Chinese Economics Thread
- Thread starter Norfolk
- Start date
China's largest import items are natural resources. Since China is now cracking down on real estate and local government debt means China is spending less on condos and infrastructure and therefor need to import less raw materials. And consumption in China is slowing too that is another factor. Exports are jumping because of "money printing" in the West.
China could also be consolidating the supply chain as disruptions abroad increases China at the same time has been investing more in industry.
escobar
Brigadier
China’s surprisingly strong exports come more from increased cost than demand. Such export expansion, driven more by price than scale, won’t bring any substantial increases for enterprises; even worse, their profits might be squeezed, as the increase in production and freight costs may not be fully passed on to the price.
China industrial production cost rises about 10% but export increases 27%. You do the math. In addition, many manufacturers are having difficulty to take more orders due to overwhelming demands.
Hui Ka Yan still is worth 10 billion; surely after the misery he has wrought on the country, he should be stripped of his billionaire status and have 10 billions in assets sold to fix the problem
But his company's debt is way higher than his net worth.
It looks like they are raising prices, and also the value added to Chinese products is higher than before.
True. But this serves as a warning to other real estate CEOs who thinks that they can come out of this unscathed.
It doesn't matter. If he behaved recklessly then he should be held responsible. For eg ,In NZ board members can be held personally liable for the woes of a billion dollar company should it be determined they just automatically rubber stamped decisions made by the executive without exercising due diligence on the plans of the management.