Lower-level manufacturing for export will likely scale back and move elsewhere. Don't believe where ever the income levels get to there will be a wholesale hollowing out of industry western style if for no other reason than sufficient foreign capacity to cater for the Chinese domestic market, remember the whole of ASEAN has less than half of China's land and population!
Chinese Economics Thread
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Lower-level manufacturing for export will likely scale back and move elsewhere. Don't believe where ever the income levels get to there will be a wholesale hollowing out of industry western style if for no other reason than sufficient foreign capacity to cater for the Chinese domestic market, remember the whole of ASEAN has less than half of China's land and population!
The article is just propaganda.
If there was actual decoupling, we should see evidence of it.
A promise that decoupling will happen in the future means nothing.
They have been saying this stuff for over a decade, that people should be less reliant on China.
It never happened.
They also conveniently in the article mention nothing about European investment and commitments to China. In fact, I read a short story just a few hours ago about the new Italian right wing leader telling Xi that Italy wants to do more trade with China.
Decoupling is merely in the imagination of Americans, and their ideological partners in the anglo world. No one else cares.
Local assembly in lower cost regions is good for the planet, business and common prosperity in other countries. What really matters is the core parts are sanction proof.
Today China has advanced so far that Foxconn can’t even hire enough workers to do assembly in China, so it’s best to shift assembly. In a controlled manner.
China seems to be supportive of this, for example Vietnam can soon do local assembly and export to Europe via the new railway they just agreed to construct. All the chips and key components would be mainly Chinese. This is great for Vietnam, China, Europe and globalization.
When Vietnam is ready to climb the value chain to start adding Made in Vietnam components to the Assembled in Vietnam products, I am sure China will help and support them.
Guess China's done with them.
supercat
Major
China has a huge domestic market, which will only become bigger when China gets out of the middle-income trap and becomes a high-income country (see the diagram below). Many foreign companies will actually increase their investment in China. They will not only manufacture, they will also do R&D, in China, for China.
Articles written by "Chinese diaspora journalists" for Western MSM are usually just anti-China propaganda that can be safely dismissed out of hand.
The Institute of International Finance projects China will grow 3.2% in 2022 and 4.6% in 2023. For the U.S., the number is 1.6% in 2022 and 1% in 2023.
There is no such thing as middle income trap, only dogshit oligarchy government traps. The stagnation experienced by the likes of Brazil and Russia is the exact same type as experienced by the USA and India. But USA is clearly high income and India is clearly absolute bottom income.China has a huge domestic market, which will only become bigger when China gets out of the middle-income trap and becomes a high-income country (see the diagram below). Many foreign companies will actually increase their investment in China. They will not only manufacture, they will also do R&D, in China, for China.
Articles written by "Chinese diaspora journalists" for Western MSM are usually just anti-China propaganda that can be safely dismissed out of hand.
The Institute of International Finance projects China will grow 3.2% in 2022 and 4.6% in 2023. For the U.S., the number is 1.6% in 2022 and 1% in 2023.
The common thread here is not income, but governments that legalize corruption and then do shocked pikachu face when nothing gets done.
escobar
Brigadier
Western sanctions against Russia have resulted in delays to the joint Russia-China Arctic Liquified Natural Gas 2 project. Sanctions appear to be impacting Chinese companies' ability to secure specific western technologies used in LNG processing structures known as "trains" and access to mostly western company-owned and operated ice-hardened transport vessels capable of moving the trains from China to the Arctic.
From what I heard a couple months back the Arctic-LNG 2 Train 1 should be delayed one year. It was supposed to enter service this year but will only do this in 2023. All the modules are in Russia and it is a question of installing them. Without the support of the Western designers of the equipment it will take longer but it will be done. As for Train 2, from what I understand, Novatek contracted Western design companies and these ordered the modules to be made in China. With the sanctions these companies cannot do business with Russia anymore. So the modules for Train 2 might get stuck in the Chinese shipyards until someone untangles this mess. Then there is the matter that some of the equipment, like gas turbines to power the liquefaction units, was imported from the West. These might need to be redesigned and swapped out with Russian ones. This will make the whole unit less efficient and will substantially delay the project.
But the thing is, Russia did put its first Russian built gas liquefaction facilities into service this year near St. Petersburg. So they have have the basic technology.
But the thing is, Russia did put its first Russian built gas liquefaction facilities into service this year near St. Petersburg. So they have have the basic technology.