Chinese Economics Thread

HumanHDMI

New Member
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They say living with COVID but do nothing. Then again I can't blame them, the urge to think its all over and everything is back to normal is very powerful. I want to believe it too. I really hope the party is thinking along the terms I wrote.

I am going to cry inside when we inevitably get full hospitals when COVID and a bad flu smack us somewhere down the line, probably will happen within 5 years too.
 

Coalescence

Senior Member
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Dropping Zero covid is going to be a supremely complicated task. I can't emphasize how hard it is going to be. It's most likely a full reopening will only start in 2023. There is a huge list of very complicated things the party will need to do to avoid future mass COVID casualties, just based on my surface level analysis:

1. Stockpile a huge amount of therapeutics, particularly the Pfizer COVID pill. Its a safe bet that there will be runs on stockpiles too considering
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, and the reaction to the now 2 ( as of 5/15/2022) toddler deaths in Taiwan, the party is going to have to distribute these meds equitably while also taking into considering which cities/villages/provinces need a higher supply due to poor medical facilities

2. A massive expansion of the medical system. The hospitalization rate in the US currently sits at 4/10,000 but has gone as high as 33/10,000 at worst. Assuming the average rate in China will be 10/10,000, COVID combined with Flu, and other incidents (car crash etc) would easily overwhelm the majority of hospital's in China especially considering some provinces only have 2 beds per 1000 residents. Living with COVID will require an entire rethink of Hospital capacity planning. COVID being not as seasonal and more severe, will mean every year you could see 2-4 major outbreaks. Roughly guessing, I think China will need as many as 8 hospital beds per 1000 residents with at least 5% being full care ICU's. This would mean a doubling of the medical system basically. A massive influx of medical students will be needed and medical schools will need to expand. A new accelerated medical license aimed directly at care for people with respiratory diseases maybe prudent.

3. Expanded worker protections to include time off due to COVID. As mentioned in the previous point, COVID being not as seasonal and more severe, will mean every year you could see 2-4 major outbreaks. This will mean that workers will need more sick time to prevent further spreading of the disease to the entire workplace and 2. as COVID can cause heart inflammation, and symptoms can hit suddenly without warning, working with COVID raises the chance of sudden death a small but unignorable amount. Forcing people to work while having COVID needs to be punished heavily. This time off should also include an extended recovery period for those suffering long COVID.

4. Massively boosting vaccine production. Every person will need either 1 booster a year or a new 2 dose regimen every 2 years or so based on the COVID mutation pattern so far. This obviously means someone needs to make them. Massive vaccination drives will need to occur regularly and health authorities will need to keep a close eye on any new variants. China will probably also have to cover a significant proportion of the global south as well.

5. Build a comprehensive national cold chain. I doubt China will continue to solely rely on inactivated virus vaccines for much longer especially with multiple MRNA candidates already in the final phases of testing. While able to achieve better protection they are much harder to transport. The Party is somehow going to have to build ultra cold storage that is accessible to every remote village, town and city in the PRC. Even if you hit 10+ million administrated doses a day, its going to take several months to vaccinate everyone and doses only last about 2 weeks to a month at freezer temps.

6. New regulations for workers working with and around animals. Spillback should be a huge concern, infecting animal populations with COVID can lead to deadly potential mutations and new variants that evade vaccines. Workers that have COVID need to be vigorously separated from the animals they work with. There is a reason why Denmark culled its entire mink population of 3.6 million when it detected COVID cases in them, and China needs to do the same for its farmed animals. This means preparing for sudden food supply chain shocks and regularly testing animal populations nationally.

There are like 4 others I can think of but I am lazy and don't want to type. Either way just opening up with zero preparation is very very very negligent. And each one of the tasks I wrote are like more than most governments do in a year. There is no possibility of returning to the pre-pandemic version of things unless somehow every country adopts a China level zero-covid policy for 1-3 months. This is going to fundamentally change how we live and everyone should know that.
Well articulated post! I've been trying to argue these preparations are needed as well. Although they can explore the possibility of keeping Zero-Covid for less prepared and underdeveloped areas, and focus on speeding up the preparations for more economically important areas, like those near the coast to "live with Covid". I'm still holding on to my hope that we'll find a way to reduce the transmissibility and severity of Covid to be that of the common cold through discovery of sterilizing vaccines, effective treatment and medicines, and possibly new technologies like nasal vaccine and UVC air disinfectant. Maybe one day we'll be free from tyranny of this damnable virus and be able do live the life before the pandemic.
 

Strangelove

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Egypt may soon sell bonds that are priced in China’s currency the yuan.

Minister of Finance Mohamed Maait made the announcement yesterday alongside the People’s Republic’s Ambassador in Cairo Liao Liqiang. The move would help diversify Egypt’s financial resources and target China’s large bond market, the state-owned
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reported.

Bonds are a type of financial security that represent the holder’s obligation to repay the buyer. Governments issue bonds to help finance their expenses.

Why it matters: Egypt has pursued several new bond strategies recently. The country is currently preparing to sell Islamic bonds. An Islamic bond, or sukuk, complies with Islamic law’s prohibition on usury. In February, Egypt
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to manage the future sukuk sale. Last year, Egypt
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in Japan’s currency the yen.

The move could threaten the position of the US dollar as the world’s dominant currency. Many countries around the region
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in dollars or their own currency. Doing business in yuan is becoming more appealing to some countries. Saudi Arabia is reportedly considering
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as payment for oil sales to China.

Know more: Egypt recently secured
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from its Gulf allies to mitigate the
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from the war in Ukraine. The war has
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on Egypt’s wheat supply, for example.
 

AndrewS

Brigadier
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China Is Likely First Country to Reach 96% Urban Home Ownership, PBOC Says
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The Chinese people (as an ethnic group) culture of home ownership also help them to waterdown tough times without the fear of losing the roof over their heads.

I'd also say that this has long term societal benefits.

It helps develop a culture of saving and delayed gratification.

Plus home ownership has one of the largest long-term financial returns of any spending, as long as you have a healthy property market. On a 10-year basis, you're typically looking at a 4x return on initial money upfront due lower monthly payments and modest property price increases over the years in the UK for example
 

TK3600

Major
Registered Member
Jordan Peterson is an absolute retard. I matched with him on Chess.com in late 2020, and his Chess.com account was full of braggado about how awesome and popular his books were.

I defeated him anyway. He's slightly above average in chess. Rating about 1700.

Next time, I'll invite him to play Chinese chess with me.
Wait what.
 

Overbom

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It’s time to do whatever we can to save the economy,” Huang Yiping, a Peking University professor and a former central bank adviser, said at Tsinghua PBCSF Chief Economists Forum in Beijing on Saturday.
Cash flow problems have shown up for many enterprises and households. More direct support is needed for affected companies and people.”
Those problems were reflected in car sales and bank loan data released last week.
Car sales fell 47.6 per cent to 1.18 million units in April, according to the China Association of Automobile Manufacturers.
And April financial data from the People’s Bank of China showed that both the household and corporate sectors were downsizing their borrowings.
Aggregated financing, a measurement of funding support for the real economy, was 51 per cent lower than a year ago at 910.2 billion yuan (US$134 billion), while new yuan-denominated loans also fell by more than half to 645.4 billion yuan.
State media also reported that many cities reported a big fall in fiscal revenue last month, as tax rebates took effect and economic activity cooled.
The uncertainty faced by corporations and households are even greater than the first quarter of 2020 [when the coronavirus pandemic broke out],” Nomura chief China economist Lu Ting told the forum.
As the pandemic enters its third year, many households and corporations have run out of savings and their ability to resist shocks is waning. Rising unemployment is also pushing down household spending.
Sheng Songcheng, former head of the central bank’s statistics department, said second-quarter GDP growth might slow to 2.1 per cent from the first quarter’s 4.8 per cent.
 

Overbom

Brigadier
Registered Member
In a few hours, important economic data are going to be released. I estimate the "Retail Sales(Apr)" figures is going be a big decrease. Industrial production should be neutral or very low growth

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View attachment 88845
The data are out and they are even worse than I thought they would be. It seems that even my pessimistic estimates were quite optimistic

IMG_20220516_105414.jpg
 

InfamousMeow

Junior Member
Registered Member
The data are out and they are even worse than I thought they would be. It seems that even my pessimistic estimates were quite optimistic

View attachment 88863

Wow! It's better than I thought! Maybe I was expecting too little. Other than the long period of lockdown in Shanghai, a lot of other places were in lock down too, either from spill over cases from Shanghai or struggles of their own. Maybe it's because my general area has been impacted more by this wave of Omicron.

My city, since lifting lock down from this wave quite a while ago, has been implementing 48 hour nucleic acid test requirement for basically everything. So far, it's working fine. There were multiple times when we detected cases, back from other cities, and instantly had a city-wide nucleic acid test and some localized lock downs. So far, we managed to avoid city-wide lock-down despite multiple challenges from Omicron.

I still remember the good-ol days of second half of 2020 and first half of 2021, many people were confident enough to not wear masks on the streets and indoors, not anymore:(. It seems like the real fight is on now. No matter how difficult it is, challenges are to be conquered. Such is life. :)
 
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