Chinese Economics Thread

G

gelgoog

Lieutenant General
Registered Member
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""Taking into account the already accumulated experience of cooperation on the trilateral track, we propose to focus our efforts on the consistent implementation of the program for the development of the Russian-Chinese-Mongolian economic corridor, which is developing successfully. We agreed to extend it for another five-year period," the Russian leader said.
...
Among the most important joint projects, the president mentioned the upgrade of the Ulaanbaatar railway, which is an important artery for container traffic between Russia, China and Mongolia.
"We believe it is necessary to continue work to expand the capacity of this transport corridor, upgrade tracks, rolling stock," he said. In particular, it is planned to reconstruct the Naushki checkpoint on the Russian-Mongolian border, increasing its throughput."
 
K

KYli

Brigadier
gadgetcool5 said:
Why does China restrict price cuts to begin with? Isn't the whole point to bring down the price of housing?
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Many Chinese cities put a price ceiling and a price floor for new apartments. Price ceiling is to prevent a rapid increase of housing prices. As for a price floor, it is to prevent race to the bottom. You need to understand it is the central government that demands them to stabilize the housing prices and prevent housing from overheating. Many cities rely upon land sales for tax revenue and they don't want a collapse in housing. A slow decline or stable housing price is most preferred by them. Of course, if those cities have a choice, they would prefer housing prices to increase yearly.

In addition, Chinese apartments usually are built by blocks. So whenever property developers sell block 2 less than block 1 by a large percentage, apartment block 1 buyers would demand compensations. A decrease in apartments by the developers would cost social problems even though the demands of compensation is unreasonable.
 
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H

henrik

Senior Member
Registered Member
KYli said:
Many Chinese cities put a price ceiling and a price floor for new apartments. Price ceiling is to prevent a rapid increase of housing prices. As for a price floor, it is to prevent race to the bottom. You need to understand it is the central government that demands them to stabilize the housing prices and prevent housing from overheating. Many cities rely upon land sales for tax revenue and they don't want a collapse in housing. A slow decline or stable housing price is most preferred by them. Of course, if those cities have a choice, they would prefer housing prices to increase yearly.

In addition, Chinese apartments usually are built by blocks. So whenever property developers sell block 2 less than block 1 by a large percentage, apartment block 1 buyers would demand compensations. A decrease in apartments by the developers would cost social problems even though the demands of compensation is unreasonable.
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They should have allowed market forces to determine the prices, so that they would not get into this current situation.
There should be a clause in the purchase contract stating that there will not be compensation if there are price reductions.

Recently, some xpeng EV buyers are complaining that a new model is being sold at lower prices than the older model, thereby affecting used car prices. These people need to be re-educated so that they don't haggle for lower prices like at a public market.
 
A

Anlsvrthng

Captain
Registered Member
xypher said:
Great news from the real estate front. Hope the housing will become more affordable.
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It decrease the ammount of available investment in Chinese market, means they need bigger trade surpluss to compensate it.

If they can't invest at home, then the only place that left is abroad, and the main option is the USA, second is the UK.
 
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