Chinese Economics Thread

[krautmeister]

Agreed

But gold does have some intrinsic value because of its industrial applications, particularly in electronics.

If Gold wasn't seen as a financial asset store, and merely as a commodity like Iron, then yes, the price should be a lot lower.
And with a lower price, there should be more industrial usage of Gold.

As for Bitcoin, it has NO intrinsic value which makes it essential.

Fiat currencies issued by the Chinese or US government will always be accepted, whether in paper or digital form.
And governments can compel the use of these currencies in their territories through the law and also by accepting them as payment for taxes.

Agreed on all points. However, since the Zeitgeist still supports the notion that Bitcoin is digital gold, that makes it worth something in the same sense that any brand is worth something in the minds of those who believe its worth. In a very real way, this is how the US and other similar powers have maintained much of their success through soft power. So, even in a world where genocide on a continental scale occurred only 2 generations removed from living memory, those same genocidal maniacs can falsely accuse others of literally "ANYTHING" and their propaganda machine will make almost everybody believe it. This is regardless of if there is actual proof debunking the accusations. Mind manipulation is manifold and has been refined into an art. I think this is why it is becoming more and more difficult for the average person to make informed decisions. There is so much BS out there that it is getting harder and harder to know the truth.

 

[escobar]

https://twitter.com/i/web/status/1395058547415736325

https://twitter.com/i/web/status/1395785565589626882

 

[voyager1]

https://twitter.com/i/web/status/1395058547415736325

https://twitter.com/i/web/status/1395785565589626882

This is obvious. China is also seriously investing in R&D of different designs of 4th generation of nuclear plants which would be a big step up and improvement from the current 3rd generation plants

I am actually curious how Russia will continue its economic cooperation with China while Xi has decided to phase out hydrocarbons

Nuclear cooperation can be continued as Russia is very strong commercially

The only other sector I can see is minerals and agricultural sales from Russia to China which if Russia plays its cards correctly it could become China's Australia and make bank by selling dirt and food to the Chinese lol

 

[HybridHypothesis]

There are major moves being made against crypto in China apparently.

https://twitter.com/i/web/status/1395757123036794888

I remember that the DCEP trials went well earlier this year. Perhaps its almost time for a full scale rollout?

 

[voyager1]

There are major moves being made against crypto in China apparently.

https://twitter.com/i/web/status/1395757123036794888

I remember that the DCEP trials went well earlier this year. Perhaps its almost time for a full scale rollout?

Wow did the VP (i assume Vice Premier) himself order the recent crackdown?

Something serious must be cooking up in Beijing

Perhaps its almost time for a full scale rollout?

That would be wild. I can already hear the West's hysteria about it lol

But yes, I also agree that this must have something to do with DCEP

China aint playing around after the Trump sanctions. It is going straight for US's throat by introducing DCEP and banning any cryptocurrency competition ASAP

 

[HybridHypothesis]

On second thought, the ban may be far less severe than I expected.

https://twitter.com/i/web/status/1395792861786873856

Can anyone here confirm his translation?

 

[SimaQian]

Wow did the VP (i assume Vice Premier) himself order the recent crackdown?

Something serious must be cooking up in Beijing



That would be wild. I can already hear the West's hysteria about it lol

But yes, I also agree that this must have something to do with DCEP

China aint playing around after the Trump sanctions. It is going straight for US's throat by introducing DCEP and banning any cryptocurrency competition ASAP

No. DCEP is entirely different from BTC both in usage and technical implementation but uses same core blockchain technology where it is very difficult to alter the history of transactions.

BTC is decentralized while DCEP is point to point. In DCEP when a transaction is done between person A and B, the changes are only limited to A and B block chains. So it doesnt use any computing power other than A and B computing devices.

DCEP is just the same as real RMB and the exchange rate is 1 to 1. It is not something for speculation. The usage of DCEP is for strategic domestic and foreign reasons.

The primary reason why China authorities are tightening the rules on cryptos is to prevent those corrupt officials to hide their money or prevent the temptation to hide money on these speculative anonymous products. So they kill the source, the convertability of money to cryptos and vice versa.

 

[voyager1]

No. DCEP is entirely different from BTC both in usage and technical implementation but uses same core blockchain technology where it is very difficult to alter the history of transactions.

I know they are different implementations.

But cryptocurrencies still provide competition to DCEP. if you hold Bitcoins, Ether, dogecoin (lol!) and make transactions with them then the DCEP usage will naturally be low

The more players enter the digital currency market the more difficult will be for DCEP to be widely adopted. You would have some people with BTC, others with Ether etc. It would be a total mess and would result in the DCEP not taking off

Which is why China is now coming out saying something very simple.
Ban all cryptocurrencies and get done with competing with the state on issuing currency, you are only allowed to hold DCEP now

You also saw the crack-down on Alipay and other tech companies. All these companies will now start accepting DCEP to help it gain users quickly.

If any company tries to pull any tricks against DCEP, then Papa Xi will get him for sure. Make no mistake, DCEP is a national security issue. Anyone who tries to resist it, will get cleaned up real quick. No more games with DCEP, its either all in or we will take care of you.

 

[krautmeister]

The only other sector I can see is minerals and agricultural sales from Russia to China which if Russia plays its cards correctly it could become China's Australia and make bank by selling dirt and food to the Chinese lol

Be thankful for Russia's partnership. China cultivates relationships and makes friends if it can because it is the right thing to do and good for China and all involved. Many Russians have been insulting when it comes to China's technology, but this is just their pride showing because their are reacting to their own relative decline.

 

[voyager1]

Be thankful for Russia's partnership. China cultivates relationships and makes friends if it can because it is the right thing to do and good for China and all involved. Many Russians have been insulting when it comes to China's technology, but this is just their pride showing because their are reacting to their own relative decline.

Oh definetely. I didn't mean to insult Russians

I was saying it as a compliment actually. Like why do all this hard work, get so many worries etc when you can just dig some dirt and food from the ground and sell it to the Chinese.

Much easier and comfortable life. And if these sales are made by state owned companies then the wealth can be distributed to the common Russian people to enjoy the fruits of this Russia-China cooperation and friendship

I also know and understand why some Russians may feel that way about Chinese technology. The Soviet collapse, and the amazing transformation of China from dirt poor to an almost superpower is hard to comprehend for think-tanks, not even mentioning about the common Russian
These things take time to change, but it will happen eventually

And for the end I will say this again. Russia's friendship towards China, is the MOST important relationship that China has right now. I would even go as far as to say that between EU and Russia, China would 100% of the time go for Russia.