Chinese Economics Thread

Coalescence

Coalescence

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Tam said:
There is strong pressure for the Yuan to go upward, thanks to the Russian-Ukrainian war, and the inflation you are seeing in the West. To weaken the Yuan, you will have to print money, which increases domestic inflation, or you have to weaken inflation rates, which comes badly at a time when China is trying to make the economy learn how to tighten its belt and correct the excesses of its earlier boom years. Europe, as a declining manufacturing power on its own, is not helping.
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Could China fix this by buying commodities and metals overseas with the newly printed yuan, increasing their emergency reserves and promoting the internationalization of Yuan in the same time?
 
Coalescence

Coalescence

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9dashline said:
This is crazy, this is almost as often as I talk about EROEI.
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Tbf, EROEI is a very important concept to grasp in our current times where all the easy to extract fossil fuel has been all exhausted and high-grade metals/minerals being harder to find. The current and future leaders must take it to account when planning for long-term material acquisition and sustainability.
 
FriedRiceNSpice

FriedRiceNSpice

Captain
dfrtyhgj said:
It is what it is, top talents seek top pays. China got to pay better (or drop the dollar peg).
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China does offer competitive pay for top talent, tech firms in Beijing/Shenzhen offer up to 2M RMB for top engineers. And for top talent, pay is usually not the most important motivating factor. Salaries are market driven and based on supply and demand - with a much larger pool of talented engineers, China does not need to pay as much for rank-and-file engineers. Why would Chinese tech firms need to pay like FANG when they already have access to better talent than FANG?
 
FriedRiceNSpice

FriedRiceNSpice

Captain
dfrtyhgj said:
That's only USD$300k, check
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top talent starts 700k+
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See someone who is actually top talent would understand 300k in Shenzhen Beijing beats 700k in Bay area any day. In Bay Area, 200k is equivalent to living paycheck by paycheck. Have you ever been to the Bay Area?

And the 2M RMB is offered to postgraduates with no actual work experience, whereas at FANG the absolute best offers to postgraduates from top schools would be in the low-mid 400ks range.

700k represents the absolute top of what is achievable at FANG, and is only offered to engineers with at least a decade of proven track record at FANG or FANG equivalent companies.

Also, would you want China to be like the US and draw all the top talent into software!?!?! There are so many other fields in China that should be prioritized above software in terms of drawing top talent, and it would be extremely unlikely that those fields could afford to pay the same level of salaries for engineering talent.
 
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H

HereToSeePics

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Coalescence said:
Could China fix this by buying commodities and metals overseas with the newly printed yuan, increasing their emergency reserves and promoting the internationalization of Yuan in the same time?
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Not as simple as this. Only China's central bank can "print yuan". Also, The Peoples Bank of China has no direct ability to buy commodities and metals since they are in the business of managing China's monetary policy and currency assets, and not take delivery, transport, store and distribute a 100000 ton shipment of iron ore for example.
 
Coalescence

Coalescence

Senior Member
Registered Member
HereToSeePics said:
Not as simple as this. Only China's central bank can "print yuan". Also, The Peoples Bank of China has no direct ability to buy commodities and metals since they are in the business of managing China's monetary policy and currency assets, and not take delivery, transport, store and distribute a 100000 ton shipment of iron ore for example.
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I see, so could the central bank coordinate with some refinery and logistics business, offering them cheap loans to take on the challenge? I wonder which government organization is the one responsible for reserving grains for emergency use.
 
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