Chinese Economics Thread

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canonicalsadhu

Junior Member
Registered Member
If you look at the breakdown of GDP:
China has much higher agriculture + mining + manufacturing + utilities
US has much higher financial / insurance / business services + IT + healthcare
 
hullopilllw

hullopilllw

Junior Member
Registered Member
Biscuits said:
If you compare energy production:

China: 8.5 million GWh
America: 4.3 million GWh

3rd and 4th place India and Russia are dramatically less than USA at just around 1 million GWh.

Auto sales by country:

China: 21 million
America: 14 million

But this might be a bit skewed due to how important cars are in America, for example many poor ppl in USA will rather have a car than a home, because they can sleep in the car.

Official GDP numbers (in USD adjusted for inflation) are:

China: 30 trillion
USA: 25 trillion
India: 11 trillion

So actually looking at consumption markers, US economy is not overrated, because it really has a healthy lead on number 3. Its broadly China that is underrated.

I can't really explain why China has an abberant gdp vs consumption/output stat. One part might be that elites own a much smaller share of the economy, but that alone shouldn't cause what should be an almost 100% lead over number 2 to shrink to a mere 20% lead.

But economy isn't my strong suite and someone who is way better at this could maybe explain it.
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The Chinese has extreme high saving rate and like to hoard property. India and US...
 
Nilou

Nilou

New Member
Registered Member
Biscuits said:
If you compare energy production:

China: 8.5 million GWh
America: 4.3 million GWh

3rd and 4th place India and Russia are dramatically less than USA at just around 1 million GWh.

Auto sales by country:

China: 21 million
America: 14 million

But this might be a bit skewed due to how important cars are in America, for example many poor ppl in USA will rather have a car than a home, because they can sleep in the car.

Official GDP numbers (in USD adjusted for inflation) are:

China: 30 trillion
USA: 25 trillion
India: 11 trillion

So actually looking at consumption markers, US economy is not overrated, because it really has a healthy lead on number 3. Its broadly China that is underrated.

I can't really explain why China has an abberant gdp vs consumption/output stat. One part might be that elites own a much smaller share of the economy, but that alone shouldn't cause what should be an almost 100% lead over number 2 to shrink to a mere 20% lead.

But economy isn't my strong suite and someone who is way better at this could maybe explain it.
Click to expand...

"China is actually more of a consumption driven economy than the US. Retail sales is 39% of China’s GDP vs. 24% in the US ($7T vs. $5.5T). Surprised? However, consumption outside retail sales is 61% of US GDP vs. 11% in China. What is in the 61% (and not in China’s 11%)? it’s rent (shameless double counting), healthcare, tuition and financial services… US GDP doubled in last 20 years with industrial production stagnant… All the growth was in rent, healthcare, tuition and financial services. Tell me… has American housing, healthcare, tuition and financial stability improved as markedly as GDP growth would suggest? This is just garbage “services” growth… double counting and inflation. What America has been doing is funding its production vs consumption shortfall by pawning legacy assets… "

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escobar

escobar

Brigadier
This process will take years, maybe decades, but at this point is probably unstoppable.
We have heard rumors that Apple is planning to entirely relocate the majority of its production outside China over the next seven years. And that is Apple, probably the world’s best at electronics supply chain management. For everyone else, decoupling will come, but not quickly.
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mossen

mossen

Junior Member
Registered Member
escobar said:
This process will take years, maybe decades, but at this point is probably unstoppable.
Click to expand...
Color me skeptical. Apple supposedly manufactures the Mac Pro in the US but if you look under the hood, most of the components are still made outside the country. Final assembly is simply done in America.

Moreover, in some categories like batteries, China is now ahead of the curve vis-a-vis the West.

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As China rises in income levels, lower-level manufacturing will naturally leave for other shores. But China is replacing that with higher-end stuff. Western dependence will merely shift profile rather than dissipate.
 
H

hkbc

Junior Member
AF-1 said:
At some point of time, when local alternatives get equal or better, China should totally ban Windows, ios and android OSs.
If Apple moves all production from China, then ios should be banned immediately.
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If the alternatives are equal or better then there's no need to ban anything, unless you are an European bureaucrat or a brain washed Hong Konger you tend not to fight with your wallet or self interest! Most Chinese are very rational people, let's not imbue them with US style craziness, ban this, sanction that!
 
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