Chinese Economics Thread

[dfrtyhgj]

Disclosed investment in China’s chip sector stood at more than CNY387.6 billion (USD60.91 billion) last year, up over three times from the previous year

In the first quarter of this year, China's chip sector has seen 310 financing deals, 4.6 times more than last year

Lenovo Group set up Dingdao Zhixin Shanghai Semiconductor with registered capital of CNY300 million (USD47.14 million) on Jan. 26

in 2022 the chip industry will see the largest average salary increase at more than 50 percent

Please, Log in or Register to view URLs content!

 

[horse]

https://twitter.com/i/web/status/1509783979339431938

Maybe we should look at it the other way too?

Suppose the world is decoupling, such as in IC manufacturing.

Clearly one base will be centered around America, and one base eventually be centered around China.

If a multinational corporation had to choose, it is obvious which side it will choose.

All multinational corporations will choose both sides. They will set up one headquarters of operations around the American block, and they will set up another headquarters of operation around the China block.

Could this be with the FDI flooding into China, that the multinational is already doing this?

Could be, we just don't know.

However, for the multinational putting their money down on China is a safe bet.

They all almost all make money from the China market today, and if they invest now and the supply chains decouple even more, then they are in a good position for the future too.

The Western media and politicians do not understand this point. Decoupling is actually good for China. From a geopolitical perspective it is. There could be short term dislocation, but that is a negligible price to pay for what seems like a mammoth windfall in the long run.

If decoupling was bad for China, then logically, Xi Jinping's plan of China 2025 is bad too.

 

[horse]

" Full access" in the title may be misleading, depending on what's the scope and interpretation of these words are. It doesn't fundamentally change anything in essence from China's point of view.

That is the thing.

I have kept my mouth shut, because I suspect there is a larger play here. Although I cannot prove it.

Start from the simple point, that if someone from aboard, who is rich and arrives in London and wants to by a place to live, they must use Pound Sterling to purchase that property.

If someone wants to buy China stocks on a Chinese exchange, they need RMB. If someone wants to buy American assets, they must pay in USD.

That is the thing, eh? Since that war started, the Americans are taking people's money. They are repossessing their US Dollars! LOL!

Naturally, rich people take a step back, and pause for a moment, and exclaim, "What are we going to do now, where are we going to invest? Maybe not a great idea to invest only in American assets, as President Trump was self-proclaimed tariff-man, who could easily change into repossession-man!"

Then all of the sudden, out of the blue, the Chinese communist are eager to make this concession on auditing, to have more transparency for Chinese companies listed on US stock exchanges. Since that is in English, hey, no need to read Chinese! Go read or research about this Chinese company in America, then go invest into it in China.

Of course, we cannot prove any of this.

It just makes too much sense, that to survive and to gain, we roll with the punches and punch back.

If we hit them with a low blow, just hope the ref did not notice.

 

[Red Moon]

That is the thing.

I have kept my mouth shut, because I suspect there is a larger play here. Although I cannot prove it.

Start from the simple point, that if someone from aboard, who is rich and arrives in London and wants to by a place to live, they must use Pound Sterling to purchase that property.

If someone wants to buy China stocks on a Chinese exchange, they need RMB. If someone wants to buy American assets, they must pay in USD.

That is the thing, eh? Since that war started, the Americans are taking people's money. They are repossessing their US Dollars! LOL!

Naturally, rich people take a step back, and pause for a moment, and exclaim, "What are we going to do now, where are we going to invest? Maybe not a great idea to invest only in American assets, as President Trump was self-proclaimed tariff-man, who could easily change into repossession-man!"

Then all of the sudden, out of the blue, the Chinese communist are eager to make this concession on auditing, to have more transparency for Chinese companies listed on US stock exchanges. Since that is in English, hey, no need to read Chinese! Go read or research about this Chinese company in America, then go invest into it in China.

Of course, we cannot prove any of this.

It just makes too much sense, that to survive and to gain, we roll with the punches and punch back.

If we hit them with a low blow, just hope the ref did not notice.

When someone is thinking of freezing your assets, it's good to be able to freeze some of theirs too. 2.75 trillion worth of Yuan denominated bonds in foreign hands can play the role of collateral in this case. So can all the stocks of Chinese companies owned through the NY stock exchange, which must add up to a hefty sum, and you probably want to increase it, not decrease it.

 

[KYli]

Please, Log in or Register to view URLs content!

Please, Log in or Register to view URLs content!

 

[Tyler]

It seems that countries with friendly political and economic ties to China, the good relations is more or less limited to the political level.
Simple example is street interviews of everyday Russians who say they recognize China as an important business partner but it's limited to that, namely not a cultural partner. Some even say they think Russia is selling out the country to China, a view that's more common in African countries that are unhappy about jobs during infra projects going to temporary Chinese workers.

This is perhaps the issue of soft power. The average Russian is more likely to have a view that they're Europeans who only deal with Chinese as customers or suppliers.

It's also probably the biggest disparity with the US, which is great at it. Much of this is just the way it is; white people will always look toward other whites and most of the smaller white countries speak English near-natively. Due to past colonialism, most places are culturally closer to the Anglosphere. English will be the 2nd language and along with it music and movie consumption. China's efforts with the Confucian institutes seem to have only garnered negative publicity.

One thing I remember being surprised by was Argentinians protesting the '08 Olympic torch run due to US propaganda about Tibet. A few years later, my random English-speaking tour guide in Brazil, perfectly friendly and normal in person, posts concerns about Xinjiang on social media. I had no idea South Americans held such views but if English is their 2nd language, exposure to such news is inevitable.

Do you think soft power is a lost cause generally?

What would be practical soft power goals for China?

China should promote it culture more, for example pop music, movies and video games. Right now k-pop very popular, and should be contained.

 

[Century2030]

Please, Log in or Register to view URLs content!

Chinese brands are capable of making quality products. It's just their brand image and marketing isn't as good as foreign brands.
Must improve marketing in order to build a sizeable customer base in the long term.

 

[Overbom]

https://twitter.com/i/web/status/1511881776456773635

 

[AndrewS]

Maybe we should look at it the other way too?

Suppose the world is decoupling, such as in IC manufacturing.

Clearly one base will be centered around America, and one base eventually be centered around China.

If a multinational corporation had to choose, it is obvious which side it will choose.

All multinational corporations will choose both sides. They will set up one headquarters of operations around the American block, and they will set up another headquarters of operation around the China block.

Could this be with the FDI flooding into China, that the multinational is already doing this?

Could be, we just don't know.

However, for the multinational putting their money down on China is a safe bet.

They all almost all make money from the China market today, and if they invest now and the supply chains decouple even more, then they are in a good position for the future too.

The Western media and politicians do not understand this point. Decoupling is actually good for China. From a geopolitical perspective it is. There could be short term dislocation, but that is a negligible price to pay for what seems like a mammoth windfall in the long run.

If decoupling was bad for China, then logically, Xi Jinping's plan of China 2025 is bad too.

Semiconductor fabs aren't really located in the USA anymore.

Plus it costs a lot more to setup a US fab than one in Korea, Taiwan or China.

 

[Topazchen]

China should promote it culture more, for example pop music, movies and video games. Right now k-pop very popular, and should be contained.

That will never happen as long as games,movie and TV scripts are sent to 60 year old bureacrats in Beijing for approval.