That said banking regulations will hurt Ant/Alipay's bottom line. They gave very generous interest rates when you put money in Alipay. Probably won't see those rates after the regulations are put in place.
Chinese Economics Thread
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That said banking regulations will hurt Ant/Alipay's bottom line. They gave very generous interest rates when you put money in Alipay. Probably won't see those rates after the regulations are put in place.
If you take it a step further, a greater number of wealthy leads to "elite overproduction" as Turchin calls it.
So you have a much larger elite competing for the same number of political positions.
This leads to a surplus of bored, arrogant, disaffected wealthy people who try to take power by manipulating the masses, and who want destroy the existing systems (eg. The Trumps, Navarros, Bannons etc)
Keep in mind both China and the USSR made tremendous economic and scientific progress during periods of planned economy. What was motivating Qian Xuesen and his research team? It wasn't wealth. The notion that communism fails due to lack of incentive is a western propaganda point and one that the Chinese government rejects. The notion that communism seeks and equal wealth distribution is also a deliberate misrepresentation of Marxist communism. The maxim: "From each according to his ability to each according to his need" implies and unequal distribution since the abilities and needs of individuals are different. Wealth is not money sitting in Jack Ma's bank account, nor is it mansions and nice cars. If anything, the creation of luxuries is anti-wealth, it takes vaulable natural resources and human talent and directs it into creating fancy toys for the few. Even Adam Smith condemned the aristocracy hiring servants as an unproductive drain on the wealth of the nation, luxury consumption is similar. Real wealth is the industrial, agricultural, scientific, and cultural capability of a society. Creating wealth depends on the labour of your entire society, it's only natural that those who did the work partake in the benefits of their labour.
It's impossible to have a normal distribution for wealth since wealth is positive quantity. Further more, you can actually look at empirical data for income distribution (not wealth but it is the closest proxy) and it shows that income follows two distributions. First for the bottom 97% of the population income is distributed according to boltzmann-gibbs distribution and for the top 3% income is distributed according to power law distribution (pareto distribution). You can see the work for Victor Yakovenko for more details:
This shows that income is already highly skewed and it is even more skewed for higher income groups.
Hereditary wealth, and by extension, political power is a real and rots what little promise of social mobility that remains in liberal capitalism. China should carefully study the problems in the west and avoid replicating them.
As shown above, wealth distribution has always been skewed yet where are the revolutions in the advanced capitalist countries?
Game theory is the latest form of apologetics for capitalism. Mainstream economics is so divorced from reality that new forms of economic theology need to be invented to justify the capitalism.
This is correct. Except no country in contemporary history has shut itself from global trade. Embargos and sanctions are imposed by outsiders.
Lol, sorry for that...if this right wing narrative was...right, builders, factory workers, miners, farmers etc were supposed to be millionaires. But in real capitalist world, millionaires hate sweating
they get others to do it for them
It is a weird world.
Capital is global.
All that money they are printing in the United States, that goes abroad and into the Chinese stock market.
What does that suppose to mean?
That means the US Federal Reserve can inflate a Chinese stock market bubble.
The Chinese Communist Party will spend the next decade trying to talk down or deflate the Chinese stock bubble caused by all the liquidity from the US Federal Reserve bank via their QE to infinity.
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Well, look on the bright side.
At least the traditional role of the communist trying to downgrade the stcok market will be practised.
Hi horse,It is a weird world.
Capital is global.
All that money they are printing in the United States, that goes abroad and into the Chinese stock market.
What does that suppose to mean?
That means the US Federal Reserve can inflate a Chinese stock market bubble.
The Chinese Communist Party will spend the next decade trying to talk down or deflate the Chinese stock bubble caused by all the liquidity from the US Federal Reserve bank via their QE to infinity.
--------------- ----------------- ----------------
Well, look on the bright side.
At least the traditional role of the communist trying to downgrade the stcok market will be practised.
good day bro,
Do you think China should maintain it's capital control policy? I completely agree with you, QE had become a means to export American problem to the rest of the world, during the 2008 financial crisis, there is an agreement between the world central banks that QE will be limited as the US sorted out it's problem, as the years goes by the FED instead of using prudent monetary policy had been corrupted by wall street and also allow themselves to be use politically.(unfortunately Powell interest hike policy had been hijacked by CV19).
As China do the opposite, instead of doing QE, they deleverage, reform and open up its financial market , it will attract a lot of investment (hot money)that in return will inflate the bubble inside the Chinese stock market. It is the only Central Bank with a positive interest rate regime.
The Chinese Communist Party will spend the next decade trying to talk down or deflate the Chinese stock bubble caused by all the liquidity from the US Federal Reserve bank via their QE to infinity.
So with the addition of YUAN appreciation, internationalization and Digitalization use of YUAN can it inflate or deflate the Chinese stock market? I know that the Chinese stock market is not an indicator of the REAL ECONOMY, but if left unregulated it will become one. For me Capital control should be maintain until China reaches its goal of Comprehensive National Power.
China 2020 Electricity Production Increased Despite Pandemic
*In November, 2020, China’s power generation was 641.9 billion kwh, an increase of 6.8 percent year-on-year.
*From January to October, 2020, China’s power generation reached 6,028.8 billion kwh, up 1.4 percent year on year. In October, the power generation was 609.4 billion kwh, an increase of 4.6 percent year-on-year.
*In November, 2020, China’s Steel production was 117.34 million tons, an increase of 10.8 percent; cement was 243.3 million tons, an increase of 7.7 percent; ten kinds of non-ferrous metals was 5.49 million tons, an increase of 6.1 percent; ethylene was 1.98 million tons, an increase of 11.6 percent; automobile was 2.783 million vehicles, an increase of 8.1 percent, including 207 thousand new energy vehicles, an increase of 99.0 percent.
China Wind Power Up 11%, Solar Power Up 8% and Nuclear Up 5% in 2020
Nuclear Energy generation increased 5% in 2020 over 2019. China’s nuclear energy production was 331 TWh for the first 11 months of 2020. China generated 349 TWh in 2019 and is on track to generate 367 TWh in 2020.
Hydro power in China was up 5% over 2019.
China’s energy production was:
Type of Energy Generation 2019 / 2020 Estimate
Hydro 1302 TWh (18%) 1366 TWh
Nuclear 349 TWh (5%) 367 TWh
Wind 406 TWh (6%) 413 TWh
Solar 117 TWh (3%) 141 TWh.
China National Bureau of Statistics reported:
* China’s wind power is up 11% over 2019
* China’s Solar power was up 8% over 2019
* China nuclear and hydro were each up about 5%.
SOURCES: