended by former President Obama, and giving much more impetus in the region to rush towards finalizing RCEP. Late last year, India decided to pull out of RCEP, citing fears of cheap Chinese manufacturing impacting domestic industries, and dissatisfaction with the agreement not being favourable in terms of information services trade, a major Indian economic activity. Both actions are likely to have consequences in terms of further benefiting China's regional clout, and leaving China without a counterweight in the RCEP economic bloc.
In reaction to India's withdrawal, Japan had originally signaled its intention to leave the agreement if India's involvement was not guaranteed. However, with the onset of the COVID-19 pandemic and resulting global economic crisis, Japan seems to have changed its mind and decided to stay in a likely China-dominated RCEP. , in order to balance China's accelerating regional economic influence in trade and supply chains as a result of the deal, Japan has announced initiatives such as the "Supply Chain Resiliency Initiative" with Australia and India; it remains to be seen if such actions are able to counter the impact of RCEP on regional trade, supply chains, and integration. Despite this, Japan and Australia, two countries with complicated relations with China to say the least, have had a tough choice to make this year: either remain in the agreement or lose out on opportunities to energize their respective economic recoveries by leaving the deal. Other regional economies have decided to press forwards, even without India:
Engineers have to be exact. Accountants can make 72 into 70. Or 7.
Could you imagine building a bridge and finding it won't meet in the middle, because some accountant said it's close enough. Lol
We accountants have to round up or down or the time to make figures presentable. Imagine I say it'll cost you £1,234,567 or £1,230,000 which would you rather have? In addition, you won't believe the amount if estimate we have to use. Lol
India has been a foot-dragger in almost any trade negotiations. Apparently, India has decided to cut its economic ties with China, so any promise that India be a potential large market for China is also diminished. With the signing of RCEP without India, any hope that India harbors to take supply chain away from China, an extraordinarily long shot in the best case, will go down to the drain.
There is no counter from the west to this RCEP so they would rather not talk about it.
That old TPP, I was not that impressed. That TPP would have enshrined the Untied States with those patents laws as the top country in that pack, forever. It would have been good for the United States to reap rentier monopoly profits forever, but maybe not so good for everyone else, including the American worker.
The other disadvantage TPP would have had compared to RCEP, is that one of them would be growing a lot faster. We know which one. The faster the growth, the more opportunity there is. Plus the fact the patent profits all flow upwards.
China wants RCEP, but ASEAN really wants it. No one in South East Asia can rely on the American market too much anymore. Also seems to me that this will be the world's largest trading block rather soon, so there is real scale here. And it is growing fast.
Suppose you are a company, and want to export to RCEP countries. But there are tariffs, because of tariff-man and Democrats in USA. Best thing to do is for TELSA build a Shanghai plant and export in the region for example.
Check out the chart.
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The pandemic is a great opportunity for the domestic tourist destinations and amusement parks to attract Chinese tourists. Chinese domestic tourism industry is underdeveloped but has a lot of potential. Many Western tourist attractions and universities are overrated and wasted of money which siphoned hundreds of billions dollars from China each year.
India just wants to send its mass of walking useless mouths to other countries so they become someone else's problem; there is nothing to be gained from India joining any form of RCEP or any FTA with any country; the first country that signs the type of accreditation endorsement agreement that India wanted is going to be swamped with walking useless mouths from the subcontinent. And once those walking useless mouths get into a major corporation you can kiss goodbye to competitiveness and viability and look forward to such lulz as this:
Ray Dalio says some pretty sensible stuff about China; of course he's gonna make money, he hasn't got his head stuck up his arse like that hyman idiot who got burned trying to short HK and Soros who also tried to short HK as well and when he tried to withdraw his money, the HK stock exchange mysteriously suffered a technical blackout. Man that was some serious lulz.