Chinese Economics Thread

[LesAdieux]

China benefits from being an island of stability in the raging clusterfuck that is the west and Eurasia. Capital is fleeing Russia and Wall Street and into Lujiazui.

most of the actuals are more than twice better than the Reuters polls expected with inflation firmly under control.

 

[Overbom]

most of the actuals are more than twice better than the Reuters polls expected with inflation firmly under control.

We should expect lower numbers for March-April.

Covid lockdowns, energy prices increased, commodities increased etc

 

[LesAdieux]

We should expect lower numbers for March-April.

Covid lockdowns, energy prices increased, commodities increased etc

the inflation can be passed on, but
the covid is getting pretty bad now.

 

[Overbom]

the inflation can be passed on, but
the covid is getting pretty bad now.

PPI was already at (near?) 2-digits. After all this mess, I can't see how they can absorb even more inflation. At some point they will have to pass the inflation to the customer.

 

[LesAdieux]

PPI was already at (near?) 2-digits. After all this mess, I can't see how they can absorb even more inflation. At some point they will have to pass the inflation to the customer.

China's PPI can stay continuously at high level for a Long time (four years was the record) with no significant impact on the economy.

 

[tonyget]

I think Yuan will never become major currency of the world

 

[yjl11]

Hi tonyget, would like to know why you think that is the case. Thanks

 

[Overbom]

About that stock market sell-off scaremongering

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The inconvenient truth is that Beijing doesn’t care how much money global investors have lost. It does not care about short-term volatility. It does, however, have its eyes on the big prize of securing its real economy. And it trusts that its domestic asset management industry will keep the Hong Kong market afloat.

An Exodus
U.S. institutional investors have about $750 billion Chinese stocks, down from $1.1 trillion a year ago.

But look at what’s been happening throughout the ongoing Hong Kong market selloff: Chinese investors have been buying on dip. It’s a sign that the offshore marketplace is not entirely broken. When the dust settles, the Hong Kong market will have become more domestic and retail-driven

It’s also almost silly to whine about market selloffs to a president who has grand ambitions to reclaim China’s status as a great world power. Panic selling by American fund managers is a small price to pay in the grand scheme of things for Xi Jinping. Unlike former U.S. President Donald Trump who always had an eye on the Dow, Xi doesn’t look at the CSI 300 or Hang Seng Index for validation.

So here’s a thought for ESG-minded global investors. Selling their stakes and whining about China becoming “uninvestable” won’t change Beijing’s mind.

 

[siegecrossbow]

They killed the goose that lays golden eggs.

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[manqiangrexue]

Also it's not just internet. China's gaming sectors have been devastated. Its EdTech has been devastated. Pretty much anything related to Chinese technology is being destroyed bit by bit, and if it's not China's government it's the US. Meanwhile the State Council keeps talking about supporting "R&D" and "innovation" but where are the actual policies? In the headlines all you see are new fines, bans, and regulations, and other crackdowns. Keep in mind that China has yet to enact a major fine on a single large Western tech company. The likes of Microsoft are still monopolizing the Chinese operating system market getting away scot-free. Apple runs a closed system and charges its Chinese app developers an arm and a leg, but apparently that's OK although Tencent's closed system is not OK. So because Microsoft and Apple are US companies Chinese anti-trust policies don't apply to it? This is like the unequal treaties of the 19th century lol.

Right now if you're Chinese and want to succeed in technology, Singapore is probably your best bet. The Southeast Asian market is about 670 million, which is bigger than the EU. So it's not bad. Also the demographics are a little better than China's.

It's been addressed many times before. The US has allowed its companies to growth rampant and then take over the government to mold it to its own interests rather than the interests of the people; Americans call it lobbying but it's clearly decriminalized bribery. China is not desperate like that because China knows that it has 4x the depth of the US and can outgrow the US while maintaining full control of all aspects including making sure that Chinese tech companies fall in line and operate for the good of the people instead of gutting the people for their own wallets. China is a massive garden kept pruned and sculpted at all times while the US is a house overrun by weeds and tunneling roots that has destroyed its supporting structure because it knows nothing but growth... yet it still grows slower than China.

Just remember this for the future: the CCP is the most successful government in the world, which has brought more people out of poverty than multiple US populations combined and it has helmed the fastest economic and technological growth in human history. You're a schizophrenic who constantly sounds like you're in a disingenuous panic making people laugh at you. Note the gap in capability. Whenever you don't understand what that CCP is doing, just nod like a kid with brain trauma at an Einstein lecture. You were lucky enough they let you in so do NOT interrupt him and call him stupid because you think it's wrong for an equation to have both letters and numbers; way smarter people than you are beneath the level of getting it so just nod.