Chinese Economics Thread

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Red Moon

Junior Member
FairAndUnbiased said:
doesn't matter, foreign countries will be eating the increased costs in the end. this also provides market mechanisms to force additional purchases of non-fossil electricity and boosts funding for non-fossil electricity research and construction. It is short term pain for long term gain.

Easy fossil fuel and lax emission regulations is a crutch just like cheap credit was a crutch for uncompetitive and uninnovative companies like Evergrande. Just wait 5-10 years and see who is leading in energy and who is still clinging to their dreams of clean coal and gas cars.

China is not a place that lacks anything but motivation. Once a motive is given, it will be done.
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weig2000 said:
The problem is this kind of arbitrary, abrupt administrative measures are terrible means to achieve the goals. Better to use market mechanism to signal and implement the policy goals in this case.
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Ecological and climate change commitments are only the context of the current problem with energy, not their cause. The government is trying to hold down inflation (successfully, so far) at a time when there is a sharp surge in commodity prices. They seem to have scored a victory on iron ore recently, largely through releasing stockpiles into the market. They have also released oil reserves into the market, though I don't know the results. Coal, in any case, is a hard nut to crack for some reason, and the government has simply refused to allow an increase in electricity rates. This means the power generators lose money on fuel, and they either don't want to or are unable to bite the bullet.

In the last few days there has been some initiative to increase coal production in China. Reopen closed mines? or just increase output of existing ones?

This type of stuff has happened before, I believe with gasoline shortages when the government was forcing sinopec and others to swallow the high price of oil (around 2008?). So it is not optimal, but I don't think it is arbitrary either.
 
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HereToSeePics

Junior Member
Staff member
Moderator - World Affairs
Registered Member
siegecrossbow said:
The only reason that the Biden admin retained the tariffs is for political optics. Now that they’ve released Meng Wanzhou there is very little reason for them to continue a self harming policy, especially in light of global inflation and product shortage.
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That's assuming the gears driving US geopolitical policy are run by rational actors and underestimating both the democrats and republican's desire to manufacture a convenient adversary to appear tough on for the next round of midterm elections. Our politicians in the US have shot the country in the foot countless times for lesser things.
 
manqiangrexue

manqiangrexue

Brigadier
Tyler said:
By banning bitcoin, Chinese companies are losing money.

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Money is about contribution to society. Money is society's credit to you for your work so that you can take some things back from society from your own needs. Companies that make money without any contribution to (Chinese) society (by bitcoin mining, for example,) should be shut down as they are nothing more than a waste of human resource. The people employed there should have their skills and equipment put to work on something useful to Chinese society. A country like America that prints the global reserve would be delighted to keep your people enthralled in doing meaningless tasks for them to be rewarded with meaningless paper.
 
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9dashline

9dashline

Captain
Registered Member
manqiangrexue said:
Money is about contribution to society. Money is society's credit to you for your work so that you can take some things back from society from your own needs. Companies that make money without any contribution to (Chinese) society (by bitcoin mining, for example,) should be shut down as they are nothing more than a waste of human resource. The people employed there should have their skills and equipment put to work on something useful to Chinese society. A country like America that prints the global reserve would be delighted to keep your people enthralled in doing meaningless tasks for them to be rewarded with meaningless paper.
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Bitcoin is nothing more than an online synchronized excel spreadsheet serving the role of distributed global general ledger where people are buying and selling the accounting units to this made-up accounting system...

Even during the height of the tulip mania at least people held tulips and then tulip contracts.... whereas bitcoin is akin to trading future contracts on an entirely fictious flower that never even exists in real life in the first place...

Transaction costs means it can never be used for everyday purchases, but if it doesnt hit the blockchain then it must use a 3rd party intermiedary to facaliate settlement agregation at that point you might as well just use wechat pay that ties into digital blockchain Yuan

Energy and resources are king, money is human abstraction to count and represent the real economy...

Mining difficulty and hashing increases exponentially as remaining bitcoins approach 21 million

So people are burning mountains of coal and polluting the environment just so they can unlock additional cells on this accounting spreadsheet... when there are other countless tabs representing unlimited other cryptocurrencies that any cat or dog can cook up

Follow the money... The rise and adoption of bitcoin immenesly helped prop up Nvidia, which has remade itself from gaming company to America's top AI company and now they buying ARM and maybe TSMC

Meanwhile Tesla made more money last year from its bitcoin hodlings than from actually selling cars...

So China is burning coal and sacrificing its own electricity of citys to subsidize and prop up US spacex, AI, semiconductors and petrodollar?!
 
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