China will have busy years ahead in order to upgrade old factories to modern one comparable to western counterpart.
Chinese Economics Thread
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Yuan has kept at a very low level: barely above 2%. USD and EUR combined have a market share of over 75% of all global settlements. You include Western-aligned countries like UK, Japan and the number goes well above 80%.
As I've pointed out many times: China can massively increase international use of Yuan if it wanted to tomorrow, but that would have to be followed with an open capital account which the CCP does not want to do (because that means you love the ability to control the FX value of your currency).
The CCP does not want to do that, for wise reasons IMHO, but it also means this hype about an imminent end to Western financial domination is nothing but bullshit. One-off stories about Russia selling oil in yuan doesn't change this. The data is very clear, as even the Chinese media admits.
The real heroes
Massive import surplus with China
The same report found that several strict coronavirus-related lockdowns across China in 2022 had not affected trade with Germany much at all, despite the disruptions in freight traffic. For April 2022, German imports from China increased by 52.8% to €16.7 billion compared with the same month the previous year.
Despite this, German exports to China dipped a bit, down 1.5% to 8.3 billion euros. Destatis reported that while exports of motor vehicles and their parts rose somewhat, exports of machinery dropped significantly.
Regarding the sharp increase in Chinese imports into Germany, this was largely due to the import of chemical products worth €4.4 billion, a six-fold increase on the previous year. Surging demand for raw materials used in pharmaceutical production, data processing equipment, and other electrical equipment also drove the rise in imports.
"As a result of these developments, Germany recorded an import surplus [imports minus exports] of €8.4 billion in foreign trade with China in April 2022," Destatis found.
"Import surplus" sounds better than "trade deficit"? It certainly gave me a pause.
I bought two rtx3090ti card and took on a credit card surplus of $3500
At this point they are basically bragging about the fact that they can get away with getting something for nothing....I would be bragging too if I never intended on paying my card balance again
What does China get in return? Its not like China needs any more BMW cars, or Gucci bags, or airbus planes... and the only thing China still currently needs they refuse to sell... and the Euro is basically already dead as a foregone conclusion with USD going to zero within one to two years....
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As long as resource exporters take euro, China can continue the trade with EU in export deficit. BMW cars and Gucci bags do balance supply and demand within China until Chinese brands can displace them.
Inspection robot made by FANUC.
Until we see Estun or hell, even KUKA robots all over the place; higher value added manufacturing (and high income jobs) remains a work in progress.
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Import foreign goods and service is not necessarily a bad thing，money has no intrinsic value per se unless you convert it to goods and service
There is no significant technical and resource hurdle that China cannot come up with a 6-axis articulated robot arm like the FANUC M-20iD/25 within a year. Besides, chances of embargo of this type of robots by Japan is fairly low for economics and low technology entry barrier (for China) reasons.
China, in spite of her economic and industrial prowess, cannot replicate every single high tech imports. She should rightly put her resources in the other high priority and critical ones.
No shame in using foreign imports for her higher value added manufacturing. Besides, we don't know if the FANUS robot in the video was purchased years ago and there are already domestic equivalents.