Chinese Economics Thread

[Jiang ZeminFanboy]

China should increase its consumption in order to create a stronger internal market which would then support internal circulation and trade with friendly (BRI) countries

However, it should not reach the US' level of consumption, as that would be too damaging in the long term.

Lower consumption growth than gdp growth means that China consumption share is decreasing, China still hasn't achieved the share level from 2019. Since covid, only 2021 year was positive to reduce the imbalance between consumption growth and gdp growth.

 

[BlackWindMnt]

Cope harder , what the hell is "Putin killed the west" when russia is going to be giant North Korea.

A giant north Korea with access to the biggest world markets. Be still my beating heart.

You do understand, that you want market size access especially a nation like Russia that exports mostly commodities and weapons and not mid to high end consumer goods.

The west now can't go brrrr and buy up shit, they now need to export and earn rubles to buy Russian energy. China which does makes all the mid and high end consumer goods will also need either use rubles or yuan to buy Russian commodities so has less needs for dollars and euros.

Hell before the war Russia and China were going to trade gas in euros. I'm sure that is not a option anymore.

 

[Topazchen]

A giant north Korea with access to the biggest world markets. Be still my beating heart.

You do understand, that you want market size access especially a nation like Russia that exports mostly commodities and weapons and not mid to high end consumer goods.

The west now can't go brrrr and buy up shit, they now need to export and earn rubles to buy Russian energy. China which does makes all the mid and high end consumer goods will also need either use rubles or yuan to buy Russian commodities so has less needs for dollars and euros.

Hell before the war Russia and China were going to trade gas in euros. I'm sure that is not a option anymore.

Most likely, a Westerner .The type that regularly laments how the West made China rich and how it would collapse if they pulled out their investments.People who read CNN and live in an information bubble

 

[visitor123]

Lower consumption growth than gdp growth means that China consumption share is decreasing, China still hasn't achieved the share level from 2019. Since covid, only 2021 year was positive to reduce the imbalance between consumption growth and gdp growth.

what with this obsession with consoomption?
Raising consoomption is extremely easy: just print money. Prove me wrong protip: you cannot because you will resort to inflation. If consoomption is the bottleneck that limits growth as those nu-economists claim, there would have been no inflation.
Riddle me this: Why are you not driving a Bugatti? Why don't you have a yacht or a private jet? Is it because:
a) you don't have enough "demand" or consoomption.
b) you and almost everyone else don't have 2 million dollars laying around to buy bugattis.
c) there are not enough bugattis around for everyone.

If one is not clinically retarded, they would have chosen c) but these nobel prizing winning economists will tell you it's a) and b).
really make you think.

 

[Overbom]

what with this obsession with consumption?

Its actually very simple. Consumption drives production, which in turn drives investment, then R&D, then higher wages, repeat.

Its a self-repeating/strengthening cycle. In order to form internal circulation, domestic consumption needs to be strengthened so that China becomes an even bigger market. This also increases imports which then strengthens the world's dependency over China, this giving it even more international influence to pursue its diplomatic/strategic goals.

The reason why US is so strong is very simple. It has a huge market which is constantly importing goods from other countries. Consequently, this gives it huge power in international affairs.

 

[Nobaru]

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But...at what cost?

 

[Rettam Stacf]

Most likely, a Westerner .The type that regularly laments how the West made China rich and how it would collapse if they pulled out their investments.People who read CNN and live in an information bubble

Global trade and supply chain create interdependency and mutual benefits. The delusional West started to think otherwise. They still have not learned from two most recent events :

• The 2020-21 inflation problem in the US when the West tried to interfere with the supply chain involving China.
• The 2022 US/Europe and soon to be global economic and food shortage crisis due to Western sanctions on Russia.

And they have not seen anything yet until the West tries to decouple from China's economy.

 

[visitor123]

Its actually very simple. Consumption drives production, which in turn drives investment, then R&D, then higher wages, repeat.

so the reason you don't have a bugatti is because you don't want it enough. lndaresting.

Its a self-repeating/strengthening cycle. In order to form internal circulation, domestic consumption needs to be strengthened so that China becomes an even bigger market. This also increases imports which then strengthens the world's dependency over China, this giving it even more international influence to pursue its diplomatic/strategic goals.

that's just a load of crap. Imagine Russia turning from a supplier of gas to Europe to a consumer of gas to Europe they would've been destroyed within a week.

The reason why US is so strong is very simple. It has a huge market which is constantly importing goods from other countries. Consequently, this gives it huge power in international affairs.

are you sure it's not because they have the 2nd largest industrial base in the world (even though a far cry from China) and military bases in all those countries that they have huge influences on? Or that their past industrial capacity gave them a head start in acquiring technologies? It could not be! The US rise of dominance started with American deciding that a healthy BMI be 35 instead of 25. And the reason the people in Congo is starving because they are not consuming enough.
Brilliant.

 

[Overbom]

so the reason you don't have a bugatti is because you don't want it enough. lndaresting.

that's just a load of crap. Imagine Russia turning from a supplier of gas to Europe to a consumer of gas to Europe they would've been destroyed within a week.


are you sure it's not because they have the 2nd largest industrial base in the world (even though a far cry from China) and military bases in all those countries that they have huge influences on? Or that their past industrial capacity gave them a head start in acquiring technologies? It could not be! The US rise of dominance started with American deciding that a healthy BMI be 35 instead of 25. And the reason the people in Congo is starving because they are not consuming enough.
Brilliant.

The State Council disagrees with you

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China will adopt policy measures to boost consumption, as part of efforts to keep economic fundamentals stable and ensure and improve people's lives, according to a decision made at the State Council's Executive Meeting chaired by Premier Li Keqiang on Wednesday.

Consumption is a steady driver of economic growth and bears on ensuring and improving people's livelihood." Li said. "It is vital to take a coordinated approach with both near- and long-term needs in mind, to keep consumption stable for now and unlock potential with holistic measures."

New types of consumption will be promoted. Integration of online and brick-and-mortar consumption will be accelerated, and "smart plus" consumption such as smart products and services will be cultivated and strengthened.

"Financial institutions should enhance support for consumption of big-ticket items. Meanwhile, such consumption should be made more available in rural areas to help improve people's lives," Li said.

 

[KYli]

Inner Mongolia, Xinjiang, Hebei, Gansu and Yunnan and now Tibet would have further enhanced China's wind power capacity.

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