Chinese Economics Thread

[getready]

China initially thought Europe would be an important third pole and thus sought to slowly pry it away from US influence using the CAI as a bribe

Yes. China definitely wanted to pry Europe away from US influence and persuade them to be act more independent as a group. Xi said this himself in a statement to European leaders in a video conference.

Prof Jin Canrong also mentioned it in his speech that no one would be happier than china if Europe became more independent and stopped being America's baby. Who knew European leaders are so cucked.

 

[ansy1968]

Yes. China definitely wanted to pry Europe away from US influence and persuade them to be act more independent as a group. Xi said this himself in a statement to European leaders in a video conference.

Prof Jin Canrong also mentioned it in his speech that no one would be happier than china if Europe became more independent and stopped being America's baby. Who knew European leaders are so cucked.

Being a Green minded (Philippine slang for Having a dirty mind; having a tendency to look for or find sexual connotations in things.) is bad for one's health...lol

 

[ht1688]

What benefit was the CPC trying to get here to be willing to give a lot of compromises to EU? I'm honestly worried if the EU saw this as a sign of weakness displayed by China.

Opening up allows for competition that can make you stronger. It also encourages FDI, provides jobs, and helps increase workforce competency. You don't want to do it willy nilly. You do it when you're ready.

Letting Tesla build the factory in Shanghai, for example, makes Chinese EV makers more competitive in the world market (besides gaining potential geopolitical benefits). They are forced to compete with Tesla based on merit since Tesla got plenty of subsidies from the Chinese government also. This makes them stronger. Also, of course, they can potentially hire away Tesla trained employees while Tesla know-how disseminates across Chinese EV industry.

 

[56860]

Opening up allows for competition that can make you stronger. It also encourages FDI, provides jobs, and helps increase workforce competency. You don't want to do it willy nilly. You do it when you're ready.

Letting Tesla build the factory in Shanghai, for example, makes Chinese EV makers more competitive in the world market (besides gaining potential geopolitical benefits). They are forced to compete with Tesla based on merit since Tesla got plenty of subsidies from the Chinese government also. This makes them stronger. Also, of course, they can potentially hire away Tesla trained employees while Tesla know-how disseminates across Chinese EV industry.

Easier said than done. You must very carefully direct that flow of FDI to benefit your country - else it just becomes another form of colonialism, where the rich multinational comes in, takes advantage of cheap labor, puts all domestic competition out of business, and ships the profits back home.

 

[ansy1968]

Easier said than done. You must very carefully direct that flow of FDI to benefit your country - else it just becomes another form of colonialism, where the rich multinational comes in, takes advantage of cheap labor, puts all domestic competition out of business, and ships the profits back home.

Bro it cut both ways, without competition you stagnated, same with having monopolies and you have a Home Court advantage knowing the culture and the local preference. In China case having FDI means a transfer of technology, gaining western know how and it impossible for foreigner to take those physical factory home...lol The profit being ship are FIAT money BUT the tangible production and products are being done inside China.

 

[56860]

Bro it cut both ways, without competition you stagnated, same with having monopolies and you have a Home Court advantage knowing the culture and the local preference. In China case having FDI means a transfer of technology, gaining western know how and it impossible for foreigner to take those physical factory home...lol The profit being ship are FIAT money BUT the tangible production are being done in China.

China did FDI right. It forced technology transfers, and in many cases, joint-ventures with chinese companies to get its domestic industry going.

 

[ansy1968]

China did FDI right. It forced technology transfers, and in many cases, joint-ventures with chinese companies to get its domestic industry going.

Correct Brother, in our case the oligarch are the one who benefitted because our constitution forbade full foreign ownership, meaning foreign enterprise need a local partner with 40/60 split. So who will they partner with to make their venture a success, the oligarch. That's the reason why the rich get richer and the middle class is shrinking. With wealth you gain power and they funded the career of some prominent politician to help legislate and protect their business.

 

[siegecrossbow]

Bro remember the The Comprehensive Agreement on Investment or CAI, well EU hadn't approved it yet due to the US insistence so for China it's a godsent, meaning the Chinese hadn't boarded the sinking ship...lol Now without these bilateral agreement, China can pick and choose what the Europeans can bring and the Chinese investment will go elsewhere within the BRI or in Russia.

The agreements were a concession to Europe and by extension European companies. I guess at the time they already had too much to eat to realize how good of a deal it was. I think after a few lean decades they’ll come to regret it, but by then they will not get such favorable trade terms.

 

[ansy1968]

The agreements were a concession to Europe and by extension European companies. I guess at the time they already had too much to eat to realize how good of a deal it was. I think after a few lean decades they’ll come to regret it, but by then they will not get such favorable trade terms.

Sir from your post from the other thread, they heard you loud and clear as BASF had just open its largest green and most modern plant in ASIA. Besides with anemic growth in the US and EU with cheaper production input, it's an oxymoron not to be in China as the Chinese are the driver of Global growth and trade.

 

[Strangelove]

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China surpasses US in corporate debt sales as the world's 2 largest economies see starkly different central bank policies​

Sep 8, 2022, 11:26 PM

Dollar vs. Yuan

• US dollar corporate debt sales are hitting their lowest levels in 11 years, according to Bloomberg data.
• Chinese yuan-denominated bond sales have now exceeded those of the dollar.
• Divergent central bank policies of the US and China are fueling the change.

As the Federal Reserve and the People's Bank of China diverge in monetary policy strategies, China's corporate bond deals have overtaken those in the US in recent months, according to

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.

Yuan-denominated debt issuance by non-financial firms totaled 2.04 trillion yuan sales (about $306 billion, based on currency exchange rates at the time) between April and August. In the same stretch, sales of dollar-denominated corporate debt totaled $283 billion.

Beijing's monetary policy has allowed many firms to sell bonds at some of the cheapest prices in over a decade. The People's Bank of China has slashed key interest rates in a bid to bolster a faltering, COVID-19 lockdown-ridden economy.

Meanwhile, the Fed is hiking rate aggressively to tame inflation, and dollar debt sales have plunged 40% to $592 billion so far this year, their lowest levels in 11 years, per Bloomberg. The issuance of yuan notes has slipped about 6% in 2022.