I remember when Huawei was hit with chip sanctions there were calls for Chinese biotech companies to stock up American instruments. If they haven't done that and weren't actively looking for alternatives in the last few years then they were really, really dumb.
Chinese Economics Thread
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I remember when Huawei was hit with chip sanctions there were calls for Chinese biotech companies to stock up American instruments. If they haven't done that and weren't actively looking for alternatives in the last few years then they were really, really dumb.
A few examples of domestic instruments.
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Good question, also curious about that.
If I had to wager I would maybe say investments and loans to foreign countries? But even then, it doesn't seem like that would be enough to consume all of that yearly trade surplus.
They do have a current account deficit too. Government income is less than expenditures at the moment. Also, they are buying gold.
2022-10-28 22:25:46Xinhua Editor : Xue Lingqiao
China on Friday issued a new catalog of industries where foreign investment will be encouraged, opening more sectors to foreign investment.
The 2022 version of catalog, jointly unveiled by China's National Development and Reform Commission (NDRC) and the Ministry of Commerce, will include 1,474 items, with 239 new items added and 167 existing ones modified.
The revision is particularly relevant to items related to the manufacturing sector and producer services and aims to optimize the foreign investment layout.
The latest version of the national-level sub-catalog will focus more on the high-quality development of the manufacturing sector and technological upgrading.
Professional design, technical services and development are among new sectors added to the catalog. More sectors are added to the sub-catalog for central and western regions.
The expanded catalog represents a significant step for China to advance high-level opening-up, stabilize foreign investment, and optimize the structure of foreign investment, said an official with the NDRC, adding that it will boost the expectations and confidence of foreign investors.
The new catalog will take effect on Jan. 1, 2023.
Customs data: Iran-China trade significantly rises
Friday, 28 October 2022 9:38 AM [ Last Update: Friday, 28 October 2022 8:27 PM ]
Beijing has long sought to boost ties with Tehran.
New data released by the General Administration of Customs of the People’s Republic of China (GACC) for September 2022 shows a significant growth in bilateral trade in the first three quarters of the year, Tansnim news agency has reported.
According to GACC figures, the trade exchange between Iran and China in the first nine months of the year grew 18% against the same period last year to $12.32 billion, the report said.
The two countries had exchanged $10.49 billion worth of goods between January and September in 2021, Tasnim added.
China's imports from Iran in the first nine months of the year reached $5.37, up 11% from the same period last year. Between January and September 2021, China had imported $4.81 billion of goods from Iran.
China's exports to Iran in the period also grew 23% to $6.95 billion against $5.65 billion the year before.
Beijing has long sought to boost ties with Tehran, with President Xi describing Iran as "China's major partner in the Middle East" on a rare visit to the country in 2016.
Last year, the two countries signed a landmark agreement in defiance of unilateral US sanctions to strengthen long-standing economic and political alliance.
The deal officially documents the Sino-Iranian Comprehensive Strategic Partnership that had been announced during a visit by President Xi to boost economic cooperation between the two countries for the next 25 years, and paves the way for Iran’s participation in the Belt and Road Initiative, a massive infrastructure project stretching from East Asia to Europe.
The deal allows China to commit to hundreds of billions of dollars in investment in various sectors of the Iranian economy. Iran, in return, will commit to provide China with a stable supply of energy over the next 25 years.
China has dismissed a US request to cut oil imports from the Islamic Republic, saying Beijing-Tehran economic and trade cooperation has always been conducted within the framework of international law.
AssassinsMace
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Medical equipment from the US to China was a huge business positive for the US. It also means the US is going to lose big time there too. The US will be going after all the sectors where they make a lot of money from China meaning those companies are more likely to go belly up. Just like the US banned 5-Axis machine tools being sold to China, China started making them killing the US's international sales.
A big part of Chinese foreign exchange reserves are semi official. The PBOC only holds the official reserves, other state owned commercial and policy banks also have foreign assets which can be directed by the central government.
I think a lot of China's USD is now being sold to foreign investors who are leaving China. Last year there were record inflows into Chinese bonds because the yield was much higher than for comparable US assets. Now, the situation is reversed and foreign investors are selling their RMB again. That also means that some foreign investors have to buy USD from the Chinese banks with their RMB. So for now China's foreign earnings are balanced by a deficit in investment. But once all the foreign bond investors who drove up the value of the RMB last year have left, the RMB is going to soar if the PBOC doesn't intervene
Giving your USD to foreign investors might sound bad, but that's what it means to have open financial markets. Trapping investors in RMB would only reduce the attractiveness of the market to future investments
It seems so, Chinese 10yr yield is only 2.68% while the US is 4%!