Chinese Economics Thread

Strangelove

Colonel
Registered Member
Does anybody know if The Paulson Institute is a reliable source? They have a really bullish view on China’s HSR, which a lot of western media nearly unanimously treat like a white elephant. Here’s the link for anyone interested:

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Founded by Hank Paulson, Secretary of the Treasury during the 2008 financial crisis, during which time he made heaps of phone calls to Hu and Wen begging for help.

He does have some China experience and is one of the saner characters in DC & NY. The Paulson Institute is probably pro-business but don't know how influential it is... especially among the swamp.

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broadsword

Brigadier
Not really about Google.
I meant to share that adding "meaning" will usually show useful results for commonly used acronyms.
Btw, it is good to know how best to google for meaningful results.
At 68 years old, and using a PC since 1986, I am open to suggestions on how to search better.
Anybody using Duckduckgo or Baidu ?
.

Look for an addon that attaches a search engine to the context menu. 'Contextmenu Search' is one example. Attach or create the search engines of your choice. In my case, I attach thirty engines such as Google Search, Google Image, Petal, Youtube, Google Translate, Word Hippo, Onelook, Acronyms, Google Scholar, Aliexpress, supermarkets, etc.
 

Jiang ZeminFanboy

Senior Member
Registered Member
Founded by Hank Paulson, Secretary of the Treasury during the 2008 financial crisis, during which time he made heaps of phone calls to Hu and Wen begging for help.

He does have some China experience and is one of the saner characters in DC & NY. The Paulson Institute is probably pro-business but don't know how influential it is... especially among the swamp.

View attachment 92616
Yes, I've been reading their articles for a quite long time. Their predictions or analysis when you look at them now, were very often correct.
 

mossen

Junior Member
Registered Member
The think-tank that put out that HSR report is called Marco Polo and it's run by Damien Ma, who by his surname you can easily guess to be ethnically Chinese (which he is). Of course, just being Chinese isn't a guarantee for sanity in the West but it improves the odds.

Besides, the West needs to create reports for its own elite that isn't bullshitting too much. Propaganda is for the plebs but the elites need to know the real score. Paulson has that job among a few others.
 

AndrewS

Brigadier
Registered Member
The think-tank that put out that HSR report is called Marco Polo and it's run by Damien Ma, who by his surname you can easily guess to be ethnically Chinese (which he is). Of course, just being Chinese isn't a guarantee for sanity in the West but it improves the odds.

Besides, the West needs to create reports for its own elite that isn't bullshitting too much. Propaganda is for the plebs but the elites need to know the real score. Paulson has that job among a few others.

It's Macro Polo
 

Strangelove

Colonel
Registered Member
Places like Vietnam can have segments of low-margin downstream manufacturing, we're focusing on other priorities...

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Pearl River Delta transforms from world factory to technology hub​


Xinhua | Updated: 2022-07-10 08:22
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Photo taken on April 1, 2021 shows a workshop of a microwave oven factory of Midea Group, a Chinese home appliance giant, in Foshan city, South China's Guangdong province. [Photo/Xinhua]

GUANGZHOU - The Pearl River Delta in South China's Guangdong province has over the past decade gradually transformed from a base of traditional manufacturing industries -- with low technical content and added value -- into an international highland for science and technology.

A host of traditional manufacturing enterprises in the Pearl River Delta have embraced a digital transformation over the past 10 years. Guangdong Province has also made efforts to strengthen weak areas in basic scientific research and accelerate its cultivation of strategic emerging industries.

DIGITAL TRANSFORMATION

In a production workshop at Midea Group, a Chinese home appliance giant based in Foshan City of Guangdong, lines of industrial robots perform operations while two uniformed technicians monitor parameters on a digital screen.

Midea Group, which owns four "lighthouse factories," has transformed from a traditional home appliance manufacturing company into a benchmark company for digital production in the Pearl River Delta.

Midea started its digital transformation in 2011. "By the end of 2021, our revenue had increased by 156 percent and net profit had increased by 333 percent," said Zhang Xiaoyi, vice president of the company.

Dubbed the city of home appliances in China, Shunde District of Foshan City has promoted more than 33 percent of major industrial enterprises to realize digital transformation and intelligent production in recent years.

More than 80 percent of the major enterprises in Foshan are expected to achieve digital transformation by the year 2026, said Zheng Ke, secretary of the Foshan Municipal Committee of the Communist Party of China.

In addition to Midea, more small and medium-sized enterprises (SMEs) in the area are striving to achieve digital transformation.

Foshan has established a manufacturing transformation and development fund to promote the digital transformation of SMEs.

Guangdong KEDA Hydraulic Technology Co., Ltd. in Foshan has been exploring digital transformation since 2005. Up to now, the company has achieved full 5G coverage in its production workshops. General Manager Yang Xuexian said the company has saved 40 percent of its energy consumption through digital transformation, and its per capita output value has increased by more than 60 percent.

Shiling Township in Guangzhou, capital of Guangdong Province, is known as China's leather capital. About 8,800 bag and suitcase companies there manufacture more than 700 million bags and other leather products every year. Facing the adverse influence of COVID-19, many enterprises are seeking the help of digitalized machines.

Longzhuo Leather Co., Ltd. chose to introduce robots to help improve efficiency. Huang Haifeng, general manager of the company, said that production efficiency has increased by 10 percent in just half a year. "The investment in digital transformation is 800,000 yuan, and it helps save 800,000 yuan a year. So why not try digital transformation?" Huang added.

Guangdong has promoted the digital transformation of about 22,500 major industrial enterprises. The province aims to realize digital transformation for an accumulative number of 50,000 enterprises by 2025, according to the Guangdong Provincial Department of Industry and Information Technology. STRENGTHEN WEAK LINKS

Insufficient research in basic science has long been a constraint on Guangdong's development. Taking advantage of leading economic strengths in the country, Guangdong has been devoted to building scientific apparatus and attracting national-level research institutes in recent years.

Construction of the China Spallation Neutron Source, China's first pulsed neutron source facility, started a decade ago in Dongguan City. Chen Hesheng, an academician of the Chinese Academy of Sciences, served as chief commander and project manager of the engineering headquarters at the age of 65.

As an advanced experimental platform for multi-disciplinary research, the facility is able to boost high-tech development in many application fields such as material sciences, life sciences, resource environments and new energy.

"The successful construction of the spallation neutron source in Dongguan shows the determination and achievements of Guangdong Province to promote scientific and technological innovation," Chen said.

A batch of major scientific and technological infrastructure has taken a leap forward in the Pearl River Delta, including the national supercomputer centers in Guangzhou and Shenzhen, the underground neutrino observatory in Jiangmen, and the high-intensity heavy-ion accelerator facility in Huizhou.

The expenditure on basic research in Guangdong has doubled in the past five years. More than one-third of provincial financial funds for science and technology during the 14th Five-Year Plan period (2021-2025) will be invested in basic research, according to Wu Shiwen, deputy director of the provincial department of science and technology.

The Guangdong-Hong Kong-Macao Greater Bay Area has developed complete industrial chains. An open and inclusive innovation atmosphere has been formed in the region, attracting talent, capital and other resources from all over the world, said Lionel M. Ni, president of the Hong Kong University of Science and Technology (Guangzhou), which is scheduled to open in September.

NEW DEVELOPMENT DRIVERS
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Aerial photo shows the China Spallation Neutron Source in Dongguan city, South China's Guangdong province, on July 24, 2019. [Photo/Xinhua]

In Nansha District of Guangzhou, passengers are able to find the whereabouts of 500 stops for self-driving taxis using the mobile application PonyPilot+. Chinese autonomous vehicle company Pony.ai has introduced the robotaxi services in the district's core area covering 300 square kilometers.

"With the continuous growth of research and development as well as the application of autonomous driving in China in recent years, China is no longer a follower, but a global leader in terms of policy openness, technological development and user acceptance in this field," said Mo Luyi, vice president of Pony.ai.

Pony.ai is just one of the enterprises in the Pearl River Delta area that play a leading role in various sectors. In the past decade, Huawei has risen rapidly in the fields of network communication and intelligent terminals, BYD in electric vehicles, DJI in civil drones, Tencent in the mobile internet, and BGI in life sciences. All of these rises have taken a place in the global technology industry.

Statistics from the Department of Science and Technology of Guangdong Province show that the total number of high-tech enterprises in Guangdong exceeded 60,000 in 2021, ranking first in China for six consecutive years. Science and technology enterprises have become an important force in Guangdong's efforts to create a new development pattern.

A number of leading science and technology enterprises that are internationally competitive have emerged, and a number of hard and core technology enterprises in emerging industries have been cultivated in Guangdong, and they have become the backbone of the province's high-quality economic development, said Gong Guoping, director of the provincial department of science and technology.
 

canonicalsadhu

Junior Member
Registered Member
Interesting article about SOEs
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SOEs are mainly engaged in public utilities, where profit shouldn't be the highest priority. Moreover, SOEs play a stabilizing role in the economy: they increase investment in economic downturns to keep the economy afloat and maintain employment while decreasing investment when private investment is high to avoid over-heating the economy.
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mossen

Junior Member
Registered Member
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China will reach 100% debt to GDP this decade if the trend continues. When Chinese nominal per capita income will only be 1/3th of the US. Meanwhile South Korea's debt to GDP is 52% and Taiwan's is only 26%, so high debt isn't necessary for development. I see remarkably little discussion about this.

Meanwhile, Chinese deficit is over 14% of GDP according to Lou Jiwei, former finance minister of China.


Nominal GDP growth will likely be no more than 7% this year. Hence the rapidly rising debt.
 

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getready

Senior Member
The think-tank that put out that HSR report is called Marco Polo and it's run by Damien Ma, who by his surname you can easily guess to be ethnically Chinese (which he is). Of course, just being Chinese isn't a guarantee for sanity in the West but it improves the odds.

Besides, the West needs to create reports for its own elite that isn't bullshitting too much. Propaganda is for the plebs but the elites need to know the real score. Paulson has that job among a few others.
Agree. Even Within western media , one can differentiate various sources. BS propaganda like VoA or CNN, and sources like WSJ or Forbes that cater to more business audience . Occasionally they have to tell the truth on China or risk losing their audience if they kept feeding them BS. WSJ opinion section is still very shit though.
 
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